Report on the Imf -

S.e.a & R. B.

The International Monetary Fund was founded by a Treaty and was applied after the devastation of the Second World War in 1945 in order to support and promote a solid world economy. Today, this institution has its headquarters in Washington and is governed by 184 member States.

The IMF is an international financial institution, such institutions need to be created by several countries. The World Bank is very similar to the IMF, both institutions have been created in order to help Third World countries as well as the developed ones when facing financial difficulties and to manage the global financial economy. Additionally, the Fund’s resources mainly come from the capital paid in when the countries became members of the institution. The IMF, like companies, has an internal organization, in fact, the institution has a Managing Director whom is also the Chairman of the “Executive Board”. In addition to that, because of the difficulties and criticism the institution faced in the past (see below), the IMF recently adopted a new strategy in terms of lending money. The Fund now keeps a close eye on its future ability to give loans by “monitoring its one-year forward commitment capacity, which gives an indication of resources available”. This change made them even more reliable.

First of all, after the horrors of WWII, the European economies were broken down and, apart from the Marshall Plan, there was a need to create an institution which would allow these countries to rebuild their economies. The IMF was officially established at a conference held in Bretton Woods (New Hampshire), where a total of 44 members of the United Nations attended and it was that day that the IMF Constitution was written.

As anticipated, the foundation of the International Monetary Fund has played an extremely important role in reviving and reshaping the global economy. However, throughout the years, this international institution has been subject to many criticisms due to the...