BPH 4th year International Heath IMF

2. The International Monetary Fund (IMF) is an
organization of 189 countries working
to promote international financial stability
and monetary cooperation.
• foster global monetary cooperation,
• secure financial stability,
• facilitate international trade,
• promote high employment,
• sustainable economic growth
& reduce poverty.
Established in - 1945
Headquarter -Washington, D.C.

3. $ 1 trillion – total amount the IMF is able to lend to its
member countries.
0% - interest rate on loan to low economic countries.
The Fund's mandate was updated in 2012 to include all
macroeconomic and financial sector issues that bear on
global stability.

4. History:
• Why the IMF was created and how it works :
The IMF, also known as the Fund, was conceived at
a UN conference in Bretton Woods, New
Hampshire, United States, in July 1944.
The 44 countries at that conference sought to build
a framework for economic cooperation to avoid a
repetition of the competitive devaluations that had
contributed to the Great Depression of the 1930s.
The IMF has played a part in shaping the global
economy since the end of World War II.

5. • Cooperation and Reconstruction (1944–71)
:
As the Second World War ends, the job of
rebuilding national economies begins. The IMF
is charged with overseeing the international
monetary system to ensure exchange rate
stability and encouraging members to eliminate
exchange restrictions that hinder trade.

6. • The End of the Bretton Woods System
(1972–81):
After the system of fixed exchange rates
collapses in 1971, countries are free to choose
their exchange arrangement. Oil shocks occur in
1973–74 and 1979, and the IMF steps in to help
countries deal with the consequences.

7. • Debt and Painful Reforms (1982–89) :
The oil shocks lead to an international debt
crisis, and the IMF assists in coordinating the
global response.
• Societal Change for Eastern Europe and
Asian Upheaval (1990–2004) :
The IMF plays a central role in helping the
countries of the former Soviet bloc transition
from central planning to market-driven
economies.

8. • Globalization and the Crisis (2005 - present)
:
The implications of the continued rise of capital
flows for economic policy and the stability of the
international financial system are still not entirely
clear.
The current credit crisis and the food and oil
price shock are clear signs that new challenges
for the IMF are waiting just around the corner.

9. Highlights
• Sustainable Development goal
The IMF is committed to the SDGs, and is
supporting its members in their implementation
in areas relevant to its mandate of financial
stability and sustainable and inclusive economic
growth. At a broad level, IMF engagement on the
SDGs is aligned with the five SDG pillars of people,
prosperity, planet, peace, and partnership.

10. Highlights
• IMF Giving Together
It is the IMF’s corporate giving program which
supports employees’ giving back to the
community, both locally and internationally.
It encompasses:
(i) staff Giving (previously Helping Hands);
(ii) disaster relief appeals;
(iii) management donations;
(iv) grants to local and international charities; and
(v) staff volunteering activities.

11. Highlights
• Low-Income Countries
The IMF provides broad support to low-income countries
(LICs) through surveillance and capacity-building activities,
as well as concessional financial support to help them
achieve, maintain, or restore a stable and sustainable
macroeconomic position consistent with strong and
durable poverty reduction and growth.

12. • Gender and Economics
It dictates the facts like, Female labor force
participation being lower than male
participation.
High gender wage gaps between male and
female.
Similarly,
In rapidly aging economies, higher female
labor force participation can boost growth by
mitigating the impact of a shrinking workforce.

13. Quota:
It determine the maximum
amount of financial
resources a member is
obliged to provide to the
IMF.

14. Components of IMF :
1. Board of Governors
• Each member country appoints its two governors.
• Board normally meets once a year
• It is responsible for appointing executive directors to the
Executive Board.
• While the Board of Governors is officially responsible for
approving quota increases.

15. 2. Executive Board
• 24 Executive Directors make up the Executive Board.
• The Executive Directors represent all 189 member
countries in a geographically based roster.
• Countries with large economies have their own
Executive Director
• seven countries each appoint an Executive Director: the
United States, Japan, China, Germany, France, the
United Kingdom, and Saudi Arabia.
• The Board membership and constituency is scheduled
for periodic review every eight years.[65]

16. 3. Managing Director
The IMF is led by a managing director, who is head of
the staff and serves as Chairman of the Executive
Board.
The managing director is assisted by a First Deputy
managing director and three other Deputy Managing
Directors.
Previous MD - Dominique
Strauss-Kahn
• was arrested in connection with
charges of sexually assaulting NY
hotel room attendant and resigned
on 18 May.
Current Managing Director (MD)
- Christine Lagarde
• MD for a five-year term starting on 5
July 2011.
• re-elected by consensus for a second
five-year term, starting 5 July 2016

17. Functions Of IMF :
•Surveillance
•Lending
•Capacity building

18. Surveillance
The IMF oversees the international monetary system
and monitors the economic and financial policies of
its 189 member countries.
As part of this process, which takes place at the
global, regional, and country levels, the IMF
identifies potential risks to stability and recommends
appropriate policy adjustments needed to sustain
economic growth and promote financial and
economic stability.

19. Lending
The IMF provides loans to member countries
experiencing actual or potential balance of payments
problems to help them rebuild their international
reserves, stabilize their currencies, continue paying
for imports, and restore conditions for strong
economic growth, while correcting underlying
problems.
It 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.

20. Capacity building
The IMF works with governments around the world
to modernize their economic policies and
institutions, and provide technical assistance and
training to their people. This helps countries
strengthen their economy, improve growth and
create jobs.