Among other "gifts" of the Bretton Woods system in 1944, was founded by the International Monetary Fund, which plays a significant role in the modern world.To the organization among the participating countries and international analysts is very ambiguous, and to understand the place in the financial system of the world it takes, should study it carefully.
The objectives and functions of the International Monetary Fund
being created in the period of active hostilities in the fields of World War II, the International Monetary Fund was designed to restore and strengthen the economy after its completion.A huge contribution to the creation of this organization have Dzh.M.Keyns British economist and a spokesman for the US G.D.Uayt, developed the framework for the prevention of economic crises arising from the use of devaluations.
To date, the International Monetary Fund - a specialized financial-credit organization with a membership of 184 countries.In order to understand what created this fund, we need only to list its main objectives:
- regulation of balanced economic growth;
- maintaining a stable exchange rate;
- prevent the so-called"Competitive devaluation";
- giving money and advice to resolve balance of payments problems of a certain state.
To implement their World Monetary Fund actually performs the following actions:
- monitors the financial activities of Member States;
- on the basis of the data obtained is developing recommendations to address deficiencies and to prevent violations of the existing financial management system;
- if necessary, provides technical assistance through the preparation of highly qualified personnel in the field of management of the economy;
- provides loans.
The latter is by far the most important function becausetogether with the receipt of funds the debtor country will be obliged to implement all the recommendations on optimization of the state budget.
the International Monetary Fund - the structure and funding
For the organization, including most of the world, quite characteristic is the presence of the management structure.It occupies a dominant place special Board of Governors.The aim of its activities is the development of tactics permission emerging or existing problems.But the immediate implementation of Governing Council decision lies with the Executive Committee.This body consists of 24 members, eight of whom are permanent and 16 are on a rotating basis every two years.
World Monetary Fund also has two important committees - the International Monetary and Financial (IMFC) and the Development Committee.The first examines the issues related only to the state of the foreign exchange market (see. Goal 2 and 3), and the second is directing its efforts to assist developing countries.And last, it is worth mentioning is a joint body with another brainchild of the Bretton Woods system - the World Bank.
for financing the organization in question has established a special quota system, based on the so-called Special Drawing Rightsan international reserve asset, which provided a departure from the gold standard.The second source of financing loans steel obtained from the General Arrangements to Borrow and the New Arrangements to Borrow.All the money that receives the International Monetary Fund - is the cash loans from state banks strictly defined countries and financial institutions in Switzerland.These sources of funding can effectively redistribute cash flows, thus ensuring fulfillment of the goals of this financial institution.
Today, the International Monetary Fund - is a powerful financial institution, able, through its organs and powers granted to him an effective impact on the economic situation in almost every country is a member.
