preview

What Is The Role Of The International Monetary Fund (IMF?

Good Essays
The International Monetary Fund (IMF)

The International Monetary Fund (IMF) was established in 1946, along with the World Bank. The IMF was developed to promote all monetary cooperation and remedy economic problems incurred during the post - war reconstruction period (Baylis; 2008: 245). The IMF was therefore considered as the “rule keeper” and an important component in public international management. In the pursuit to stabilise the exchange rate system, the IMF reserves the authority to change exchange rates. Another vital role is control over the balance of payments deficit of states and governing the policies which affect states monetary systems (Spero; 1990: 33). However, since the 1980 's, the IMF 's role has settled into the position of an institution providing assistance, based on financial situations, to developing countries. In order for countries to receive any assistance, the
…show more content…
It is seen as the largest source of development assistance, along with the IMF, to developing countries. However, the World Bank requires the support of other organisations apart from the International Monetary Fund. These organisations include the International Development Association, the Multilateral Guarantee Agency and the International Finance Corporation (Baylis; 2008: 245). The role of the World Bank in our generation has not changed much compared to the past goals. The World Bank has assumed the responsibility to resolve the major challenges faced by poverty-stricken countries through capital provisions, assumed the role as a mediator for fragile countries in conflict and assisted with global development on a economic, social and reconstructive level. These goals form part of the overall Millennium Development Goals which were adopted by the World Bank