International Monetary Fund - Wikipedia
Fund (IMF) has defied the odds in its relations with the administration of US President Donald Trump. → In contrast to the administration's at times stormy ride . Finally, are the IMF and World Bank simply tools of American foreign policy, as is institutions: international monetary relations and economic development. The US Congress is now considering legislation to approve President Obama's of the IMF's role in the international monetary system, its relationship to US.
Committee for the Abolition of Illegitimate Debt
In fact, in order to understand the influence and development of these organizations during their first few decades, it is more useful to talk about a "Bretton Woods system" rather than dissecting the specific institutional histories of the IMF and World Bank. The agencies themselves were both anemic and ineffective during their early years. For example, the World Bank was established in order to aid postwar European reconstruction but was quickly supplanted when the United States established the European Recovery Plan and the Marshall Plan.
Only later did it embrace the mission of funding development, infrastructure, and anti-poverty programs in the underdeveloped countries of the world.
- Related Experts
- User Contributions:
The IMF was similarly pushed to the side during its early years, as bilateral negotiations, currency blocs like those for sterling and the francor Marshall Plan institutions such as the European Payments Union drove postwar international monetary relations. Still, while the IMF and World Bank were moribund for some time, and are not particularly influential in the early twenty-first century, the Bretton Woods agreements did set down certain "rules of the game" that, if not always enforced by the IMF and World Bank, certainly have animated much of the spirit of international economic activity since World War II.
Furthermore, in spite of their weaknesses, it is important to remember that at the time of their inception, the idea of creating such multilateral economic institutions was truly revolutionary.
The logic behind these organizations and their mission emerged from a powerful if sometimes flawed causal and historical logic. After the economic collapse of the s and destructive war of the s, the conventional wisdom held that unfettered capitalism was unstable, prone to crisis, and unfair in its international distribution of wealth.
Just as the U. Depression and war had ushered in a profound shift in the relationship between governments, national economies, and the global economic order by the time representatives of forty-four nations met at Bretton Woods, New Hampshire, in July Before World War I, international monetary relations were not considered the province of national governments.
Rarely did any entity intervene in foreign exchange markets, and when one did, it was nongovernmental banks such as the House of Morgan or the still private Bank of England. There were several attempts at monetary cooperation and collaboration among international private bankers during the late nineteenth century, but it was sporadic.
And while the idea of providing aid to rebuild the devastated, war-torn economies had been considered after World War I, the notion of a permanent international bank to guide global efforts to increase living standards and eliminate global poverty was truly remarkable. One criticism is, however, quite justified.
This indicates that IMF lending does not impose a burden on creditor countries, as lending countries receive market-rate interest on most of their quota subscription, plus any of their own-currency subscriptions that are loaned out by the IMF, plus all of the reserve assets that they provide the IMF.
This led to the devaluation of national currencies and a decline in world trade.Indian Economy On 'Very Solid Track': International Monetary Fund Chief
The representatives of 45 governments met at the Bretton Woods Conference in the Mount Washington Hotel in Bretton Woods, New Hampshirein the United States, to discuss a framework for postwar international economic co-operation and how to rebuild Europe. There were two views on the role the IMF should assume as a global economic institution.
American delegate Harry Dexter White foresaw an IMF that functioned more like a bank, making sure that borrowing states could repay their debts on time.
British economist John Maynard Keynes imagined that the IMF would be a cooperative fund upon which member states could draw to maintain economic activity and employment through periodic crises. The increase reflected in particular the attainment of political independence by many African countries and more recently the dissolution of the Soviet Union because most countries in the Soviet sphere of influence did not join the IMF.
International Monetary Fund and World Bank
This is known as the Nixon Shock. Since [ edit ] The IMF provided two major lending packages in the early s to Argentina during the — Argentine great depression and Uruguay after the Uruguay banking crisis.
Property taxes are equitable and efficient, but underutilized in many economies There is considerable scope to exploit this tax more fully, both as a revenue source and as a redistributive instrument. The former Czechoslovakia was expelled in for "failing to provide required data" and was readmitted inafter the Velvet Revolution. Poland withdrew in —allegedly pressured by the Soviet Union —but returned in Members needed to make periodic membership payments towards their quota, to refrain from currency restrictions unless granted IMF permission, to abide by the Code of Conduct in the IMF Articles of Agreement, and to provide national economic information.
However, stricter rules were imposed on governments that applied to the IMF for funding.