2019 marked 75 years of IMF: Everything you need to know!
It was in the year 1944, the International Monetary Fund (IMF) was established. Let us get a detailed understanding of what it is and what led to its formation.
What is the IMF?
IMF is an international organization consisting of 189 member countries. It is headquartered in Washington, D.C.
According to the official website of the organization, its focus is on promoting a stable environment in the international arena.
- “keeping track of the global economy and the economies of member countries.
- Lending to countries with balance of payments difficulties
- Giving practical help to members.
It works with all its member countries on issues such as poverty, employment, economic growth, financial security, etc. The source of IMF is the resources offered by the World Bank.
Read more: State Legislature: How does it work?
When did it come into existence?
It was formed in the year 1944 at the famous Bretton Woods Conference, also known as United Nations Monetary and Financial Conference. It was the brainchild of Harry Dexter White and John Maynard Keynes. In the same conference, the World Bank was also conceptualized.
IMF came into formal existence only in the year 1945 with 29 countries as its members.
What is the current structure?
IMF currently has 189 members and 24 directors representing either a group of countries of individual countries. The largest borrowers are Argentina, Ukraine, Greece, and Egypt.
Its parent organization is the United Nations, but it does not follow the voting procedure followed by them. At IMF, the voting power is decided on the quota assigned to the country.
The Chief Economist of IMF is an Indian American economist, Gita Gopinath. Kristalina Ivanova Georgieva-Kinova is the managing director.
One of the key works done by the IMF is its economic surveillance on its member countries. It looks at the economic health of the countries and also alerts them about upcoming problems. They provide technical assistance, training, political advise, etc depending on the need of the hour.
The IMF has been very vocal about the economic slowdown our country has been facing and has also been suggesting steps that the government could possibly take to control the situation.
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