1. Mani Dasoju and James Wu
The IMF
Mani Dasoju and James Wu

2. IMF stands for International Monetary Fund Supranational organization
What is the IMF?
IMF stands for International Monetary Fund
Supranational organization
Financial institution
Charged with “overseeing the international monetary system”
Exchange rates, tariffs, international payments

3. History - Cooperation and Reconstruction (1944-1971)
Established near the end of WWII (July, ) along with the World Bank
Bretton Woods conference in New Hampshire
Founding Charter - Bretton Woods Agreement
Initially 29 member countries
Made to rebuild economies and extinguish exchange restrictions

4. History - The End of the Bretton Wood System (1972-1981)
Ended the Bretton Woods System in 1972
Countries can now select their own exchange rate
The Trust Fund was created to support the poorest countries
Structural Adjustment Facility created in 1986
SAF created as a loan program
Enhanced in 1987

5. History - Debt and Painful Reforms (1982-1989)
Oil shocks create international debt crisis
Multiple countries asking for loan and help at the same time
IMF plans a large-scale response plan
IMF solved many of the economical issues that the countries faced

6. East Asia hit by heavy financial crisis - 1997
History - Societal Change for Eastern Europe and Asian Upheaval ( )
The fall of the Berlin Wall made the IMF an almost universal institution in 1989
Members increased to 172
Staff increased by 30%
East Asia hit by heavy financial crisis
IMF launched the Financial Sector Assessment Program with the World Bank

7. History - Globalization and the Crisis (2005-Present)
Globalization provided growth to the members, IMF was paid back
IMF faced rapid growth in its members
The growth caused economies to become fragile and breakdown
IMF then and now is built to restore the economies of the countries that fell into recession

8. Changes from original structure
Bretton Woods System no longer in place
Exchange rates were tied to U.S currency, which was based on the Gold standard
The U.S established a free-floating currency, removing the Gold standard
IMF had to adjust, eliminating the need to set fixed exchange rates
IMf’s power has lessened due to proliferation of free-floating currencies
Criticism has sprouted regarding the Managing Directors being primarily European

9. Membership now extends to 188 member nations (March, 2013)
Five “quota holders” have the most power:
United States
United Kingdom
Germany
Japan
France

10. Managing Director: Chairman of the Executive board
Leadership structure
Board of Governors: Two Governors per member country appointed by each member country
Executive board: 24 Directors, chosen to represent distinct regional groups
US, UK, France, Japan, Germany, Russia, China, and Saudi Arabia have their own individual Directors
Managing Director: Chairman of the Executive board

11. IMF allows countries to borrow money as a last resort
Advantages
Gives an avenue for financial security/recovery if a country cannot manage its debt
IMF allows countries to borrow money as a last resort
IMF makes an effort to fix economies
IMF has experience fixing economies, it can impose proper reforms
Assesses economies to help governments

12. IMF may inhabit G8 perspectives Promotes and advocates neoliberalism
Disadvantages
Wealthier nations have more of a say in the IMF and tend to wield greater influence over policy.
IMF may inhabit G8 perspectives
Promotes and advocates neoliberalism
Takes economies hostage to their control

13. Helps countries meet loan payments Stabilizes economies
International Impact
Helps countries meet loan payments
Stabilizes economies
Improves overall economic growth
Increases trade fluency

14. Effect on the CGAP countries
UK: Is one of the large quota holders and has a large vote in the IMF. Criticized for having too much power in the IMF and influencing other members to become democratic and liberal.
Russia: Is also a quota holder. Has the least percentage of vote out of the holders. Russia dislikes the IMF due to the US domination.
China: A quota holder. IMF has helped China with globalization.
Iran: Is part of the IMF. Has only .62% vote in the IMF, which is the average amount for the other countries.
Mexico: Is part of the IMF. Mexico has a high vote percentage. Mexico takes a lot of help from the IMF’s funds but is restricted by the laws of the IMF.
Nigeria: Is a member of the IMF. Nigeria struggles with the IMF, since it predicts the Naira will be devalued.

15. Works Cited
"International Monetary Fund." Issues: Understanding Controversy and Society. ABC-CLIO, Web. 23 Mar
Pettinger, Tejvan. "Economics Essays: IMF - Advantages and Disadvantages." Economics Essays: IMF - Advantages and Disadvantages. Economics Help, 08 Nov Web. 23 Mar
Schroeder, Michael J. "International Monetary Fund (IMF)." Encyclopedia of World History, Vol. 6. New York: Facts On File, Modern World History Online. Web. 23 Mar