International Monetary Fund
The International Monetary Fund (IMF) dates from the 1944 Bretton Woods Agreement[1] when representatives of 45 governments agreed on a framework for economic cooperation designed to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s.[2]
At the same time as the IMF was created, the International Bank for Reconstruction and Development (IBRD), more commonly known as the World Bank, was set up to promote long-term economic development, including through the financing of infrastructure projects, such as road-building and improving water supply.[ibid]
When the IMF and World Bank were established, an organization to promote world trade liberalization was also contemplated, but it was not until 1995 that the World Trade Organization was set up. In the intervening years, trade issues were tackled through the General Agreement on Tariffs and Trade (GATT). [ibid]
Article I of the Articles of Agreement sets out the IMF's main responsibilities:[3]
- promoting international monetary cooperation;
- facilitating the expansion and balanced growth of international trade;
- promoting exchange stability;
- assisting in the establishment of a multilateral system of payments; and
- making its resources available (under adequate safeguards) to members experiencing balance of payments difficulties.
More generally, the IMF is responsible for ensuring the stability of the international monetary and financial system--the system of international payments and exchange rates among national currencies that enables trade to take place between countries. The Fund seeks to promote economic stability and prevent crises; to help resolve crises when they do occur; and to promote growth and alleviate poverty. It employs three main functions--surveillance, technical assistance, and lending--to meet these objectives.[ibid]
"Research shows clearly that the policies prescribed by the IMF have, among other things, not produced strong or sustainable growth; opened countries, communities and families to new vulnerabilities; exacerbated inequalities, which puts a brake on growth, stresses political systems to the breaking point, and engenders new and powerful forms of criminality and social tension.
Bolivia has been a model student of such "reforms", and is now also a showcase for the contradictions and crisis these policies engender." [4] The IMF "supports the rapid conclusion of obscure deals made by un-transparent multinationals and unaccountable politicians, deals in which it is impossible for people to evaluate or have a choice." observes researcher Tom Kruse in LaPaz.[5]
- Nancy P. Jacklin, U.S. Executive Director, International Monetary Fund
Other Related SourceWatch Resources
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- globalization
- Timeline to Global Governance 1800 to 1969
- U.S. Department of the Treasury