Agreement Of The International Monetary Fund

IMF conditionality is a series of guidelines or conditions that the IMF needs in exchange for financial resources. [19] While requiring guarantees from countries for loans, the IMF also requires the government to seek support to correct its macroeconomic imbalances in the form of policy reforms. [28] If the conditions are not met, the credits are retained. [19] [29] The concept of conditionality was introduced in 1952 in a decision of the Executive Committee and then incorporated into the statutes. The method of valuation of the special drawing right shall be defined by the Fund by a majority of seventy per cent of all voting rights, provided, however, that a change in the valuation principle or a fundamental change in the application of the principle in force requires a majority of eighty-five per cent of all voting rights. 38 While the assignment clauses are provided for in Art. I of the IMF Agreement make no reference to capital movements and authorizes Article VI to restrict capital movements, states, in the language of the preamble to the new Art. IV, that an “essential objective” of the international monetary system is to create a framework that facilitates capital exchange. Within the framework of this Agreement, the Fund shall cooperate with all general international organisations and international public service organisations which have specialised expertise in related fields. Such cooperation agreements, which would entail an amendment to a provision of this Agreement, may be concluded only after amendment of this Agreement in accordance with Article XXVIII.

The ODI`s findings showed that the IMF`s nature to promote market-oriented approaches has drawn inevitable criticism. On the other hand, the IMF could serve as a scapegoat while allowing governments to blame international bankers. The ODI acknowledged that the IMF was insensitive to the political aspirations of the least developed countries, while its political conditions were inflexible. [125] The IMF`s mandate is to supervise the international monetary and financial system and to monitor the economic and financial policies of its member countries. [23] This activity is called surveillance and facilitates international cooperation. [24] Since the end of the Bretton Woods system in the early 1970s, surveillance has developed largely through procedural changes and not through the acceptance of new commitments. [23] Responsibilities are changed from those of the guardian to those of the supervisor of member directives. The International Monetary Fund (IMF) is an international organization based in Washington, D.C., composed of 190 countries that work to promote global monetary cooperation, financial stability, international trade facilitation, promote high employment and sustainable economic growth, and reduce poverty around the world. while they regularly depend on the World Bank for their resources.

[1] In 1944, at the Bretton Woods Conference, founded mainly on the ideas of Harry Dexter White and John Maynard Keynes,[7] it was born in 1945 with 29 member countries and the goal of rebuilding the international payment system. . . .