International Monetary Fund

International Monetary Fund

In common with many of the multilaterals, plans were laid for the International Monetary Fund (IMF) in the closing days of World War II. In 1944, a meeting of individuals representing 44 countries was convened in Bretton Woods, New Hampshire, USA to draw up plans to bring order to the economies of the world. The participants were mindful that actions taken at the close of the first world war were largely unhelpful and at least partially responsible for the circumstances that led to the second.  The objective in 1944 was to create an organisation to encourage international monetary cooperation. The IMF's role – now as well as then –  is to help maintain economic stability and shared prosperity in the world. There are currently 189 IMF member countries and the organisation has lending resources of one trillion dollars – with zero interest rates applying to low-income countries. Additionally, funds are available for technical advice and training. The member countries are represented by 24 IMF executive directors and a staff of 150 nationalities. Significantly, in 2012, the IMF mandate was extended to include all macroeconomic and financial sector issues that affect global economic stability. The top post at the IMF is managing director and chairperson and the present (2020) incumbent is Kristalina Georgieva who replaced Christine Lagarde in this role in late 2019. Georgieva was the first representative from an emerging market economy (Bulgaria) to be appointed as head of the IMF. Working for the World Bank since 1993, she eventually became chairperson and later acting president before moving to the IMF. The financial resources of the IMF are, in the main, provided by member countries by way of quotas (which are broadly based on each country’s relative economic strengths). In 1969, the IMF created the Special Drawing Right (SDR) which is an international reserve asset and may be used to bolster member countries' official reserves.

Otaviano Canuto, IMF: What Happened to World Trade?

World trade suffered another disappointing year in 2015, experiencing a contraction in merchandise trade volumes during the first half and only a low recovery during the second half (Figure 1).

Ross Jackson: Stemming the Flow of Refugees – An Holistic Approach

The unprecedented surge of refugees streaming into Europe is no doubt due to the ongoing wars in Syria and Iraq and the unstable situation in Libya. However, refugees were arriving

Otaviano Canuto, IMF: Whither Emerging Markets Foreign Exchange Reserves

After a exponential rise in foreign exchange reserves accumulation by emerging markets from 2000 onwards, the tide seems to have turned south since mid-2014. Changes in capital flows and commodity

Brazil & Argentina: Only One Getting Real

Brazil is just one step removed from facing its reality. With nearly all macroeconomic indicators pointing in the less desirable of directions, the country is facing a downgrade of its
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Otaviano Canuto, IMF: Trade Opening Could Be a Source of Growth for Brazil

International trade has undergone a radical transformation in the past decades as production processes have fragmented along cross-border value chains. The Brazilian economy has remained on the fringes of this

Otaviano Canuto, IMF: How Commodity-Dependent Are Latin American Economies?

The end of the upswing phase of the commodity price super-cycle, after its peak in 2011, has lowered economic growth prospects in most of Latin America. While that broad statement

All Eyes on Greece: Is the IMF Asking for More than PM Tsipras Can Deliver?

Financial markets around the world slipped today on growing fears that Greece may be unable to reach an agreement with her international creditors and thereby default on a $1.6 billion

The Time Is Now: Paradigm Shift Signals Opportunity

Few people realise that in 2013 a turning point was reached. In that year, emerging economies displaced developed markets as the main engines of global economic growth. This was not
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Ghana: Crisis as a Hallmark of Enduring Success

A solid mechanism has been put in place with Norwegian assistance to ensure that the proceeds from Ghana’s newly found offshore oilfields are spent wisely and to the benefit of

World Bank Group: A Promising New Resource for Development – The Potential of Sovereign Wealth Funds

Mobilizing finance for long-term, large-scale direct investment in development is a daunting global challenge. However, a growing and potentially vast source of capital seems poised to transform the process of

IMF on MENAP: Call for Focus on Job Creation

The near-term economic outlook for the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region has weakened. Difficult political transitions and increased regional uncertainties arising from the complex civil war

US Political Strife Threatens to Derail IMF Reforms

The International Monetary Fund (IMF) has been reduced to a bargaining chip. Its request for $63bn (£38.3bn) in additional funding was unceremoniously discarded by the Appropriations Committee of the US
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