What Are the Functions of the International Monetary Fund (IMF)

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The Answer is The primary mission of the International Monetary Fund (IMF)has always been to promote international economic stability.Member nations pay "capital subscriptions" into a pooled fund based on the size of their economy.The money in this fund is then lent to countries with balance of payment problems.In the 1980s,the IMF amplified its mission by using its power as a lender to promote the spread of free market ideas.The IMF has always been dominated by the United States and the West.It is headquartered in Washington,D.C.Its governance mechanisms allocate votes based on financial contributions,which are in turn based on the output of national economies.IMF loans usually go to poor,indebted countries.Many loans are conditional.If the country accepts financial aid,it must agree to take actions that strengthen its economy.In the 1980s and 1990s,the organization often required structural adjustment programs.Because these policies were based on a philosophy of liberalization,deregulation,privatization,fiscal austerity,and tax reforms,it was criticized by global progressives as promoting a form of free market fundamentalism.The conditions in IMF loans were often said to be based on a Washington Consensus.British economist John Williamson set forth 10 policies that economists in the World Bank,IMF,and the U.S.Department of the Treasury prescribed as economic reforms for heavily indebted Latin American countries.He believed there was a consensus among them that these policies would promote growth.

What Are the Functions of the International Monetary Fund (IMF)

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