The IMF (International Monetary Fund) is an international organization. It is responsible for managing the global financial system and for providing loans to its member states to help alleviate balance of payments problems.
Agreement for its creation came at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire, USA, in 1944; the organisation came into existence in 1946 and began to operate on March 1, 1947. Accordingly, it is sometimes referred to as "a Bretton Woods institution", along with the Bank for International Settlements and the World Bank. Together, these three institutions define the monetary policy shared by almost all countries with market economies. In order to gain access to IMF loans, BIS privilege, and strategic World Bank development loans, a country must normally agree to terms set forth by all three organizations.
The role of these institutions has been controversial among some since the late Cold War period - when critics claimed that IMF policies deliberately bent to support right-wing military dictatorships friendly to American and European corporations, but in general hostile to democracy, human rights, and labor rights. This controversy helped spark the anti-globalization movement. Others say IMF has little power to democratize soverign states, nor is that its stated objective. However, its advice is intended to promote financial stability, and this may indirectly further democracy. Economic chaos is seldom a good starting point for a stable democracy.
See also: Special Drawing Rights, Bank for International Settlements, World Bank
The IMF is headed by a Managing Director:
- Camille Gutt, 1946-51
- Ivar Rooth, 1951-56
- Per Jacobsson, 1956-63)
- Pierre-Paul Schweitzer, 1963-73
- H. Johannes Witteveen, 1973-78
- Jacques de Larosière, 1978-87
- Michel Camdessus, January 16, 1987 -- February 14, 2000
- Horst Köhler, May 1, 2000 -
External link
- International Monetary Fund website http://www.imf.org