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TABLE OF CONTENT

INTERNATIONAL MONETARY FUNDS (IMF)

INTRODUCTION:

The International Monetary Fund (IMF) is an international

organization that oversees the global financial system by following the
macroeconomic policies of its member countries; in particular those with an
impact on exchange rates and the balance of payments. It is an organization
formed to stabilize international exchange rates and facilitate development. It also
offers highly leveraged loans mainly to poorer countries. Its headquarters are
located in Washington, D.C., USA.

ORGANIZATION AND STRUCTURE:

The International Monetary Fund was created in July of

1944, originally with 46 members, with a goal to stabilize exchange rates and
assist the reconstruction of the world's international payment system. Countries
contributed to a pool which could be borrowed from, on a temporary basis, by
countries with payment imbalances. (Condon, 2007)

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The IMF describes itself as "an organization of 185 countries (Montenegro being
the 185th, as of January 18, 2007), working to foster global monetary cooperation,
secure financial stability, facilitate international trade, promote high employment
and sustainable economic growth, and reduce poverty". With the exception of
Taiwan (expelled in 1980), North Korea, Cuba (left in 1964), Andorra, Monaco,
Liechtenstein, Tuvalu and Nauru, all UN member states participate directly in the
IMF. Most are represented by other member states on a 24-member Executive
Board but all member countries belong to the IMF's Board of Governors.

HISTORY:

The International Monetary Fund was formally created in

July 1944 during the United Nations Monetary and Financial Conference. The
representatives of 44 governments met in the Mount Washington Hotel in the area
of Breton Woods, New Hampshire, United States of America, with the delegates to
the conference agreeing on a framework for international economic
cooperation.[7] The IMF was formally organized on December 27, 1945, when the
first 29 countries signed its Articles of Agreement. The statutory purposes of the
IMF today are the same as when they were formulated in 1943 (see #Assistance
and reforms).

TODAY:

The IMF's influence in the global economy steadily increased as it

accumulated more members. The number of IMF member countries has more than
quadrupled from the 44 states involved in its establishment, reflecting in particular
the attainment of political independence by many developing countries and more
recently the collapse of the Soviet bloc. The expansion of the IMF’s membership,
together with the changes in the world economy, has required the IMF to adapt in
a variety of ways to continue serving its purposes effectively.

In 2008, faced with a shortfall in revenue, the International Monetary Fund's

executive board agreed to sell part of the IMF's gold reserves. On April 27, 2008,
IMF Managing Director Dominique Strauss-Kahn welcomed the board's decision
April 7, 2008 to propose a new framework for the fund, designed to close a
projected $400 million budget deficit over the next few years. The budget proposal
includes sharp spending cuts of $100 million until 2011 that will include up to 380
staff dismissals.

At the 2009 G-20 London summit, it was decided that the IMF would require
additional financial resources to meet prospective needs of its member countries
during the ongoing global crisis. As part of that decision, the G-20 leaders pledged

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to increase the IMF's supplemental cash tenfold to $500 billion, and to allocate to
member countries another $250 billion via Special Drawing Rights.

OBJECTIVES:

 To avoid the competitive devaluation and exchange control.

 To establish and maintain currency convertibility.

 To develop multilateral trade and payments.

 To promote international monetary co-operation through a permanent

institute.

 To facilitate the expansion of balanced growth of international trade.

 To provide exchange stability.

 To maintain orderly exchange arrangements among members and to avoid

competitive exchange depreciation.

 To assist in the establishment of a multilateral system of payments in

respect of current transactions.

 To lend confidence to members by making the funds resources available to

them under adequate safeguards.

 To shorten the duration and lessen the degree of disequilibrium in the

international balance of payments of members.

FUNCTIONS:

 Guardian of good conduct’ in the area of Balance of payments.

 Reducing tariffs and other trade restrictions.

 Provides technical advice.

 Provides short term financial assistance to its member countries.

 Provides machinery for orderly adjustment of exchange rates.

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  Reservoir of currencies.

 Lending institution of foreign currencies.

 Machinery for altering the par values of the currency of a member country.

 International consultancy.

 Conducts research studies and publishes report.

ROLE OF IMF:

The work of the IMF is of three main types. Surveillance involves the monitoring
of economic and financial developments, and the provision of policy advice,
aimed especially at crisis-prevention. The IMF also lends to countries with balance
of payments difficulties, to provide temporary financing and to support policies
aimed at correcting the underlying problems; loans to low-income countries are
also aimed especially at poverty reduction. Third, the IMF provides countries with
technical assistance and training in its areas of expertise. Supporting all three of
these activities is IMF work in economic research and statistics.

1. IMF SURVEILLANCE

The IMF is mandated to oversee the international monetary system and monitor
the economic and financial policies of its 185 member countries. This activity is
known as surveillance. During this process, which takes place both at the global
level and in individual countries, the IMF highlights possible risks to domestic and
external stability and advises on needed policy adjustments. In this way, it helps
the international monetary system serve its essential purpose of facilitating the
exchange of goods, services, and capital among countries, thereby sustaining
sound economic growth.

a. Why is IMF surveillance important?

In today's globalize economy, where the policies of one country typically affect
many other countries, international cooperation is essential. The IMF, with its
nearly-universal membership of 185 countries, facilitates this cooperation. There
are two main aspects to the IMF’s work: multilateral surveillance or oversight of
the world economy; and bilateral surveillance, which comprises appraisal of and
advice on the policies of each member country.

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 b. Country surveillance

IMF economists monitor members’ economies on a continuous basis, and

regularly—usually once a year—visit member countries to exchange views with
the government and central bank. The focus is on whether there are risks to
domestic and external stability that argue for adjustments in economic or financial
policies. During their mission, IMF staff also often meets with other stakeholders,
such as parliamentarians and representatives of business, labor unions, and civil
society to help evaluate the country’s economic policies and direction. Upon its
return to headquarters, the mission submits a report to the IMF’s Executive Board
for discussion. The Board’s views are subsequently transmitted to the country’s
authorities.

In recent years, surveillance has become increasingly transparent. Almost all

member countries now agree to publication of a Public Information Notice, which
summarizes the views of IMF staff and the Executive Board. In nine out of ten
cases, the staff report and other accompanying analysis is also published on the
IMF’s website.

c. Multilateral surveillance

The IMF continuously reviews global and regional economic trends. Its key
instruments of global and regional surveillance are two semi-annual publications,
the World Economic Outlook (WEO) and the Global Financial Stability Report
(GFSR). The WEO provides detailed analysis of the state of the world economy,
addressing issues of pressing interest, such as the current global financial turmoil
and economic downturn. The GFSR provides an up-to-date assessment of global
financial markets and prospects and highlights imbalances and vulnerabilities that
could pose risks to financial market stability. The IMF also publishes Regional
Economic Outlook reports, providing more detailed analysis for five major
regions.

Sometimes the IMF will draw attention to specific inter-linkages in the global
economy, with the option of conducting multilateral consultations to foster debate
and develop policy actions as a means to address problems of systemic or regional
importance as was done in 2006-07 on global economic imbalances.

d. The evolution of IMF surveillance and its role today

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Surveillance in its present form was established by Article IV of the IMF’s Articles
of Agreement, as revised in the late 1970s following the collapse of the Bretton
Woods system of fixed exchange rates. Under Article IV, member countries
undertake to collaborate with the IMF and with one another to promote the
stability of the global system of exchange rates. In particular, they commit to
running their domestic and external economic policies in keeping with a mutually
agreed code of conduct. For its part, the IMF is charged with (i) overseeing the
international monetary system to ensure its effective operation, and (ii) monitoring
each member's compliance with its policy obligations. To ensure that surveillance
remains effective, the IMF is constantly reviewing its policy framework.

e. Strengthening the policy framework for surveillance

In June 2007, the policy framework of surveillance received its first major update
since the 1970s, with the adoption of the Decision on Bilateral Surveillance over
Members’ Policies. The Decision clarifies:

• That country surveillance should be focused on assessing whether countries’

policies promote external stability. That means that surveillance should mainly
focus on monetary, fiscal, financial, and exchange rate, policies and assess risks
and vulnerabilities;

• What is and what is not acceptable to the international community in terms of

how countries conduct their exchange rate policies; and

• That surveillance should be collaborative, candid, and evenhanded, taking into

account countries’ specific circumstances.

In order to strengthen implementation, a set of guidelines were published in

August 2008. In these guidelines, the Managing Director proposes the use of “ad
hoc consultations” on exchange rates to supplement the usual consultation
procedures.

f. Strengthening the practice of surveillance

Surveillance needs to evolve with the global economy. For example, the current
financial crisis has shown the need for deeper analysis of the linkages between the
real economy and the financial sector. Building on the Financial Sector
Assessment Program (FSAP), financial sector issues are receiving greater
coverage under surveillance and analytical tools for integrating financial sector
and capital markets analysis into macroeconomic assessments are being
developed. In their advice to individual countries, IMF staff seeks to leverage
cross-country experiences and policy lessons, drawing on the organization’s

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unique vantage point as a global financial institution. Spillovers of members’
policies on other members’ economies also receive particular attention in staff
analysis, and the IMF has been sharpening its exchange rate assessments.

2. IMF LENDING:

A core responsibility of the IMF is to provide loans to member countries

experiencing balance of payments problems. This financial assistance enables
countries to rebuild their international reserves; stabilize their currencies; continue
paying for imports; and restore conditions for strong economic growth while
undertaking policies to correct the underlying problems. Unlike development
banks, the IMF does not lend for specific projects.

a. When can a country borrow from the IMF?

A member country may request IMF financial assistance if it has a balance of

payments need—that is, if it cannot find sufficient financing on affordable terms to
meet its net international payments. An IMF loan provides a cushion that eases the
adjustment policies and reforms that a country must make to correct its balance of
payments problem and restore conditions for strong economic growth.

b. The changing nature of IMF lending

The volume of loans provided by the IMF has fluctuated significantly over time.
The oil shock of the 1970s and the debt crisis of the 1980s were both followed by
sharp increases in IMF lending. In the 1990s, the transition process in Central and
Eastern Europe and the crises in emerging market economies led to further surges
of demand for IMF resources. Deep crises in Latin America kept demand for IMF
resources high in the early 2000s, but these loans were largely repaid as conditions
improved. IMF lending rose again starting in late 2008, as a period of abundant
capital flows and low pricing of risk gave way to global deleveraging in the wake
of the financial crisis in advanced economies.

c. The process of IMF lending

Upon request by a member country, an IMF loan is usually provided under an

“arrangement”, which stipulates the specific policies and measures a country has
agreed to implement to resolve its balance of payments problem. The economic
program underlying an arrangement is formulated by the country in consultation
with the IMF and is presented to the Fund’s Executive Board in a “Letter of

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Intent.” Once an arrangement is approved by the Board, the loan is usually
released in phased installments as the program is implemented.

d. IMF Facilities

Over the years, the IMF has developed various loan instruments, or facilities, that
are tailored to address the specific circumstances of its diverse membership. Low-
income countries may borrow at a concessional interest rate through the Poverty
Reduction and Growth Facility (PRGF) and the Exogenous Shocks Facility (ESF).
Non-concessional loans are provided mainly through Stand-By Arrangements
(SBA), the Flexible Credit Line (FCL) for members with very strong policies and
policy framworks, and the Extended Fund Facility (which is useful primarily for
low-income members). The IMF also provides emergency assistance to support
recovery from natural disasters and conflicts, in some cases at concessional
interest rates.

Except for the PRGF and the ESF, all facilities are subject to the IMF’s market-
related interest rate, known as the “rate of charge,” and large loans carry a
surcharge. The rate of charge is based on the SDR interest rate, which is revised
weekly to take account of changes in short-term interest rates in major
international money markets. The amount that a country can borrow from the Fund
—its access limit—varies depending on the type of loan, but is typically a multiple
of the country’s IMF quota. This limit may be exceeded in exceptional
circumstances. The Flexible Credit Line has no pre-set cap on access.

Poverty Reduction and Growth Facility (PRGF) and Exogenous Shocks Facility
(ESF). PRGF-supported programs for low-income countries are underpinned by
comprehensive country-owned strategies, delineated in their Poverty Reduction
Strategy Papers (PRSPs). The ESF, which was modified in September 2008 to
make it more flexible and increase access levels, aims to meet the needs of low-
income member countries for rapid shock assistance with streamlined
conditionality. The interest rate levied on PRGF and ESF loans is only 0.5 percent,
and loans are to be repaid over a period of 5½–10 years.

Stand-By Arrangements (SBA). The bulk of Fund assistance is provided through

SBAs. The SBA is designed to help countries address short-term balance of
payments problems. The length of a SBA is typically 12–24 months, and
repayment is due within 3¼-5 years of disbursement. SBAs may be provided on a
precautionary basis—where countries choose not to draw upon approved amounts
but retain the option to do so if conditions deteriorate—both within the normal
access limits and in cases of exceptional access. The SBA provides for flexibility
with respect to phasing, with front-loaded access where appropriate.

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Flexible Credit Line (FCL). The FCL is for countries with very strong
fundamentals, policies, and track records of policy implementation and is
particularly useful for crisis prevention purposes. FCL arrangements are approved
for countries meeting pre-set qualification criteria. The length of the FCL is 6
months or 1 year (with a mid-term review). Access is determined on a case-by-
case basis, is not subject to the normal access limits, and is available in a single
up-front disbursement rather than phased. Disbursements under the FCL are not
conditioned on implementation of specific policy understandings as is the case
under the SBA. There is flexibility to draw on the credit line at the time it is
approved, or it may be treated as precautionary.

Extended Fund Facility (EFF). This facility was established in 1974 to help
countries address longer-term balance of payments problems requiring
fundamental economic reforms. Arrangements under the EFF are thus longer than
SBAs—usually 3 years. Repayment is normally expected within 4½–7 years.
Surcharges apply to high levels of access.

Emergency assistance. The IMF provides emergency assistance to countries that

have experienced a natural disaster or are emerging from conflict. Emergency
loans are subject to the basic rate of charge, although interest subsidies are
available for PRGF-eligible countries, subject to availability. Loans must be repaid
within 3¼–5 years.

3. TECHNICAL ASSISTANCE:

IMF technical assistance supports the development of the productive resources of

member countries by helping them to effectively manage their economic policy
and financial affairs. The IMF helps these countries to strengthen their capacity in
both human and institutional resources, and to design appropriate macroeconomic,
financial, and structural policies.

a. Who benefits from IMF technical assistance?

Technical assistance is one of the benefits of IMF membership. About 90 percent

of IMF technical assistance goes to low and lower-middle income countries. Post-
conflict countries are also major beneficiaries. Apart from the immediate benefit to
recipient countries, by helping individual countries reduce weaknesses and
vulnerabilities, technical assistance also contributes to a more robust and stable
global economy. Further, technical assistance provided to emerging and
industrialized economies in select cutting-edge areas helps provide traction to IMF
policy advice, and keeps the institution up-to-date on innovations and risks to the
international economy.

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 b. Integration of technical assistance with IMF surveillance and lending

Technical assistance contributes to the effectiveness of the IMF's surveillance and

lending programs, and is an important complement to these other core IMF
functions. Specialized technical assistance from the IMF helps build capacity in
countries for effective policymaking, including in support of surveillance or
lending operations. Conversely, surveillance and lending work results in policy
and other experiences that further inform and strengthen the IMF's technical
assistance program according to international best practices. In view of these
linkages, achieving greater integration between technical assistance, surveillance,
and lending operations is a key priority for the IMF.

c. In what areas does the IMF provide technical assistance?

The IMF provides technical assistance in its areas of core expertise:

macroeconomic policy, tax policy and revenue administration, expenditure
management, monetary policy, the exchange rate system, financial sector
sustainability, and macroeconomic and financial statistics. In particular, efforts in
recent years to strengthen the international financial system have triggered
additional demands for IMF technical assistance. For example, countries have
asked for help to address financial sector weaknesses identified within the
framework of the joint IMF-World Bank Financial Sector Assessment Program;
adopt and adhere to international standards and codes for financial, fiscal, and
statistical management; implement recommendations from off-shore financial
centers assessments; and strengthen measures to combat money laundering and the
financing of terrorism.

At the same time, there is a continuing demand for technical assistance to help
low-income countries build capacity to design and implement poverty-reducing
and growth programs, and to help heavily indebted poor countries undertake debt
sustainability analyses and manage debt-reduction programs. The IMF also
contributes actively to the Integrated Framework for trade-related technical
assistance, which aims to assist low-income countries expand their participation in
the global economy.

d. How is technical assistance provided?

The recipient country is fully involved in the entire process of technical assistance,
from identification of need, to implementation, monitoring, and evaluation.

The IMF delivers technical assistance in various ways. Depending on the nature of
the assignment, support is often provided through staff missions of limited

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duration sent from headquarters, or the placement of experts and/or resident
advisors for periods ranging from a few weeks to a few years. Assistance might
also be provided in the form of technical and diagnostic studies, training courses,
seminars, workshops, and "on-line" advice and support.

The IMF has increasingly adopted a regional approach to the delivery of technical
assistance and training. It operates six regional technical assistance centers—in the
Pacific; the Caribbean; East, West and Central Africa; and in the Middle East. In
May 2009, the IMF opened a new center in Central America, and it is planning to
open three additional regional centers—in Central Asia, and two further centers in
Africa. In addition to training offered at the IMF Institute in Washington D.C., the
IMF also offers courses, workshops, and seminars for country officials through a
network of seven regional training institutes and programs.

The regional centers will be complemented by technical assistance financed

through topical trust funds. A first such fund was will start operations in May
2009, concentrating on institution building in connection with anti-money
laundering and combating the financing of terrorism.

e. How is technical assistance paid for?

Technical assistance accounts for about one-fifth of the IMF's operating budget. It
is financed by both internal and external resources, the latter comprising funds
from bilateral and multilateral donors. Such cooperation and resource sharing with
external donors has a few benefits: it leverages the internal resources available for
technical assistance; helps avoid duplication of advice by different donors, and
strengthens collaboration with donors and other technical assistance providers.

Bilateral donors to the IMF's technical assistance program include Australia,

Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany,
India, Ireland, Italy, Japan, the Republic of Korea, Luxembourg, the Netherlands,
New Zealand, Norway, Portugal, Russia, Singapore, Sweden, Switzerland, the
United Kingdom, and the United States. Multilateral donors include the African
Development Bank, the Arab Monetary Fund, the Asian Development Bank, the
European Commission, the Inter-American Development Bank, the United
Nations, the United Nations Development Program (UNDP), and the World Bank.
In FY 2008, external financing accounted for approximately a fifth of the IMF's
total technical assistance budget.

MEMBERSHIP QUALIFICATIONS:

Any country may apply for membership to the IMF. The application will be
considered first by the IMF's Executive Board. After its consideration, the

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Executive Board will submit a report to the Board of Governors of the IMF with
recommendations in the form of a "Membership Resolution." These
recommendations cover the amount of quota in the IMF, the form of payment of
the subscription, and other customary terms and conditions of membership. After
the Board of Governors has adopted the "Membership Resolution," the applicant
state needs to take the legal steps required under its own law to enable it to sign
the IMF's Articles of Agreement and to fulfill the obligations of IMF membership.
Similarly, any member country can withdraw from the Fund, although that is rare.
For example, in April 2007, the president of Ecuador, Rafael Correa announced
the expulsion of the World Bank representative in the country. A few days later, at
the end of April, Venezuelan president Hugo Chavez announced that the country
would withdraw from the IMF and the World Bank. Chavez dubbed both
organizations as “the tools of the empire” that “serve the interests of the North”.
As of June 2009, both countries remain as members of both organizations.
Venezuela was forced to back down because a withdrawal would have triggered
default clauses in the country's sovereign bonds.

A member's quota in the IMF determines the amount of its subscription, its voting
weight, its access to IMF financing, and its allocation of Special Drawing Rights
(SDRs). The United States has exclusive veto power. A member state cannot
unilaterally increase its quota — increases must be approved by the Executive
Board and are linked to formulas that include many variables such as the size of a
country in the world economy. For example, in 2001, China was prevented from
increasing its quota as high as it wished, ensuring it remained at the level of the
smallest G7 economy (Canada).[11] In September 2005, the IMF's member
countries agreed to the first round of ad hoc quota increases for four countries,
including China. On March 28, 2008, the IMF's Executive Board ended a period of
extensive discussion and negotiation over a major package of reforms to enhance
the institution's governance that would shift quota and voting shares from
advanced to emerging markets and developing countries. The Fund's Board of
Governors must vote on these reforms by April 28, 2008. See "Reform of IMF
Quotas and Voice: Responding to Changes in the Global Economy" at
www.imf.org.

CRITICISM

"The interests of the IMF represent the big international interests that seem to be
established and concentrated in Wall Street." — Che Guevara, Marxist
revolutionary, 1959
Two criticisms from economists have been that financial aid is always bound to
so-called "Conditionality", including Structural Adjustment Programs. It is
claimed that conditionality (economic performance targets established as a
precondition for IMF loans) retard social stability and hence inhibit the stated

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goals of the IMF, while Structural Adjustment Programs lead to an increase in
poverty in recipient countries.

One of the main SAP conditions placed on troubled countries is that the
governments sell up as much of their national assets as they can, normally to
western corporations at heavily discounted prices.

That said, the IMF sometimes advocates "austerity programmes," increasing taxes
even when the economy is weak, in order to generate government revenue and
balance budget deficits, which is Keynesian policy. Countries are often advised to
lower their corporate tax rate. These policies were criticized by Joseph E. Stiglitz,
former chief economist and Senior Vice President at the World Bank, in his book
Globalization and Its Discontents. He argued that by converting to a more
Monetarist approach, the fund no longer had a valid purpose, as it was designed to
provide funds for countries to carry out Keynesian reflations, and that the IMF
"was not participating in a conspiracy, but it was reflecting the interests and
ideology of the Western financial community."

Argentina, which had been considered by the IMF to be a model country in its
compliance to policy proposals by the Bretton Woods institutions, experienced a
catastrophic economic crisis in 2001, which some believe to have been caused by
IMF-induced budget restrictions — which undercut the government's ability to
sustain national infrastructure even in crucial areas such as health, education, and
security — and privatization of strategically vital national resources. Others
attribute the crisis to Argentina's misdesigned fiscal federalism, which caused sub
national spending to increase rapidly. The crisis added to widespread hatred of this
institution in Argentina and other South American countries, with many blaming
the IMF for the region's economic problems. The current — as of early 2006 —
trend towards moderate left-wing governments in the region and a growing
concern with the development of a regional economic policy largely independent
of big business pressures has been ascribed to this crisis.

Another example of where IMF Structural Adjustment Programmes aggravated the

problem was in Kenya. Before the IMF got involved in the country, the Kenyan
central bank oversaw all currency movements in and out of the country. The IMF
mandated that the Kenyan central bank had to allow easier currency movement.
However, the adjustment resulted in very little foreign investment, but allowed
Kamlesh Manusuklal Damji Pattni, with the help of corrupt government officials,
to siphon off billions of Kenyan shillings in what came to be known as the
Goldenberg scandal, leaving the country worse off than it was before the IMF
reforms were implemented.[citation needed] In an interview, the former Romanian
Prime Minister Tăriceanu stated that "Since 2005, IMF is constantly making
mistakes when it appreciates the country's economic performances".

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Overall the IMF success record is perceived as limited. While it was created to
help stabilize the global economy, since 1980 critics claim over 100 countries (or
reputedly most of the Fund's membership) have experienced a banking collapse
that they claim have reduced GDP by four percent or more, far more than at any
time in Post-Depression history. The considerable delay in the IMF's response to
any crisis, and the fact that it tends to only respond to them or even create them
rather than prevent them, has led many economists to argue for reform. In 2006, an
IMF reform agenda called the Medium Term Strategy was widely endorsed by the
institution's member countries. The agenda includes changes in IMF governance to
enhance the role of developing countries in the institution's decision-making
process and steps to deepen the effectiveness of its core mandate, which is known
as economic surveillance or helping member countries adopt macroeconomic
policies that will sustain global growth and reduce poverty. On June 15, 2007, the
Executive Board of the IMF adopted the 2007 Decision on Bilateral Surveillance,
a landmark measure that replaced a 30-year-old decision of the Fund's member
countries on how the IMF should analyze economic outcomes at the country level.

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Table showing the top 20 member countries in terms of voting power:
IMF Quota: Votes:
Quota: % of Alternate Votes:
Member Millions Governor % of
Total Governor Number
Country of SDRs Total
United Timothy F.
States 37149.3 17.09 Geithner Ben Bernanke 371743 16.79

Japan 13312.8 6.13 Koji Omi Toshihiko Fukui 133378 6.02

Axel A.
Germany 13008.2 5.99 Weber Peer Steinbrück 130332 5.88
Christine
France 10738.5 4.94 Lagarde Christian Noyer 107635 4.86
United Alistair
Kingdom 10738.5 4.94 Darling Mervyn King 107635 4.86
Zhou
China 8090.1 3.72 Xiaochuan Hu Xiaolian 81151 3.66
Giulio
Italy 7055.5 3.25 Tremonti Mario Draghi 70805 3.2
Saudi Ibrahim A. Al- Hamad Al-
Arabia 6985.5 3.21 Assaf Sayari 70105 3.17

Canada 6369.2 2.93 Jim Flaherty Mark Carney 63942 2.89

Russian Aleksei
Federation 5945.4 2.74 Kudrin Sergey Ignatiev 59704 2.7
Netherland L.B.J. van
s 5162.4 2.38 Nout Wellink Geest 51874 2.34
Jean-Pierre
Belgium 4605.2 2.12 Guy Quaden Arnoldi 46302 2.09
Pranab
India 4158.2 1.91 Mukherjee D. Subbarao 41832 1.89
Switzerlan Jean-Pierre Hans-Rudolf
d 3458.5 1.59 Roth Merz 34835 1.57

Australia 3236.4 1.49 Wayne Swan Ken Henry 32614 1.47

Agustín
Mexico 3152.8 1.45 Carstens Guillermo
Miguel Ortiz 31778 1.43
Fernández
Spain 3048.9 1.4 Pedro Solbes Ordóñez
Henrique de 30739 1.39
Guido Campos
Brazil 3036.1 1.4 Mantega Meirelles 30611 1.38
Korea,
South 2927.3 1.35 Okyu Kwon Seong Tae Lee 29523 1.33
Gastón Parra Rodrigo Cabeza
Venezuela 2659.1 1.22 Luzardo Morales 26841 1.21

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CONCLUSION:

The IMF is the world’s central organization for international monetary

cooperation. With 185 member countries, it is an organization in which almost all
of the countries in the world work together to promote the common good. The
IMF’s primary purpose is to safeguard the stability of the international monetary
system—the system of exchange rates and international payments that enables
countries (and their citizens) to buy goods and services from each other. This is
essential for achieving sustainable economic growth and raising living standards.
All of the IMF’s member countries are represented on its executive Board, which
discusses the national, regional, and global consequences of each member’s
economic main activities of the IMF include
• providing advice to members on adopting policies that can help them prevent or
resolve a financial crisis, achieve macroeconomic stability, accelerate economic
growth, and alleviate poverty;
• making financing temporarily available to member countries to help them
address balance of payments problems—that is, when they find themselves short
of foreign exchange because their payments to other countries exceed their foreign
exchange earnings; and
• offering technical assistance and training to countries at their request, to help
them build the expertise and institutions they need to implement sound economic
policies.
The iMF is headquartered in Washington, D.C., and, reflecting its global reach and
close ties with its members, also has offices around the world.

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