Managing Director of the Managing Director of the International Monetary Fund International Monetary Fund

Dominique Strauss-Kahn

HISTORYHISTORY

Formally created in July 1944 during Formally created in July 1944 during the United Nations Monetary and the United Nations Monetary and Financial ConferenceFinancial Conference

Formally organized on December 27, Formally organized on December 27, 1945. France became the first country 1945. France became the first country to officially borrow from the IMF to officially borrow from the IMF

OVERVIEWOVERVIEWOrganization of 185 countriesOrganization of 185 countriesThe IMF works to foster global growth and The IMF works to foster global growth and

economic stability. It provides policy economic stability. It provides policy advice and financing to members in advice and financing to members in economic difficulties and also works with economic difficulties and also works with developing nations to help them achieve developing nations to help them achieve macroeconomic stability and reduce macroeconomic stability and reduce poverty.poverty.

ROLESROLES Stabilize exchange rates and assist the Stabilize exchange rates and assist the

reconstruction of the world's international reconstruction of the world's international payment system payment system

Working to foster global monetary cooperation Working to foster global monetary cooperation Secure financial stability Secure financial stability Facilitate international trade Facilitate international trade Promote high employment and sustainable Promote high employment and sustainable

economic growth economic growth Reduce poverty Reduce poverty

KEY EVENTSKEY EVENTS

The Bretton Woods AgreementThe Bretton Woods Agreement

The IMF was conceived in July 1944, when The IMF was conceived in July 1944, when representatives of 45 countries meeting in the representatives of 45 countries meeting in the town of Bretton Woods, New Hampshire, in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a northeastern United States, agreed on a framework for international economic framework for international economic cooperation, to be established after the Second cooperation, to be established after the Second World WarWorld War. .

KEY EVENTSKEY EVENTSIMF CriticismIMF Criticism

They have experienced wide spread criticism in They have experienced wide spread criticism in the fact that it seems as when the IMF steps in the fact that it seems as when the IMF steps in to help a country, the matters are only worsenedto help a country, the matters are only worsened

Argentina, 2001- economic crisis caused by IMF Argentina, 2001- economic crisis caused by IMF budget restrictions budget restrictions

Kenya- The IMF mandated that the Kenyan Kenya- The IMF mandated that the Kenyan central bank had to allow easier currency central bank had to allow easier currency movement, allowing for Kamlesh Manusuklal movement, allowing for Kamlesh Manusuklal Damji Pattni, and a few government officials to Damji Pattni, and a few government officials to siphon off billions of Kenyan Shillings in the siphon off billions of Kenyan Shillings in the Goldenberg ScandalGoldenberg Scandal

KEY EVENTSKEY EVENTS

Par value systemPar value system The countries that joined the IMF between 1945 The countries that joined the IMF between 1945

and 1971 agreed to keep their exchange rates and 1971 agreed to keep their exchange rates pegged at rates that could be adjusted only to pegged at rates that could be adjusted only to correct a "fundamental disequilibrium" in the correct a "fundamental disequilibrium" in the balance of payments, and only with the IMF's balance of payments, and only with the IMF's agreement agreement

Stayed in place until 1971, when the US Stayed in place until 1971, when the US government suspended the convertibility of the government suspended the convertibility of the dollar to golddollar to gold

Financial BaseFinancial Base The IMF has three main sources of funding:The IMF has three main sources of funding:1.1. Loan repayments (interest charges) from Loan repayments (interest charges) from

debtor countries debtor countries 2.2. Gold reservesGold reserves3.3. Requested resources from its shareholders Requested resources from its shareholders Their budget was recently tripled to $1 trillion Their budget was recently tripled to $1 trillion

dollars at the 2009 G-20 London Summitdollars at the 2009 G-20 London Summit