target
The purpose of the organization is to promote international monetary cooperation through a permanent institution and provide methods for consultation and cooperation on international monetary issues; Through the expansion and balanced development of international trade, the primary goal of economic policy is to promote and maintain the employment, development of production resources and high-level real income of member countries; Stabilize the international exchange rate, maintain orderly exchange rate arrangements among member countries, and avoid competitive exchange rate depreciation; Assist member countries to establish a multilateral payment system for regular transactions and abolish foreign exchange controls that hinder world trade; Under the condition of proper guarantee, the IMF temporarily provides ordinary funds to member countries, so that they are confident to take this opportunity to correct the imbalance of international payments without taking measures that endanger their own or international prosperity; According to the above objectives, we will shorten the time and reduce the imbalance of international payments among member States.
The fund of the organization comes from the share subscribed by each member. Members have the right to draw, that is, to borrow foreign exchange according to a certain proportion of their paid shares. 1969 created the currency (accounting) unit of "Special Drawing Rights" as a supplement to international circulation means to alleviate the international income deficit of some members. Members have the obligation to provide economic information, and accept the supervision of the organization in foreign exchange policy and management, and play a pivotal role in the international monetary system.
IMF history
From 65438 to 0944, the financial conference sponsored by the United Nations was held in Bretton Woods, New Hampshire, USA. On July 22nd, countries signed an agreement to establish the International Monetary Fund at the meeting. The main designers of the International Monetary Fund are Fabian john maynard keynes and US Deputy Treasury Secretary Harry Dexter White. The terms of the agreement were put into practice on February 27th 1945, and the International Monetary Fund was formally established in May 1946, which was part of the post-world war II reconstruction plan and put into operation in March 1947. The International Monetary Fund, the Bank for International Settlements and the World Bank are sometimes called "Bretton Woods institutions". The financial policies of almost all market economy countries are influenced by these three systems.
IMF
The highest authority of the IMF is the board of directors, which consists of 1 chairman and 1 vice-chairman from all members, usually held by finance ministers or central bank governors. A meeting is held in September every year, and each Council independently exercises its voting rights (the voting rights of each country are determined by the amount of funds paid); The executive board of directors is responsible for the daily work and exercises all powers entrusted by the board of directors. It consists of 24 executive directors, six of whom are appointed by the United States, Britain, France, Germany, Japan, Russian Federation, China and Saudi Arabia, and the remaining 16 executive directors are elected by other members of the 16 constituency. China is a separate constituency with only one seat. Executive directors are elected every two years; The managing director is elected by the executive board and is responsible for the business of the International Monetary Fund. The term of office is five years and can be renewed. There are also three vice presidents.
The temporary Committee of the organization is regarded as the decision-making and guiding body of the International Monetary Fund. The Committee will play a full role in policy cooperation and coordination, especially in formulating the medium-term strategy. The Committee consists of 24 executive directors. The International Monetary Fund holds an annual meeting with the World Bank.
membership
The application to join the International Monetary Fund will be first considered by the board of directors of the organization. After that, the Board of Directors will submit a report on the "Members' Resolution" to the Governance Committee, which will suggest how many quotas and terms the applicant country can get in the fund. After the Governance Committee accepts the application, the country needs to amend the law, confirm the signed accession documents and promise to abide by the rules of the IMF.
The "quota" of member countries determines a country's membership dues, voting rights, share of financial assistance and the number of special drawing rights.
China is one of the founding members of the organization. 1980 On April 17, the International Monetary Fund officially resumed the representation of China. China's share in the organization is 3,385.3 million special drawing rights, accounting for 2.34% of the total share. China * * * 34 102 votes, accounting for 2.28% of the total voting rights. After China resumed his seat in the IMF from 1980, he formed a constituency and sent an executive director. 199 1, which established a permanent representative office in Beijing.
IMF is "an organization with 184 countries, which is committed to promoting global financial cooperation, strengthening financial stability, promoting international trade, and assisting countries to achieve high employment rate and sustainable development". Except for North Korea, Liechtenstein, Cuba, Andorra, Monaco, Tuvalu and Nauru, all only United Nations Member States have the right to become members of the Fund directly or indirectly.
Aid and reform
The mission of the International Monetary Fund is to provide assistance to countries in serious economic difficulties. For countries with serious fiscal deficits, the fund may provide financial assistance and even help manage national finances. The recipient countries need to carry out reforms.
criticize
Since the late Cold War, the role of Bretton Woods institutions has been controversial. Some critics point out that the fund favors capitalist military dictators who have good relations with European and American companies. Another criticism is that the IMF does not attach importance to democracy, human rights and labor rights. These criticisms have aroused social discussion and promoted the anti-globalization movement. On the contrary, the IMF's ability to promote national democratization is limited, and its purpose is not to do so. Some supporters point out that economic stability is a prerequisite for democracy.
Some economists criticize that the IMF's economic assistance is "conditional": the recipient countries need to implement the economic reforms recommended by the IMF. Economists believe that this will affect the social stability of the country, but it is actually counterproductive.
Generally speaking, the International Monetary Fund and its supporters admire Keynesianism. Therefore, supporters of the supply school usually oppose the International Monetary Fund. The International Monetary Fund advocates currency devaluation, which is criticized by the supply school and will lead to inflation.
Most organizations that oppose economic globalization, such as ATTAC, believe that the IMF's deepening poverty has also increased the debt burden of third world countries and developing countries.
Organizations opposed to the IMF have different positions. For example, the supply school believes that the policy proposed by ATTAC is almost the same as that of the International Monetary Fund in concept.
Argentina is regarded by the International Monetary Fund as a model country adopting the economic policies put forward by the Bretton Woods institutions. However, in 20001year, the country experienced a catastrophic financial crisis, which many people think was caused by the tight budget and privatization of important resource development projects initiated by the IMF. The tight budget has weakened the government's ability to maintain infrastructure, welfare and education services. The financial crisis in Argentina deepened the antipathy of South American countries to the IMF, and they accused the IMF of being responsible for the economic problems in South America [1]. Affected by the economic crisis in Argentina, South American governments have gradually taken the center-left route, trying to get rid of the pressure of commercial enterprises on economic policies.
Another controversial country is Kenya. Initially, Kenya's central bank controlled the flow of the country's currency, and after the International Monetary Fund provided assistance, it called for the relaxation of monetary policy. After the adjustment, not only did foreign investment decrease sharply, but also Kamlesh Manusuklal Damji Pattni lost billions of Kenyan shillings (for the Goldenberg scandal) due to the corruption of corrupt officials, and Kenya's financial situation was worse than before.
The behavior of the International Monetary Fund (IMF) to mend after the sheep is dead has affected its reputation: usually, when the country is hit hard by the economy, the IMF will lend a helping hand. In fact, the economic problems of these countries are usually the result of decades of mismanagement and are not known to the outside world. Poor management has caused the country to fall into economic difficulties for many years, and the IMF usually provides assistance at this time, so people associate economic collapse with IMF intervention. Criminals are good at diverting attention, using nationalism and people's bad impression of the IMF as scapegoats.
Although the International Monetary Fund was established to help stabilize the global economy, since the 1980s, more than 100 countries have experienced the collapse of their banking systems, resulting in an unprecedented drop in GDP of more than 4%. The IMF's slow response to the crisis and the practice of mending after the sheep is dead have led many economists to propose reforming the IMF.
Although the western society has different opinions about the IMF, the survey of the research center shows that more than 60% of Asians and 70% of Africans believe that the IMF and the World Bank have a "positive" influence on their countries [2].
The documentary Life and Debt critically describes the influence of the policies of the International Monetary Fund on Jamaica.
The difference with the World Bank
The main role of the International Monetary Fund is the auditor, whose job is to record the trade figures and debts between countries, and to preside over the formulation of international monetary and economic policies. As for the World Bank, it mainly provides long-term loans. The World Bank works like an investment bank, issuing bonds to companies, individuals or governments and lending the proceeds to recipient countries.
The International Monetary Fund was established to stabilize the currencies of various countries and supervise the foreign exchange market. Since the IMF is not a bank, it will not lend. However, the International Monetary Fund has reserves for the country to borrow and stabilize the currency in the short term; The practice is similar to current account overdraft. The borrowed money must be repaid within five years.
Successive directors
According to the unspoken rules, the IMF president is from Europe, while the World Bank president is from the United States.
Terms, names and nationalities
Camille Gutt Belgium
195126-27 August
1956 65438+February-65438+May 5, 0963, Jacobson, Sweden
Pierre-Paul Schwaetzer
Johannes witteveen Netherlands
Jacques de la Rossier, France
February 2000 to 10, michel camdessus.
May 2000 1 day-March 4, 2004, horst koehler.
From March 4, 2004 to May 4, 2004, Anne Kruger of the United States (appointment, informal)
May 4th, 2004-Rodrigo de Rato and Figaredo.
Major publications
World Economic Outlook, International Financial Statistics (monthly), Overview of the International Monetary Fund (weekly), Balance of Payments Statistics (monthly) and Yearbook of Government Financial Statistics.