The International Monetary Fund (IMF) is an international organization that monitors the global financial system by tracking the macroeconomic policies of its member countries, especially those that have an impact on the exchange rate and the balance of payments. This is an organization with the clear goal of stabilizing the international exchange rate and promoting development. It also provides highly leveraged loans mainly to poor countries. Its headquarters is located in Washington, DC, USA.

Organization and purpose:

The International Monetary Fund (IMF) was founded in July 1944, with 45 members at first. [3] Its goal is to stabilize the exchange rate and help rebuild the international payment system in the world. Countries contribute to the fund pool, and countries with unbalanced international payments can borrow from the fund pool temporarily. (Condon, 2007)

The International Monetary Fund describes itself as "an organization composed of 186 countries (as of June 29, 2009, Kosovo was the 186 country), [4][5] committed to promoting global monetary cooperation, ensuring financial stability, promoting international trade, promoting high employment and sustainable economic growth, and reducing poverty". With the exception of Taiwan Province (expelled in 1980), North Korea [6], Cuba (left behind in 1964), Andorra, Monaco, Liechtenstein, Tuvalu and Nauru [7], all UN member countries participate directly in the IMF. In the 24-member Executive Board, most members are represented by other members, but all members belong to the IMF Board. [8]

[Edit] History

1944 In July, during the United Nations Monetary and Financial Conference, the International Monetary Fund was formally established. Representatives of 44 governments met at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States of America, and the participants agreed on an international economic cooperation framework. [9] The International Monetary Fund was formally established on 19451February 27th, when the first batch of 29 countries signed its articles of agreement. The statutory purpose of the International Monetary Fund today is the same as that of 1943 (see # Aid and Reform).

[Editor] Today

With the increase in the number of members, the influence of the International Monetary Fund in the global economy has steadily increased. The number of members of the International Monetary Fund has more than tripled compared with the 44 countries when it was founded, which particularly reflects the political independence of many developing countries and the recent disintegration of the Soviet bloc. The expansion of the IMF's membership and the changes in the world economy require the IMF to adjust in various ways in order to continue to serve its purpose effectively.

In 2008, faced with the shortage of income, the Executive Board of the International Monetary Fund (IMF) agreed to sell some IMF gold reserves. On April 27th, 2008, Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, welcomed the decision of the Board of Directors on April 7th, 2008, proposing a new framework for the Fund, aiming at eliminating the estimated budget deficit of US$ 400 million in the next few years. The budget proposal includes a drastic reduction in expenditure of1million dollars until 20 1 1, which will include as many as 380 employees being laid off. [ 10]

The G20 London Summit in 2009 decided that the IMF would need additional financial resources to meet the expected needs of its member countries in the current global crisis. As part of this decision, G20 leaders promised to increase the supplementary cash of the International Monetary Fund by 10 times to $500 billion, and to allocate another $250 billion to member countries through special drawing rights.

Data dissemination system

Participants in the IMF data dissemination system:

Members of the International Monetary Fund use SDDS.

Member of the International Monetary Fund, using GDDS.

Member of the International Monetary Fund, not using any DDS system.

Non-IMF entities using SDDS

Non-IMF entities using GDDS

The International Monetary Fund (IMF) began to formulate data dissemination standards with a view to guiding IMF member countries to release their economic and financial data to the public. The International Monetary and Financial Committee (IMFC) has approved the guidelines for dissemination standards, which are divided into two layers: General Data Dissemination System (GDDS) and Special Data Dissemination Standard (SDDS).

The Executive Board of the International Monetary Fund approved SDDS and GDDS in 1996 and 1997 respectively, and the subsequent amendments were published in the revised "Guide to General Data Dissemination System". The system is mainly for statisticians and aims to improve many aspects of a national statistical system. It is also part of the World Bank's Millennium Development Goals and Poverty Reduction Strategy Paper.

The International Monetary Fund has established a set of systems and standards to guide member countries to release their economic and financial data to the public. At present, there are two such systems: General Data Dissemination System (GDDS) and Superset Special Data Dissemination System (SDDS), which are used by those member countries that have or are seeking to enter the international capital market.

The main goal of GDDS is to encourage IMF member countries to establish a framework for improving data quality and strengthening statistical capacity building. This will involve compiling metadata describing current statistical data collection practices and making plans for improvement. After establishing a framework, a country can assess its statistical needs and set priorities for improving the timeliness, transparency, reliability and availability of financial and economic data.

Some countries initially used GDDS, but later upgraded to SDDS.

Some entities that are not members of IMF themselves also provide statistical data to these systems:

Palestinian Authority -GDDS

Hong kong -SDDS

European Union institutions:

The European Central Bank in the Eurozone-SDDS

Eurostat is responsible for the whole EU -SDDS, so it provides data from Cyprus (not using any data exchange system alone) and Malta (only using GDDS alone).

[Edit] Membership

Any country can apply to join the International Monetary Fund. The application will first be considered by the Executive Board of the International Monetary Fund. After deliberation, the Executive Board will submit a report to the Board of Directors of the International Monetary Fund and make recommendations in the form of a "member resolution". These suggestions include the quota quantity of the International Monetary Fund, the payment form of membership fees and other customary terms and conditions of membership. After the "Membership Resolution" is passed by the Board of Directors, the applicant country needs to take legal steps required by its domestic laws to enable it to sign the articles of agreement of the International Monetary Fund and fulfill its obligations as a member of the International Monetary Fund. Similarly, any member country can withdraw from the IMF, although this is rare. For example, in April 2007, President Rafael Correa of Ecuador announced the expulsion of the World Bank representative in that country. A few days later, at the end of April, Venezuelan President Hugo Chavez announced that his country would withdraw from the IMF and the World Bank. Chavez called the two organizations "tools of the empire" to serve the interests of the North. [1] As of June 2009, the two countries are still members of these two organizations. Venezuela was forced to make concessions because withdrawal would trigger the default clause of its sovereign bonds.

A member's quota in the IMF determines its subscription, voting weight, access to IMF financing and the allocation of special drawing rights (SDR). The United States has exclusive veto power. Member States cannot unilaterally increase quotas-the increase in quotas must be approved by the Executive Committee and linked to a formula that includes many variables, such as the size of a country in the world economy. For example, in 200 1 year, China was prevented from raising its quota to its desired level, thus ensuring that it remained the smallest among the G7 economies (Canada). [13] In September 2005, the members of the International Monetary Fund agreed to increase the first round of special quotas for four countries, including China. On March 28th, 2008, the Executive Board of the International Monetary Fund concluded a period of extensive discussions and negotiations on a package of major reforms aimed at strengthening the governance of the institution, which will transfer quotas and voting rights from developed countries to emerging markets and developing countries. The IMF board must vote on these reforms before April 28, 2008.

Aid and reform

Main articles: Washington Consensus and Structural Adjustment Plan.

The main task of the International Monetary Fund (IMF) is to provide financial assistance to countries experiencing serious financial and economic difficulties by using the funds deposited in the IMF by the IMF 186 member countries. Member States that often have balance-of-payments problems due to these difficulties may ask for loans to help make up the gap between the national income and/or the amount that can be borrowed from other official lenders and the operating expenses that the state must pay, including the cost of importing basic goods and services. In return, countries are usually required to initiate some reforms, which is often called the "Washington Consensus". These reforms are considered to be beneficial to those countries with fixed exchange rate policies, which may engage in financial, monetary and political activities that may lead to the crisis itself. For example, countries with serious budget deficit, rampant inflation, strict price control or obviously overvalued or undervalued currencies face the risk of balance of payments crisis. Therefore, the structural adjustment plan is at least ostensibly designed to ensure that the International Monetary Fund is actually helping to prevent the financial crisis, not just providing funds for financial recklessness.

[Editor] IMF/World Bank supports military dictatorship

Since the late Cold War, the role of the Bretton Woods institutions has been controversial, because the decision makers of the International Monetary Fund support military dictatorships that are friendly to American and European companies. Critics also claim that the IMF is usually indifferent or hostile to their views on democracy, human rights and labor rights. This debate triggered the anti-globalization movement. Support the IMF's view that economic stability is the forerunner of democracy; However, critics have highlighted various examples of democratized countries in trouble after accepting IMF loans. [ 16]

In the1960s, the International Monetary Fund (IMF) and the World Bank provided tens of millions of dollars in loans and credits to the government of Brazil's military dictator Castello Branco, but the previously elected government did not get these loans and credits. [ 17]

Countries that were or are under military dictatorship when they were members of the International Monetary Fund/World Bank (support from various sources, in billions of dollars)

criticize

"The interests of the International Monetary Fund represent the big international interests that seem to be established and concentrated on Wall Street."

-ernesto guevara, Marxist revolutionary, 1959[ 19]

The two major criticisms of economists are that financial aid always comes with so-called "conditions", including structural adjustment plans. It is claimed that conditionality (the economic performance target set as a prerequisite for IMF loans) hinders social stability, thus hindering the goals announced by the IMF, while structural adjustment programs lead to an increase in poverty in recipient countries. [20]

One of the main conditions of structural adjustment programs faced by troubled countries is that the government sells as many domestic assets as possible, usually at a large discount to western enterprises.

That is to say, the International Monetary Fund sometimes advocates "austerity plan" to increase taxes even when the economy is weak, so as to generate government revenue and balance the budget deficit, which is a Keynesian policy. People often suggest that countries reduce the corporate tax rate. Joseph Stiglitz, former chief economist and senior vice president of the World Bank, criticized these policies in his book Globalization and Its Discontents. [2 1] He believes that by turning to a more monetarist approach, the IMF no longer has an effective purpose, because it aims to provide funds for countries to implement Keynesian reflation. The IMF "did not participate in the conspiracy, but it reflected the interests and ideology of western financial circles." [22]

Argentina was once regarded by the International Monetary Fund as a model country to follow the policy recommendations of the Bretton Woods institutions. In 2006, it experienced a disastrous economic crisis. Some people think that this was caused by the budget restrictions induced by the International Monetary Fund, which weakened the government's ability to maintain national infrastructure, even in key areas such as health, education and security, and the privatization of strategically important national resources. [23] Others blame the crisis on Argentina's poorly designed fiscal federalism, which led to a rapid increase in subnational expenditures. [24] This crisis has intensified the general hatred of Argentina and other South American countries towards this institution, and many people blame the International Monetary Fund for the economic problems in this region. [25] At present-as of the beginning of 2006-there is a trend of moderate left-wing government in this region, and people pay more and more attention to the formulation of regional economic policies that are largely independent of the pressure of large enterprises, all of which are blamed on this crisis.

Another example of the aggravation of the IMF structural adjustment programme is in Kenya. Before the International Monetary Fund intervened in the country, the Central Bank of Kenya supervised all money flows in and out of the country. The International Monetary Fund requires the Central Bank of Kenya to allow easier currency flow. However, this adjustment brought little foreign investment, but it allowed Kamlesh Manusuklal Damji Pattni, with the help of corrupt government officials, to absorb billions of Kenyan shillings in what was later called the Goldenberg scandal, making the situation in the country worse than before the implementation of the reform of the International Monetary Fund. [need to quote] In an interview, former Romanian Prime Minister T? Riceanu pointed out that "since 2005, the IMF has been making mistakes in appreciating the country's economic performance". [26]

In September 2007, the IMF stated that "in view of the strong fundamentals of Ireland's economy and the authorities' commitment to prudent policies, directors expect that economic growth will remain strong in the medium term". [27] 17 months later, in April 2009, The New York Times quoted a Nobel laureate in economics as saying that Ireland was a model of the worst situation of the global economy. [28]

Overall, the IMF's success record is considered to be limited. [Need to quote] Although it was created to help stabilize the global economy, since 1980, critics claim that more than 100 countries (or it is said that most members of the IMF) have experienced a banking collapse, which they claim has reduced GDP by 4% or more, far more than at any time in the history after the Great Depression. [Need to quote] There is a considerable delay in the response of the International Monetary Fund to any crisis, and it often only responds to the crisis, and even creates the crisis [29] instead of preventing it. This fact has led many economists to advocate reform. In 2006, an IMF reform agenda called "Medium-term Strategy" was widely supported by IMF member countries. The agenda includes changing the management of the International Monetary Fund to strengthen the role of developing countries in the decision-making process of the Fund, and taking measures to deepen the effectiveness of its core tasks, namely, so-called economic supervision or helping member countries adopt macroeconomic policies that will maintain global growth and reduce poverty. On June 6, 2007, the Executive Board of the International Monetary Fund adopted the 2007 decision on bilateral supervision, which is a landmark measure, replacing the 30-year decision of IMF member countries on how the IMF should analyze the economic results at the national level.

Impact on public health

In 2008, a study published in the Open Access Library of Public Science by analysts from Cambridge University and Yale University concluded that the strict conditions imposed by the International Monetary Fund on international loans caused thousands of people in Eastern Europe to die of tuberculosis because public health care had to be weakened. Among the 265,438+0 countries loaned by the International Monetary Fund, the number of tuberculosis deaths increased by 16.6%.

Criticism from free market advocates

Typically, the IMF and its supporters advocate monetarism. Therefore, believers in the supply school usually find themselves in open disagreement with the International Monetary Fund. The International Monetary Fund (IMF) often advocates currency devaluation, which is criticized by the supporters of the supply school as inflation. Secondly, they linked high taxes under the "austerity plan" with economic contraction.

Complaints also point to the undervaluation of the IMF's gold reserves. At the beginning of the establishment of 1945, the International Monetary Fund set the price of gold at $35 per troy ounce. The Nixon administration raised the fixed asset value of gold to support the world market price. Therefore, the fixed exchange rate of the currency linked to gold is converted into a floating exchange rate, which is also based on the market price and exchange rate. This is largely because under the fixed exchange rate system, petrodollars outside the United States exceed the support of gold in Fort Knox. The fixed exchange rate system is only used to limit the amount of aid that the organization can use to help debt-ridden countries. The current regulations of the International Monetary Fund prohibit member countries from linking their currencies to gold. [need to quote]

[Edit] Try to repair the image

Research by Pew Research Center shows that more than 60% of Asians and 70% of Africans believe that the International Monetary Fund and the World Bank have a positive impact on their countries. However, it is worth noting that the survey summarizes international organizations including the World Trade Organization. In addition, a similar proportion of people in the western world believe that these international organizations have had a positive impact on their countries. In 2005, the International Monetary Fund was the first multilateral financial institution to implement a comprehensive debt relief plan for the poorest countries in the world, which was called the Multilateral Debt Relief Initiative. By the end of 2006, 23 countries (mainly in sub-Saharan Africa and Central America) had all their debts owed to the International Monetary Fund.

general manager

Historically, the president of the International Monetary Fund was a European and the president of the World Bank was an American. However, this standard is increasingly questioned, and competition for these two positions may soon be open, including other qualified candidates from anywhere in the world. Confirm that the executive directors of the managing directors are elected by the finance ministers of the countries they represent. The first vice-president and second-in-command of the International Monetary Fund are traditionally (and now) Americans.

I didn't write it down, and this: http://www.imfsite.org/finprograms/oando.html.