International Monetary Fund (IMF) Ms. Sarah Jocelyn Pawlak Mr. Brian Edward Tesser

Roles of the IMF? What is it? International monetary cooperation International monetary cooperation Exchange rate stability Exchange rate stability Balanced growth of international trade Balanced growth of international trade Poverty reduction Poverty reduction Helps members balance debt Helps members balance debt Agency of the UN Agency of the UN Has its own charter, governing structure, finances Has its own charter, governing structure, finances

Important Documents Articles of Agreement Articles of Agreement December 27, 1945 December 27, Articles 31 Articles Have roman numerals attached to them (I-XXXI) Have roman numerals attached to them (I-XXXI) General obligations of members (VIII), Capital transfers (VI), Obligations regarding exchange arrangements (IV) General obligations of members (VIII), Capital transfers (VI), Obligations regarding exchange arrangements (IV) 13 Schedules 13 Schedules Have letters attached to them (A-M Have letters attached to them (A-M Quotas (A), Termination of Participation (H), Suspension of Voting Rights (L) Quotas (A), Termination of Participation (H), Suspension of Voting Rights (L) Can be, and has been amended. Can be, and has been amended.

Age of IMF Bretton Woods, New Hampshire, United States Bretton Woods, New Hampshire, United States July 1944 July 1944 Officially created 1945 Officially created countries were represented. 44 countries were represented. Avoid economic policies that could create a situation similar to the Great Depression Avoid economic policies that could create a situation similar to the Great Depression

Changes since 1945 Increased monetary support during crisis Increased monetary support during crisis Greater flexibility regarding loans Greater flexibility regarding loans Gives advice to member nations Gives advice to member nations Rectifies flaws after a crisis Rectifies flaws after a crisis Reform of governance Reform of governance

Purpose WORLD FINANCIAL STABILITY WORLD FINANCIAL STABILITY Provide Economic Cooperation Provide Economic Cooperation Trade Growth Trade Growth Employment Opportunities Employment Opportunities Lessened Poverty Lessened Poverty Exchange Rate Stability Exchange Rate Stability Open System of International Payment Open System of International Payment Monetary Loans Monetary Loans

Membership Currently: 187 Countries Currently: 187 Countries Some countries not included: Cuba, North Korea, Vatican City Some countries not included: Cuba, North Korea, Vatican City Members are represented through a quota system based on their involvement in the global economy Members are represented through a quota system based on their involvement in the global economy EX: US has more representation than Kenya EX: US has more representation than Kenya

Leadership 24 Member Executive Board 24 Member Executive Board 5 Executive Directors: Appointed by 5 Countries with the largest quotas 5 Executive Directors: Appointed by 5 Countries with the largest quotas 19 Executive Directors: Elected by remaining members 19 Executive Directors: Elected by remaining members Managing Director- Chairman of the Executive Board Managing Director- Chairman of the Executive Board Controls major decisions within the IMF Controls major decisions within the IMF All member countries appoint a governor to the Board of Governors All member countries appoint a governor to the Board of Governors All countries are proportionally represented based on economic rank All countries are proportionally represented based on economic rank Meets several times a week Meets several times a week Elections/Appointments occur every 2 years- Can be reelected Elections/Appointments occur every 2 years- Can be reelected “Who wants the last spoonful of Guac?!”

Leaders Managing Director- Christine Lagarde- France Managing Director- Christine Lagarde- France 5 Appointed Executive Director 5 Appointed Executive Director Meg Lundsager- USA Meg Lundsager- USA Mitshuiro Furusawa- Japan Mitshuiro Furusawa- Japan Hubert Temmeyer- Germany Hubert Temmeyer- Germany Ambroise Fayolle- France Ambroise Fayolle- France Alexander Gibbs- United Kingdom Alexander Gibbs- United Kingdom Others Others Carlos Perez-Verdia- Mexico Carlos Perez-Verdia- Mexico Tao Zhang- China Tao Zhang- China Aleksei V. Mozhin- Russia Aleksei V. Mozhin- Russia Jafar Mojarrad- Iran Jafar Mojarrad- Iran

Advantages of Membership International Monetary Cooperation International Monetary Cooperation Financial Stability Financial Stability Temporary Financial Help when in debt Temporary Financial Help when in debt Financial Advice Financial Advice Increased chance of Economic Growth Increased chance of Economic Growth

Disadvantages of Membership Rich countries have more influence than poorer countries Rich countries have more influence than poorer countries Only receives loans if a country will agree to conditions Only receives loans if a country will agree to conditions Conditions may lead to increased poverty Conditions may lead to increased poverty Rich countries often dominate foreign resources Rich countries often dominate foreign resources Financial advice is not always sound Financial advice is not always sound

International Impact: Mexico Biggest Precautionary Loans Biggest Precautionary Loans In December, 2011, the Executive Board reviewed Mexico’s request to access Flexible Credit Line resources. In December, 2011, the Executive Board reviewed Mexico’s request to access Flexible Credit Line resources. Aid was given to Mexico Aid was given to Mexico Because of the IMF, Mexican credibility in the global economy has increased Because of the IMF, Mexican credibility in the global economy has increased Introduced Structural Adjustment programs Introduced Structural Adjustment programs

International Impact: Nigeria IMF introduced the concept of Structural Adjustment programs IMF introduced the concept of Structural Adjustment programs Nigeria has benefitted from them Nigeria has benefitted from them Has enabled them to create a free market economy Has enabled them to create a free market economy

International Impact: United Kingdom The UK is one of the top 5 countries involved in the IMF The UK is one of the top 5 countries involved in the IMF One of the appointed Executive Directors due to their large quota One of the appointed Executive Directors due to their large quota Very influential in the IMF Very influential in the IMF

Works Consulted Forbes. Forbes Magazine. Web. 23 Mar "IMF -- International Monetary Fund Home Page." Document Moved. Web. 23 Mar "The International Monetary Fund." International Organisations. Web. 23 Mar "Structural Adjustment Programs in Nigeria." Structural Adjustment Programs in Nigeria. Web. 23 Mar "Top Ten Reasons to Oppose the IMF." IMF. Web. 23 Mar