International
Monetary
Fund (IMF)
Ms. Sarah Jocelyn Pawlak
Mr. Brian Edward Tesser
Roles of the IMF?
What is it?
 International monetary cooperation
 Exchange rate stability
 Balanced growth of international trade
 Poverty reduction
 Helps members balance debt
 Agency of the UN
 Has its own charter, governing structure, finances
Important Documents
 Articles of Agreement
 December 27, 1945
 31 Articles
 Have roman numerals attached to them (I-XXXI)
 General obligations of members (VIII), Capital transfers (VI),
Obligations regarding exchange arrangements (IV)
 13 Schedules
 Have letters attached to them (A-M
 Quotas (A), Termination of Participation (H), Suspension of
Voting Rights (L)
 Can be, and has been amended.
Age of IMF
 Bretton Woods, New Hampshire, United States
 July 1944
 Officially created 1945
 44 countries were represented.
 Avoid economic policies that could create a situation similar
to the Great Depression
Changes since 1945
 Increased monetary support during crisis
 Greater flexibility regarding loans
 Gives advice to member nations
 Rectifies flaws after a crisis
 Reform of governance
Purpose
 WORLD FINANCIAL STABILITY
 Provide Economic Cooperation
 Trade Growth
 Employment Opportunities
 Lessened Poverty
 Exchange Rate Stability
 Open System of International Payment
 Monetary Loans
Membership
 Currently: 187 Countries
 Some countries not included: Cuba, North Korea, Vatican
City
 Members are represented through a quota system based
on their involvement in the global economy
 EX: US has more representation than Kenya
Leadership
“Who wants the
last spoonful of
Guac?!”
 24 Member Executive Board
 5 Executive Directors: Appointed by 5 Countries with the largest
quotas
 19 Executive Directors: Elected by remaining members
 Managing Director- Chairman of the Executive Board
 Controls major decisions within the IMF
 All member countries appoint a governor to the Board of Governors
 All countries are proportionally represented based on economic rank
 Meets several times a week
 Elections/Appointments occur every 2 years- Can be reelected
Leaders
 Managing Director- Christine Lagarde- France
 5 Appointed Executive Director
 Meg Lundsager- USA
 Mitshuiro Furusawa- Japan
 Hubert Temmeyer- Germany
 Ambroise Fayolle- France
 Alexander Gibbs- United Kingdom
 Others
 Carlos Perez-Verdia- Mexico
 Tao Zhang- China
 Aleksei V. Mozhin- Russia
 Jafar Mojarrad- Iran
Advantages of Membership
 International Monetary Cooperation
 Financial Stability
 Temporary Financial Help when in debt
 Financial Advice
 Increased chance of Economic Growth
Disadvantages of Membership
 Rich countries have more influence than poorer countries
 Only receives loans if a country will agree to conditions
 Conditions may lead to increased poverty
 Rich countries often dominate foreign resources
 Financial advice is not always sound
International Impact: Mexico
 Biggest Precautionary Loans
 In December, 2011, the Executive Board reviewed Mexico’s
request to access Flexible Credit Line resources.
 Aid was given to Mexico
 Because of the IMF, Mexican credibility in the global
economy has increased
 Introduced Structural Adjustment programs
International Impact: Nigeria
 IMF introduced the concept of Structural Adjustment
programs
 Nigeria has benefitted from them
 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
 One of the appointed Executive Directors due to their
large quota
 Very influential in the IMF
Works Consulted
Forbes. Forbes Magazine. Web. 23 Mar. 2012. <http://www.forbes.com/2009/04/02/
mexico-imf-credit-business-oxford.html>.
"IMF -- International Monetary Fund Home Page." Document Moved. Web. 23 Mar. 2012.
<http://www.imf.org/external/>.
"The International Monetary Fund." International Organisations. Web. 23 Mar. 2012.
<http://www.oxfam.org.uk/education/resources/milking_it/milkingit/information/
international_orgs/international_orgs_imf.htm>.
"Structural Adjustment Programs in Nigeria." Structural Adjustment Programs in Nigeria.
Web. 23 Mar. 2012. <http://sapnigeria.wordpress.com/>.
"Top Ten Reasons to Oppose the IMF." IMF. Web. 23 Mar. 2012. <http://
www.thirdworldtraveler.com/IMF_WB/TenReasons_OpposeIMF.html>.