The International Monetary Fund ( Imf ) Essay

2250 Words9 Pages
Introduction:
The International Monetary Fund (IMF) is an international organization created in 1945 to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and to reduce poverty around the world. The IMF is governed and accountable to the 189 countries that make up the global membership of the organization. These goals make up the IMFs formal rules, the informal rules allow more access for powerful countries, such as the United States and Germany, to set their foreign policy goals through the facade of the IMF. The United States and other powerful nations like Germany, operate on a constraint conditionality that allows them to influence countries based upon their Western ideals and practices of democracy.
The IMF requires certain qualifications in order for countries to receive financial help. If countries want to borrow money from the IMF, they must meet a certain set of conditions: fiscal policy disciplines like avoiding large fiscal deficits relative to GDP, redirection of public spending from subsidies toward primary education, health care and infrastructure investment, tax reform, market determined interest rates, competitive exchange rates, trade liberalization, liberalization of inward Foreign Direct Investment (FDI), privatization of state owned enterprises, deregulation and legal security for property rights. These conditions are known as the Washington Consensus,

More about The International Monetary Fund ( Imf ) Essay

Open Document