International Monetary Fund

of these articles describes IWF, to the International Monetary Fund; for the IWF knowledge and media gGmbH see there.

The International Monetary Fund (contraction IWF; English: Internationally Monetary find, IMF) is a special organization of the United Nations. It is one Sister organization of the World Bank - group and has its seat in Washington D.C., The USA.

Head office of the IWF in Washington D.C.

The IWF became to 22. July 1944 by an international agreement based and took up its work in May 1946.It took place due to the resolutions of the conference in Bretton Woods, a town in the US Federal State New Hampshire. These negotiations crucial for the reconstruction of the world economic system lasted from the 1. July 1944 up to 22. July 1944.

The IWF becomestherefore together with the World Bank - group as Bretton Woods institution marks.

To its tasks belong: Promotion of the international cooperation in the monetary policy, expansion of the world trade, stabilization of rates of exchange, granting of credit, monitoring of the monetary policy, technical aid.

The IWF has to time of 184 member countries, their right to voteon its Kapitalanteil depends. The being correct portions of the most important member states:The USA 17.08%, Japan 6.13%, Germany 5.99%, France 4.95%, Great Britain and Northern Ireland 4.95%. The 25 European Union members have altogether 31,89% of the voices; the twelve euro-states over22,91%. The USA have thereby officially a check minority. (Source in addition:IMF.)

table of contents

organization

of organs

  • board of governors
  • of international currency and financial committee (IMFC)
  • to executive board of directors
  • internal evaluation committee

of the IWF has about 2,680 coworkers andWoman employees from 184 countries

acting directors

of the IWF one leads by a “acting director” (Managing Director). In accordance with an agreement between the USA and some Western European countries the director of the IWF is always a European, while the influentialUsually position of the first deputy director (roofridge Deputy Managing Director) is occupied by an American.

Acting directors:

deputy one acting directors:

Deputy acting directors are to time:

  • Roofridge Deputy Managing Director Anne O. Krueger (since 1. September 2001)
  • Deputy Managing Director Agustín Carstens
  • Deputy Managing Director Takatoshi Kato

(conditions: 12. December2005)


tasks and a goal

if a member in pecuniary difficulties come, then it can stress assistance with the IWF. The accounting unit of the IWF is the special drawing rights (SZR).

The IWF assigns limited credits under certain editions at states, undereconomic problems suffer, z. B.Argentina, Turkey or Brazil. Conditions for the grant from credits are for example: Shortening the public expenditures, low inflation, increase of the export, as well as the liberalisation of the bank nature. Those the states imposedConditions in the form of structural adjustment programs of SAP know for example privatisation of public mechanisms such as savings banks, electricity and water supply, telecommunications etc. as well as dismissal of certain groups of coworkers plan.

Beyond that the IWF supports developing countries in Africa, Asia and South Americawith the development of growth and prosperity concepts and this promotes by direct financial assistance of the giving member countries. Just as the granting of credit are also development assistance often at conditions of the Good Governance (corruption dismantling, democracy,…) and the liberalisation coupled.

goals

  • Promotion of lasting development assistance projects through Grants and Liabilities.
  • Promotion of the international cooperation in the monetary policy.
  • Expansion of the world trade.
  • Stabilization of international financial markets.
  • Short term credits can assign, to the reconciliation of payment deficits
  • monitoring of the monetary policy.
  • The current international exchange of national restrictions of theto keep free free foreign exchange traffic.
  • Technical aid

as tries to achieve the IWF these goals?

Each member country gets a ratio in such a way specified assigned. On this ratio depend:

  • the deposit obligations (in gold, foreign exchange and national currency)
  • the drawing rights (demand upa credit)
  • the right to vote of a country in the IWF

if a country in pecuniary difficulties, it comes financial can stress assistance of the IWF (recourse to of a credit). They can buy the currency of another country on request with the IWF against gold or national currency.One calls this drawing. The recourse to of a credit is coupled at certain conditions, which the respective country has to fulfill. These are called structural adjustment programs (SAP).

SAP could z. B. thus look:

  • Shortening of public expenditures.
  • A goal of a lowInflation and an increase of the export.
  • Liberalisation of the bank nature.
  • Privatisation of public mechanisms (savings banks, power stations, water companies, telecommunications); further consequences: e.g. Dismissal of coworkers.

There are so-called special drawing rights (SZR) since 1969. A member country has the right, itself under engagement of the IWFTo buy foreign exchange. For the foreign exchange the member country must pay in response with SZR. With the SZR it concerns a kind world money in the exchange of the central banks.

  • SZR are assigned in certain height.
  • For the SZR interest must onthe rear to be paid.
  • The international liquidity is considerably extended by the SZR.
  • With each increase of the SZR is examined whether world-wide a inflation-neutral need exists.

Example:If z. B. Turkey (developing country) to the IWF turns, there itfor the reconciliation of the passive balance of payments on current account needs foreign exchange, then the IWF determines a country - for example the USA - with high foreign exchange reserves. The USA sells thereupon Turkey foreign exchange against SZR.

Konditionalität

original was in such a way laid out the IWF,that the member states with presence of appropriate conditions (e.g.Balance of payments problems) automatically the right had to receive IWF credits. After the Korea war the prices for raw materials collapsed however, which led to appropriate balance of payments crises in individual member states. This time the Konditionalität becameintroduced, i.e. the appropriate states did not have no more the right to IWF credits, on the contrary them dependent made on the fulfilment of certain conditions, at that time e.g. the Elimination of exchange controls and the liberalisation of trade restrictions. Also the partitioning of the credit purchase inindividual phases one introduced for the first time, with credits at Chile in the year 1956, at Haiti in the year 1958. Each individual phase was made dependent on conditions on the fulfilment, which had to be fulfilled during the previous phase. Such conditions became inthe respective declaration of intent (“type character OF intent “), which practically contract nature had, before fixed.

Konditionalität was an initiative of the USA, which was rejected first by other states. These states stood on the position that the right to IWF credits automaticallyto the governments concerned be entitled, completely in the spirit of the “Articles OF Agreement “, the establishment document of the IWFs.

The Executive Director of the USA inserted to be veto , if IWF credit requests did not correspond to this idea of the Konditionalität. This led to the fact that itself IWF credit applicantsno more to the IWF, but first to the USA did not turn. Thus the Konditionalität was introduced to IWF practice.

Washington consent

the measures, which the IWF demands from the governments request-placing, are usually always the same,independently of the concrete situation of the national economies concerned. These are summarized under the name Washington Consensus.

applicants for the credit

up to the year 1977 were developing countries such as industrialized countries relatively equally applicants for the credit of the IWF, Great Britain one of the largest applicants for the credit. Up to thenthe Konditionalität was not used opposite Great Britain (Great Britain was one of the establishment states of the IWF). That changed however after the repeated devaluation of the Sterlings, for the first time should the IWF for the State of Great Britain substantial conditions such as decrease of social security benefitsand abolishment of import controls impose, when it placed 1977 a request because of a Stand-By-Kredites. That led to it that starting from this time of the IWF as the “last instance, to which one should turn because of credits” regarded there this interferenceinto national (economics) policy by other governments (in particular the USA, which meant the Treasury William Simon in the form of Secretary OF that countries would break such as Great Britain a “international code of practice” with their economic policy it is very unpopularly regarded) than. Sinceno more industrial nation had set a request to this time to IWF credits.

In opinion of geo count IE professor Richard Peet the IWF changed itself only thereby of a form of co-operation in view to rates of exchange and international payments, mainly between that Industrialized countries took place, to a form of control of the economic policy of the “third world “by the” first world “.

criticism

of the IWF was relevant to the dollar - coupling Argentine peso takes part. Thereupon this second largest turned outCountry of South America into an economic crisis. The role of the IWF is regarded particularly critically during the Eastern Asia crisis 1997. The programs of the IWF contributed not to the rapid solution of the crisis, but these still intensified. Give because of some similar situationsthe Bretton Woods institutions more frequently cause for arguments with some circles of the economy and policy, particularly if it concerns developing countries. Among other things “Bretton Woods “became also the target of the globalization criticism, the Zapatistas was here one first,against neoliberale policy protested.

To document criticized under the criteria of development assistance above all that the IWF arranges its programs after the Zahlungsbereitschaft of the giver countries, instead of the need and then in Europe, the USA and Japan the appropriateTo call in amounts.

The moreover becomes, particularly from NGOs like for example Attac, which criticizes coupled obligation to the privatisation of elements of the public precaution for existence to the credit grant, since the countries concerned give thereby national control up of these politics rangesmust. According to the critics no or too little domestic capital exists, in order to be able to denationalize for example the water supply or the training system on one's own in the debtor countries in all rule, so that these ranges then under control more internationally Investors fall; often from the USA or from the European Union, which are bent opposite their capitals owner responsible and therefore only few, on the problems of its host countries consideration to take (see also: Cochabamba). Beyond that become the net yield flow off from the investment in the future from the countries concerned, which would have an attenuation from their domestic market to the consequence.

refuge charcoal burner

in the year 2000 was for the first time a German with refuge charcoal burner to the point of theIWF arrives. (At that time Red-Green) the Federal Government had first tried to intersperse the financial undersecretary of state at that time Caio cook Weser thereby however because of the resistance in particular the USA had failed. Thereupon the Federal Government decided, CDU - member refuge charcoal burner to nominate. Its candidacy was thenalso successfully. It gave to be selected already speculations around a second term of office, when refuge charcoal burner withdrew in March 2004, in order afterwards on suggestion by Angela Merkel and Guido Westerwelle to the German Federal President.

Successor at the point of the IWF becamethe former Spanish minister of economics Rodrigo Rato. It could itself thereby against a number of further candidates (under it the Spaniard José Manuel González Páramo, the Belgian Peter Praet and the Irish Michael Tutty) intersperse. Caio cook Weser had rejected a renewed candidacy.

ThoseCharcoal burner the IWF Interimsdirektorin Anne Krueger led office business during the search for a successor for refuge.

literature

see also

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