BUSINESS STUDIES (CLASS 11) WORKSHEET 23-INTERNATIONAL MONETARY FUND

INTERNATIONAL MONETARY FUND

1. When and why was IMF created?
The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s. 44 founding member countries sought to build a framework for international economic cooperation. Today, its membership embraces 190 countries, with staff drawn from 150 nations.
2. Which countries started the IMF?
"Original members" (Article II, Section 1), which signed the Articles of Agreement by December 31, 1945. Costa Rica, Poland, Brazil, Uruguay, and Cuba signed the Articles by that date but their membership became effective upon deposit of their respective instruments of acceptance.

IMF started its work in March 1946 the inaugural meeting of Board of Governors in Savannah, Georgia: by-laws are adopted, agreement is reached to locate IMF headquarters in Washington, and first Executive Directors are elected.

3. Which countries are not a part of IMF?
The seven countries (out of a total of 196 countries) that are not IMF members are Cuba, East Timor, North Korea, Liechtenstein, Monaco, Taiwan, and Vatican City.

MAIN OBJECTIVE OF IMF

The International Monetary Fund (IMF) works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.

The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to transact with each other.

4. Is United Nations a part of IMF?

International Monetary Fund (IMF) is part of the United Nations system and has a formal relationship agreement with the UN, but retains its independence. The IMF provides monetary cooperation and financial stability and acts as a forum for advice, negotiation and assistance on financial issues.

5. What are the commonalities between IMF and World Bank?

The IMF and the world Bank were created in July 1944 at an international conference in the United States (in Bretton Woods, New Hampshire) that established a framework for economic cooperation aimed at creating a more stable and prosperous global economy. While this goal remains central to both institutions, their work constantly evolves in response to economic developments and challenges.

The International Monetary Fund (IMF) and the World Bank share a common goal of raising living standards in their member countries. 

Their approaches to achieving this shared goal are complementary: the IMF focuses on macroeconomic and financial stability while the World Bank concentrates on long-term economic development and poverty reduction.

6. Who controls the world economy?

Many people think that the global economy is controlled by governments of the largest economies in the world, but this a common misconception. Although governments do hold power over countries' economies, it is the big banks and large corporations that control and essentially fund these governments.