International Monetary Fund (IMF)
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Transcript of International Monetary Fund (IMF)
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International Monetary Fund (IMF)
Ms. Sarah Jocelyn PawlakMr. Brian Edward Tesser
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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
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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.
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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
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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
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Purpose
WORLD FINANCIAL STABILITY Provide Economic Cooperation Trade Growth Employment Opportunities Lessened Poverty Exchange Rate Stability Open System of International Payment Monetary Loans
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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
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Leadership 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
“Who wants the last
spoonful of Guac?!”
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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
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Advantages of Membership
International Monetary Cooperation Financial Stability Temporary Financial Help when in debt Financial Advice Increased chance of Economic Growth
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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
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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
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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
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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
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Works ConsultedForbes. 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>.