was founded as the International Monetary Fund (IMF), together with its sister institution the World Bank in July 1944 at the Bretton Woods Conference. The Washington-based fund monitored as a specialized agency of the United Nations concerning the monetary policies of its 186 member countries. Each country must pay a deposit as a share of the global economy and has corresponding voting rights. The richest countries therefore have the greatest impact.
The IMF publicly occurs especially in financial and economic crises in appearance. By supporting individual States, it is primarily intended to prevent spread crises and whole regions or even take the entire international financial system. The Fund may compensate for short-term loans, the deficits in developing and emerging countries. In addition, it provides Member States technical assistance for the reconstruction of institutions and in the design of financial and economic policy.
The conditions that be linked to the allocation of funds, however, encounter in the affected countries and globalization critics often displeasure. Be prescribed by the Institution of Washington most radical cuts in state budgets, the opening of markets and privatization. This, however, exacerbate crises According to critics often further. For reform is now provided that the IMF reinforces respect the social impact of crises and relief efforts.
Since the end of June 2011, the former French Finance Minister Christine Lagarde stands at the IMF tip. She is the first woman to hold the post.
The IMF Executive Board consists of 24 directors. Five of them are appointed by the Member States with the largest quotas, the remaining represent each of several member states. The more a country pays, the higher its quota. Therefore, the US has a voting share of nearly 17 percent, Japan by just over six and Germany just under six percent. The USA has a blocking minority. For central decisions in the IMF – and the election of the next Executive Director – must be taken by a majority of 85 percent. Select
The directors of the Managing Director. He is responsible for the daily operations of the organization and the personnel policy of the Fund. The Director is controlled by the Executive Board, this may deprive him of the administration. Policy decisions will be made by the Board of Governors of the IMF and the International Monetary and Financial Committee, who come together in the fall and spring meetings of the IMF and World Bank.
The US and Europe have informally agreed to divide up important positions with each other. So is the US, traditionally the Director of the World Bank, while the Managing Director of the IMF is provided by an EU member country. The statutes of this scheme is not docked. In particular, the emerging penetrate for years that the informal agreement is tilted with the post of director is announced.
The IMF is working with the state of a program specific guidelines to overcome the crisis includes, for example, requirements for budgetary policy. The credit facilities are usually split into several tranches, with payments linked to the achievement of milestones. Are usual credit terms of up to three years which may be extended but in severe crises. The tarnished country puts his savings plan in detail open. If necessary, subsequent changes are possible.
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