Agreement Of International Monetary Fund

The Inter­na­tion­al Mon­e­tary Fund (IMF) is an inter­na­tion­al orga­ni­za­tion based in Wash­ing­ton, D.C., com­pris­ing 190 coun­tries work­ing to pro­mote glob­al mon­e­tary coop­er­a­tion, finan­cial sta­bil­i­ty, facil­i­tate inter­na­tion­al trade, pro­mote high employ­ment and sus­tain­able eco­nom­ic growth and reduce pover­ty around the world. , while it reg­u­lar­ly depends on the World Bank for its resources. [1] Found­ed in 1944 at the Bret­ton Woods Con­fer­ence pri­mar­i­ly through the ideas of Har­ry Dex­ter White and John May­nard Keynes,[7] it was for­mal­ly found­ed in 1945 with 29 mem­ber coun­tries and with the goal of recon­sti­tut­ing the inter­na­tion­al pay­ment sys­tem. It now plays a cen­tral role in man­ag­ing bal­ance-of-pay­ments dif­fi­cul­ties and inter­na­tion­al finan­cial crises. [8] Coun­tries con­tribute to the pool­ing of a quo­ta sys­tem from which coun­tries with bal­ance-of-pay­ments prob­lems can bor­row mon­ey. In 2016[update], the fund had XDR 477 bil­lion (approx­i­mate­ly $667 bil­lion). [9] The ODI‘s con­clu­sions have been that the nature and unless­ness of the IMF in pro­mot­ing mar­ket-based approach­es has led to inevitable crit­i­cism. On the oth­er hand, the IMF could serve as a scape­goat and allow gov­ern­ments to blame inter­na­tion­al bankers. The ODI acknowl­edged that the IMF was insen­si­tive to the LDC‘s polit­i­cal aspi­ra­tions, while its polit­i­cal con­di­tions were inflexible.

[125] 2. If the remain­ing com­mit­ment as a result of the Arti­cle XXIV com­mit­ment, Sec­tion 2, Point b), is open to the Fund and is not agreed with­in six months of the clos­ing date, the ter­mi­nat­ing mem­ber will com­ply with­in three years of the end or with­in the longer peri­od set by the Fund. The ter­mi­nat­ing par­tic­i­pant ful­fils this oblig­a­tion, for exam­ple: (a) by pay­ing a cur­ren­cy freely usable to the Fund, or b) by obtain­ing spe­cial draw­ing rights in accor­dance with Arti­cle XXIV, Sec­tion 6, of the Gen­er­al Resource Account, or in agree­ment with a par­tic­i­pant des­ig­nat­ed by the Fund or anoth­er hold­er, and by com­pen­sat­ing for these spe­cial draw­ing rights. The IMF was one of the main orga­ni­za­tions in the inter­na­tion­al eco­nom­ic sys­tem; Its design has allowed the sys­tem to rec­on­cile the recon­struc­tion of inter­na­tion­al cap­i­tal­ism with the max­i­miza­tion of nation­al eco­nom­ic sov­er­eign­ty and human well-being, also known as inte­grat­ed lib­er­al­ism. [20] The IMF‘s influ­ence on the glob­al econ­o­my has steadi­ly increased as it has accu­mu­lat­ed more mem­bers. This increase reflects, among oth­er things, the achieve­ment of polit­i­cal inde­pen­dence by many African coun­tries and, more recent­ly, the dis­so­lu­tion of the Sovi­et Union in 1991, because most coun­tries in the Sovi­et sphere of influ­ence have not been approved by the IMF. [33] The Fund has the right at all times to com­mu­ni­cate, infor­mal­ly, to each Mem­ber its views on all issues raised by this Agree­ment. The Fund may decide, by a major­i­ty of 70% of the vote, to pub­lish a report to a mem­ber on its mon­e­tary or eco­nom­ic con­di­tions and devel­op­ments, which direct­ly leads to a seri­ous imbal­ance in the inter­na­tion­al bal­ance of pay­ments of members.