The International Monetary Fund Analysis

The International Monetary Fund (IMF) was created at the Bretton Woods Conference in 1944 “with the goal of creating a stable framework for post-war global economy” (Shah, 2013). The IMF was established after World War II in hopes of deterring a depression and another war, as well as to stabilize countries in poverty with great instability. The IMF was originally envisioned to stimulate stable growth through unconditional loans to countries suffering from economic shortfalls; instead, pressures forced the IMF offer loans with conditions (Third World Traveler, 2010). The IMF is run by the world’s most powerful countries including Britain, France, Germany, Italy, Japan, Canada and the United States; where almost 17 percent of votes are held by the United States (Shah, 2013). Until 2010 the United States controlled enough votes to also have veto power at IMF.
The IMF utilizes its lending ability to increase “confidence, stability, and growth” within countries (IMF, 2013), but not without its share of conditions that greatly affect the countries success. The IMF loans money to countries in need under the agreement of structured adjustments which “insist countries cut benefits for workers and the poor, fire government employees, and sell their assets to foreign investors” (Sanders, 1998).The IMF provides financial help to developing and third world countries that need it, but not without inserting clauses that some argue set the countries requiring assistance further back then they began.
When support from the IMF occurs certain clauses impact the developing nation. Such clauses can produce “currency devaluation, increased interest rates, “flexibility” of the labor market, and the elimination of subsidies such as food subsidies” (Th...

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...er as Figure 1.3 below shows the lending of the IMF after the financial crisis.

Figure 1.3- IMF Lending after the financial crisis (Strauss-Kahn, March)
Since the financial crisis the IMF has added 23 new financing arrangements and increased funding to 12 already existing arrangements in hopes to double their lending capacity (Strauss-Kahn, March). The problem arises in determining if their efforts are in fact helping developing nations or simply making the situations worse. The IMF has increased its training in policies that include topics such as exchange rates, monetary regulations and legal matters.
Since the financial crisis the IMF has also implemented multiple reforms as a means to improve its surveillance process and only time will tell if these reforms can fix the looming shortfalls of the IMF and regain trust in those who see it as solely trouble.