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Presented By
Bhakti ShahCharmi MehtaDharmin ShahVishesh GadaYash KothariRajvi Dedhia
The International Monetary Fund
Created in 1944 at the Bretton Woods
conference to prevent the kinds of chain
reaction in the economic system that
caused world currencies to collapse like in
the Great Depression of the 1930s
International monetary fund
The IMF in short
IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for two
yearterms by groups of countries known asldquoConstituenciesrdquo
Growth in IMF Membership
1945 ndash 2003 In the beginning 29
member countries Today184 member
countries Staff of about 2680
persons Two-thirds are
economists in 139 countries
Headquarters inWashington
DC
Purposes
Promote international monetary cooperationexchange stability and orderly exchangearrangements
Foster economic growth and high levels ofemployment
Temporary financial assistance to countries to help the balance of payments adjustments
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
The International Monetary Fund
Created in 1944 at the Bretton Woods
conference to prevent the kinds of chain
reaction in the economic system that
caused world currencies to collapse like in
the Great Depression of the 1930s
International monetary fund
The IMF in short
IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for two
yearterms by groups of countries known asldquoConstituenciesrdquo
Growth in IMF Membership
1945 ndash 2003 In the beginning 29
member countries Today184 member
countries Staff of about 2680
persons Two-thirds are
economists in 139 countries
Headquarters inWashington
DC
Purposes
Promote international monetary cooperationexchange stability and orderly exchangearrangements
Foster economic growth and high levels ofemployment
Temporary financial assistance to countries to help the balance of payments adjustments
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
The IMF in short
IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for two
yearterms by groups of countries known asldquoConstituenciesrdquo
Growth in IMF Membership
1945 ndash 2003 In the beginning 29
member countries Today184 member
countries Staff of about 2680
persons Two-thirds are
economists in 139 countries
Headquarters inWashington
DC
Purposes
Promote international monetary cooperationexchange stability and orderly exchangearrangements
Foster economic growth and high levels ofemployment
Temporary financial assistance to countries to help the balance of payments adjustments
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Growth in IMF Membership
1945 ndash 2003 In the beginning 29
member countries Today184 member
countries Staff of about 2680
persons Two-thirds are
economists in 139 countries
Headquarters inWashington
DC
Purposes
Promote international monetary cooperationexchange stability and orderly exchangearrangements
Foster economic growth and high levels ofemployment
Temporary financial assistance to countries to help the balance of payments adjustments
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Purposes
Promote international monetary cooperationexchange stability and orderly exchangearrangements
Foster economic growth and high levels ofemployment
Temporary financial assistance to countries to help the balance of payments adjustments
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Operations
1048707 Monitoring economic and financial developments and policies in member countries and at the global level giving policy advice to its members based on its more than fifty years of
experience1048707 Lending to member countries with balance of payments problems supporting adjustment and reform policies aimed at correcting the
underlying problems1048707 Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Operations hellipcontinued
1048707 IMF looks at the performance of the economy as a whole (macroeconomic performance)1048707 Focuses also on the financial sector policies Ex regulation and supervision of banks and
other financial institutions1048707 Pays attention to structural policies that affect macroeconomic performance Ex labor market policies (affect employment
and wage behavior)
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Current Role
1048707 Enormous economic challenges in the early 1990s
1048707 Purposes have remained the same1048707 But operations have developed Surveillance
Financial assistanceTechnical assistance
1048707 Its role has become more important because of theexpansion of its membership The number ofmember countries has more than quadrupled fromthe date it was formed
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Current Role hellipcontinued
In September 2000 the IMFrsquos then managingdirector Horst Koumlhler set out some majorpriorities for the work of the IMF1048707 Promoting sustained non-inflationary economicgrowth1048707 Being in the center of competence1048707 Focusing on its core macroeconomic and financialareas of responsibility1048707 Working in a complementary fashion with otherinstitutions established1048707 Being an open institution
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
How the polices are determined
hellip in their headquarters in Washington The Executive Board meets three times a
weekmaybe more
The Board has a voting system- The larger the economy the more voting powerit has- But most decisions are based on consensus
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Quotas
` Imps main resources subscriptions (quotas)` Countries pay 25 percent of their quota subscriptions in
Special Drawing Rights (SDRs) or major currencies` IMF can call on the remainder payable in the members
own currency to be made available for lending asneeded
` Quotas-Determine the amount of financing that each country canreceive from the IMF-Are the main determinant of countries voting power in the IMF-Broadly reflect members relative size in the world economy
` The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Members with Ten Largest Quotas
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Taking a closer lookhellip
Studying IMFrsquos policies in terms of
positive and negative direct and
indirect effects
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Positive effectshellip
The IMF offers financial assistanceThree implemented facilities
-gt Stand-by Agreement
-gt EFF (Extended Fund Facility)
-gt PRGF (Poverty reduction and Growth Facility)
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Positive effects hellipcontinued
The IMF offers technical assistance to transitional economies
The former Soviet Republics
South Korea in the 1997 financial crisis
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Negative effects
The structural adjustment is undemocratic and inhumane
1048707 Causing social problems1048707 Foreign corporations and investors take
advantage of local cheap labor but have no regard for the environmentThe gap between the rich and the poor
is gettingbigger
Example of ArgentinaThe IMF has become a tool of the USA
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
Tackling current challenges
Emergency lending to emerging markets
Helping low-income countries fight the crisis
Advocating global fiscal stimulus
Reforming the international financial system
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