Among other "gifts" of the Bretton Woods system inIn 1944 the International Monetary Fund was founded, which plays an important role in the modern world. The attitude to this organization among member countries and world analysts is very ambiguous, and in order to understand what place it occupies in the financial system of the world, it should be carefully studied.
The purposes and functions of the International Monetary Fund
Created in the period of active military operations on the margins of the Second World War, the International Monetary Fundwas called to restore and strengthen the economycountries after its completion. A huge contribution to the creation of this organization was made by British economist J.M. Keynes and US Press Secretary G.D. White, who developed a basis for preventing economic crises that arise from the use of devaluations.
To date, the International Monetary Fund -This is a specialized financial and credit organization, of which 184 countries are members. In order to understand why this foundation was created, it is enough just to list its main goals:
To implement them, the World Monetary Fund actually carries out the following actions:
The last is for today the mostimportant function, because Together with the receipt of funds, the debtor country will be obliged to implement all recommendations for optimizing the state budget.
International Monetary Fund - structure and financing
For an organization that includes most of thecountries, the presence of a governance structure is quite characteristic. The Governing Council occupies a special place in it. The purpose of his activity is to develop tactics for resolving the problems that are brewing or already existing. But the direct implementation of the decisions made by the Board of Management falls directly to the Executive Committee. This body consists of 24 members, eight of which are permanent, and 16 operate on a rotation principle every two years.
Also, the World Monetary Fund has twothe most important committees - the International Monetary and Financial (IMFC) and the Development Committee. The former considers issues related solely to the state of the foreign exchange market (see Goals 2 and 3), and the second focuses its efforts on helping developing countries. And the latter, it is worth noting, is a joint body with another brainchild of the Bretton Woods system - the International Bank.
To finance the activities of theThe organization created a special quota system based on the special rights of borrowing so-called. an international reserve asset, which provided a departure from the gold standard. The second source of financing activities were loans received under the General Loan Agreements and the New Loan Agreements. All funds received by the International Monetary Fund are cash loans received from state banks of strictly specified countries and financial institutions of Switzerland. These sources of funding can effectively redistribute cash flows, thereby ensuring the fulfillment of the objectives of this financial institution.
Today, the International Monetary Fund is a powerfula financial institution capable of effectively influencing the economic situation through its bodies and powers given to it in practically any country that is a member of it.