International Monetary Fund

1930

This view suggested an IMF that helped governments and to act as the United States government had during the New Deal to the great recession of the 1930s. The IMF formally came into existence on 27 December 1945, when the first 29 countries ratified its Articles of Agreement.

1941

Activities 1941–1946: Shaping the Post-War World: Bretton Woods and Reparations, Cambridge, 1980. Moschella, M.

1944

Formed in 1944, started in 27 November 1945, at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system.

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. ==History== ===20th century=== The IMF was originally laid out as a part of the Bretton Woods system exchange agreement in 1944.

1945

Formed in 1944, started in 27 November 1945, at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system.

This view suggested an IMF that helped governments and to act as the United States government had during the New Deal to the great recession of the 1930s. The IMF formally came into existence on 27 December 1945, when the first 29 countries ratified its Articles of Agreement.

The IMF in a Changing World, 1945–85, International Monetary Fund, 1986. James, H.

1946

By the end of 1946 the IMF had grown to 39 members.

1947

On 1 March 1947, the IMF began its financial operations, and on 8 May France became the first country to borrow from it. The IMF was one of the key organizations of the international economic system; its design allowed the system to balance the rebuilding of international capitalism with the maximisation of national economic sovereignty and human welfare, also known as embedded liberalism.

1950

Their role became a lot more active because the IMF now manages economic policy rather than just exchange rates. In addition, the IMF negotiates conditions on lending and loans under their policy of conditionality, which was established in the 1950s.

Poland withdrew in 1950—allegedly pressured by the Soviet Union—but returned in 1986. ===Qualifications=== Any country may apply to be a part of the IMF.

Another study has suggested that since 1950 the continent of Africa alone has received $300 billion from the IMF, the World Bank, and affiliate institutions. A study by Bumba Mukherjee found that developing democratic countries benefit more from IMF programs than developing autocratic countries because policy-making, and the process of deciding where loaned money is used, is more transparent within a democracy.

1952

The concept of conditionality was introduced in a 1952 Executive Board decision and later incorporated into the Articles of Agreement. Conditionality is associated with economic theory as well as an enforcement mechanism for repayment.

1954

However, Andorra became the 190th member on 16 October 2020. The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and was readmitted in 1990, after the Velvet Revolution.

1964

All members of the IMF are also International Bank for Reconstruction and Development (IBRD) members and vice versa. Former members are Cuba (which left in 1964), and the Republic of China (Taiwan), which was ejected from the IMF in 1980 after losing the support of then United States President Jimmy Carter and was replaced by the People's Republic of China.

1970

Since the demise of the Bretton Woods system of fixed exchange rates in the early 1970s, surveillance has evolved largely by way of changes in procedures rather than through the adoption of new obligations.

Later in the 1970s, large commercial banks began lending to states because they were awash in cash deposited by oil exporters.

However, by the mid-2000s, IMF lending was at its lowest share of world GDP since the 1970s. In May 2010, the IMF participated, in 3:11 proportion, in the first Greek bailout that totalled €110 billion, to address the great accumulation of public debt, caused by continuing large public sector deficits.

The resulting division of the IMF's membership into borrowers and non-borrowers has increased the controversy around conditionality because the borrowers are interested in increasing loan access while creditors want to maintain reassurance that the loans will be repaid. ==Use== A recent source revealed that the average overall use of IMF credit per decade increased, in real terms, by 21% between the 1970s and 1980s, and increased again by just over 22% from the 1980s to the 1991–2005 period.

1971

The increase reflected in particular the attainment of political independence by many African countries and more recently the 1991 dissolution of the Soviet Union because most countries in the Soviet sphere of influence did not join the IMF. The Bretton Woods exchange rate system prevailed until 1971, when the United States government suspended the convertibility of the US$ (and dollar reserves held by other governments) into gold.

1973

This criticism was voiced in the aftermath of the 1973 oil crisis.

1976

The changes to the IMF articles of agreement reflecting these changes were ratified by the 1976 Jamaica Accords.

1977

Portuguese musician José Mário Branco's 1982 album FMI is inspired by the IMF's intervention in Portugal through monitored stabilisation programs in 1977–78.

1980

The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance. ===21st century=== The IMF provided two major lending packages in the early 2000s to Argentina (during the 1998–2002 Argentine great depression) and Uruguay (after the 2002 Uruguay banking crisis).

All members of the IMF are also International Bank for Reconstruction and Development (IBRD) members and vice versa. Former members are Cuba (which left in 1964), and the Republic of China (Taiwan), which was ejected from the IMF in 1980 after losing the support of then United States President Jimmy Carter and was replaced by the People's Republic of China.

The resulting division of the IMF's membership into borrowers and non-borrowers has increased the controversy around conditionality because the borrowers are interested in increasing loan access while creditors want to maintain reassurance that the loans will be repaid. ==Use== A recent source revealed that the average overall use of IMF credit per decade increased, in real terms, by 21% between the 1970s and 1980s, and increased again by just over 22% from the 1980s to the 1991–2005 period.

Activities 1941–1946: Shaping the Post-War World: Bretton Woods and Reparations, Cambridge, 1980. Moschella, M.

1982

A particular concern of the IMF was to prevent financial crises such as those in Mexico in 1982, Brazil in 1987, East Asia in 1997–98, and Russia in 1998, from spreading and threatening the entire global financial and currency system.

Portuguese musician José Mário Branco's 1982 album FMI is inspired by the IMF's intervention in Portugal through monitored stabilisation programs in 1977–78.

1986

Poland withdrew in 1950—allegedly pressured by the Soviet Union—but returned in 1986. ===Qualifications=== Any country may apply to be a part of the IMF.

The IMF in a Changing World, 1945–85, International Monetary Fund, 1986. James, H.

1987

A particular concern of the IMF was to prevent financial crises such as those in Mexico in 1982, Brazil in 1987, East Asia in 1997–98, and Russia in 1998, from spreading and threatening the entire global financial and currency system.

1990

However, Andorra became the 190th member on 16 October 2020. The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and was readmitted in 1990, after the Velvet Revolution.

Its purpose was to place some sensible rules and limits on the way the IMF makes loans to support governments with debt problem—especially in emerging markets—and thereby move away from the bailout mentality of the 1990s.

1991

The increase reflected in particular the attainment of political independence by many African countries and more recently the 1991 dissolution of the Soviet Union because most countries in the Soviet sphere of influence did not join the IMF. The Bretton Woods exchange rate system prevailed until 1971, when the United States government suspended the convertibility of the US$ (and dollar reserves held by other governments) into gold.

The resulting division of the IMF's membership into borrowers and non-borrowers has increased the controversy around conditionality because the borrowers are interested in increasing loan access while creditors want to maintain reassurance that the loans will be repaid. ==Use== A recent source revealed that the average overall use of IMF credit per decade increased, in real terms, by 21% between the 1970s and 1980s, and increased again by just over 22% from the 1980s to the 1991–2005 period.

1995

Indeed, it was at this number that the Greek economy melted down in 2010. In 1995 the International Monetary Fund began to work on data dissemination standards with the view of guiding IMF member countries to disseminate their economic and financial data to the public.

1996

The International Monetary and Financial Committee (IMFC) endorsed the guidelines for the dissemination standards and they were split into two tiers: The General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS). The executive board approved the SDDS and GDDS in 1996 and 1997 respectively, and subsequent amendments were published in a revised Guide to the General Data Dissemination System.

International Monetary Cooperation since Bretton Woods, Oxford, 1996. Joicey, N.

1997

A particular concern of the IMF was to prevent financial crises such as those in Mexico in 1982, Brazil in 1987, East Asia in 1997–98, and Russia in 1998, from spreading and threatening the entire global financial and currency system.

The International Monetary and Financial Committee (IMFC) endorsed the guidelines for the dissemination standards and they were split into two tiers: The General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS). The executive board approved the SDDS and GDDS in 1996 and 1997 respectively, and subsequent amendments were published in a revised Guide to the General Data Dissemination System.

1998

A particular concern of the IMF was to prevent financial crises such as those in Mexico in 1982, Brazil in 1987, East Asia in 1997–98, and Russia in 1998, from spreading and threatening the entire global financial and currency system.

The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance. ===21st century=== The IMF provided two major lending packages in the early 2000s to Argentina (during the 1998–2002 Argentine great depression) and Uruguay (after the 2002 Uruguay banking crisis).

2000

The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance. ===21st century=== The IMF provided two major lending packages in the early 2000s to Argentina (during the 1998–2002 Argentine great depression) and Uruguay (after the 2002 Uruguay banking crisis).

John Maynard Keynes: Fighting for Britain, London, 2000. Truman, E.

2002

The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance. ===21st century=== The IMF provided two major lending packages in the early 2000s to Argentina (during the 1998–2002 Argentine great depression) and Uruguay (after the 2002 Uruguay banking crisis).

Collective action clauses, which now exist in most—but not all—bonds would be relied upon to address collective action problems." ==Impact== According to a 2002 study by Randall W.

2003

One study done by Randall Stone found that although earlier studies found little impact of IMF programs on balance of payments, more recent studies using more sophisticated methods and larger samples "usually found IMF programs improved the balance of payments". ===Exceptional Access Framework – sovereign debt=== The Exceptional Access Framework was created in 2003 when John B.

The new Framework became fully operational in February 2003 and it was applied in the subsequent decisions on Argentina and Brazil.

2005

No insured deposit of €100k or less were to be affected under the terms of a novel bail-in scheme. The topic of sovereign debt restructuring was taken up by the IMF in April 2013 for the first time since 2005, in a report entitled "Sovereign Debt Restructuring: Recent Developments and Implications for the Fund's Legal and Policy Framework".

Since 2005, Zambia (as well as 29 other African countries) did receive debt write-offs, which helped with the country's medical and education funds.

2006

The Globalizers: The IMF, the World Bank, and Their Borrowers, Ithaca, 2006 Woods, Ngaire and Lombardi, Domenico.

2007

Former Tanzanian President Julius Nyerere, who claimed that debt-ridden African states were ceding sovereignty to the IMF and the World Bank, famously asked, "Who elected the IMF to be the ministry of finance for every country in the world?" Former chief economist of IMF and former Reserve Bank of India (RBI) Governor Raghuram Rajan who predicted the Financial crisis of 2007–08 criticised the IMF for remaining a sideline player to the developed world.

2008

Countries with large economies have their own Executive Director, but most countries are grouped in constituencies representing four or more countries. Following the 2008 Amendment on Voice and Participation which came into effect in March 2011, seven countries each appoint an Executive Director: the United States, Japan, China, Germany, France, the United Kingdom, and Saudi Arabia.

In October 2008, former United States president Bill Clinton delivered a speech to the United Nations on World Food Day, criticising the World Bank and IMF for their policies on food and agriculture: The FPIF remarked that there is a recurring pattern: "the destabilization of peasant producers by a one-two punch of IMF-World Bank structural adjustment programs that gutted government investment in the countryside followed by the massive influx of subsidized U.S.

2009

As part of the bailout, the Greek government agreed to adopt austerity measures that would reduce the deficit from 11% in 2009 to "well below 3%" in 2014.

and European Union agricultural imports after the WTO's Agreement on Agriculture pried open markets." ===Impact on public health=== A 2009 study concluded that the strict conditions resulted in thousands of deaths in Eastern Europe by tuberculosis as public health care had to be weakened.

2010

Indeed, it was at this number that the Greek economy melted down in 2010. In 1995 the International Monetary Fund began to work on data dissemination standards with the view of guiding IMF member countries to disseminate their economic and financial data to the public.

However, by the mid-2000s, IMF lending was at its lowest share of world GDP since the 1970s. In May 2010, the IMF participated, in 3:11 proportion, in the first Greek bailout that totalled €110 billion, to address the great accumulation of public debt, caused by continuing large public sector deficits.

Changes in the voting shares require approval by a super-majority of 85% of voting power. |} In December 2015, the United States Congress adopted a legislation authorising the 2010 Quota and Governance Reforms.

Reforms to give more powers to emerging economies were agreed by the G20 in 2010.

Governing Risk: The IMF and Global Financial Crises (Palgrave Macmillan; 2010). Skidelsky, R.

Strengthening IMF Surveillance: A Comprehensive Proposal, Policy Brief 10–29, Peterson Institute for International Economics, 2010. Weiss, Martin A.

2011

The maximum sustainable debt level of a polity, which is watched closely by the IMF, was defined in 2011 by IMF economists to be 120%.

The bailout did not include debt restructuring measures such as a haircut, to the chagrin of the Swiss, Brazilian, Indian, Russian, and Argentinian Directors of the IMF, with the Greek authorities themselves (at the time, PM George Papandreou and Finance Minister Giorgos Papakonstantinou) ruling out a haircut. A second bailout package of more than €100 billion was agreed over the course of a few months from October 2011, during which time Papandreou was forced from office.

Countries with large economies have their own Executive Director, but most countries are grouped in constituencies representing four or more countries. Following the 2008 Amendment on Voice and Participation which came into effect in March 2011, seven countries each appoint an Executive Director: the United States, Japan, China, Germany, France, the United Kingdom, and Saudi Arabia.

On 28 June 2011 Christine Lagarde was confirmed as managing director of the IMF for a five-year term starting on 5 July 2011.

Debtocracy, a 2011 independent Greek documentary film, also criticises the IMF.

"The International Monetary Fund and Global Economic Cooperation" in Nicholas Bayne and Stephen Woolcock, The New Economic Diplomacy: Decision-Making and Negotiation in International Relations, (Ashgate Publishing, 2011). Keynes, J.M.

2012

The so-called Troika, of which the IMF is part, are joint managers of this programme, which was approved by the Executive Directors of the IMF on 15 March 2012 for XDR 23.8 billion and saw private bondholders take a haircut of upwards of 50%.

2013

No insured deposit of €100k or less were to be affected under the terms of a novel bail-in scheme. The topic of sovereign debt restructuring was taken up by the IMF in April 2013 for the first time since 2005, in a report entitled "Sovereign Debt Restructuring: Recent Developments and Implications for the Fund's Legal and Policy Framework".

2014

As part of the bailout, the Greek government agreed to adopt austerity measures that would reduce the deficit from 11% in 2009 to "well below 3%" in 2014.

An explanatory interview with Deputy Director Hugh Bredenkamp was published a few days later, as was a deconstruction by Matina Stevis of the Wall Street Journal. The staff was directed to formulate an updated policy, which was accomplished on 22 May 2014 with a report entitled "The Fund's Lending Framework and Sovereign Debt: Preliminary Considerations", and taken up by the Executive Board on 13 June.

2015

Changes in the voting shares require approval by a super-majority of 85% of voting power. |} In December 2015, the United States Congress adopted a legislation authorising the 2010 Quota and Governance Reforms.

The United States has historically been openly opposed to losing what Treasury Secretary Jacob Lew described in 2015 as its "leadership role" at the IMF, and the United States' "ability to shape international norms and practices". Emerging markets were not well-represented for most of the IMF's history: Despite being the most populous country, China's vote share was the sixth largest; Brazil's vote share was smaller than Belgium's.

After repeated criticism, the United States finally ratified the voting reforms at the end of 2015.

Within hours of her conviction, in which she escaped any punishment, the fund's 24-member executive board put to rest any speculation that she might have to resign, praising her "outstanding leadership" and the "wide respect" she commands around the world. Former IMF Managing Director Rodrigo Rato was arrested on 16 April 2015 for alleged fraud, embezzlement and money laundering.

2016

She was re-elected by consensus for a second five-year term, starting 5 July 2016, being the only candidate nominated for the post of Managing Director. === First Deputy Managing Director === The managing director is assisted by a First Deputy managing director who, by convention, has always been a citizen of the United States.

2017

On 23 February 2017, the Audiencia Nacional found Rato guilty of embezzlement and sentenced to 4 years' imprisonment.

2018

Gita Gopinath was appointed as Chief Economist of IMF from 1 October 2018.

(Washington, DC: Congressional Research Service, 24 May 2018). Woods, N.

2019

The quotas are increased periodically as a means of boosting the IMF's resources in the form of special drawing rights. The current Managing Director (MD) and Chairwoman of the IMF is Bulgarian economist Kristalina Georgieva, who has held the post since October 1, 2019.

2020

However, Andorra became the 190th member on 16 October 2020. The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and was readmitted in 1990, after the Velvet Revolution.




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