The IMF has played a part in shaping the global economy since the end of World

War II.
Cooperation and reconstruction (1944–71)
As the Second World War ends, the job of rebuilding national economies begins. The IMF is
charged with overseeing the international monetary system to ensure exchange rate
stability and encouraging members to eliminate exchange restrictions that hinder trade.
The end of the Bretton Woods System (1972–81)
After the system of fixed exchange rates collapses in 1971, countries are free to choose
their exchange arrangement. Oil shocks occur in 1973–74 and 1979, and the IMF steps in
to help countries deal with the consequences.
Debt and painful reforms (1982–89)
The oil shocks lead to an international debt crisis, and the IMF assists in coordinating the
global response.
Societal Change for Eastern Europe and Asian Upheaval (1990–2004)
The IMF plays a central role in helping the countries of the former Soviet bloc transition
from central planning to market-driven economies.
Globalization and the Crisis (2005 - present)
The implications of the continued rise of capital flows for economic policy and the stability
of the international financial system are still not entirely clear. The current credit crisis and
the food and oil price shock are clear signs that new challenges for the IMF are waiting just
around the corner.

Our Work
The IMF's fundamental mission is to help ensure stability in the international
system. It does so in three ways: keeping track of the global economy and the
economies of member countries; lending to countries with balance of payments
difficulties; and giving practical help to members.
Surveillance
The IMF oversees the international monetary system and monitors the financial and
economic policies of its members. It keeps track of economic developments on a national,
regional, and global basis, consulting regularly with member countries and providing them
with macroeconomic and financial policy advice.

Technical Assistance
To assist mainly low- and middle-income countries in effectively managing their
economies, the IMF provides practical guidance and training on how to upgrade
institutions, and design appropriate macroeconomic, financial, and structural policies.

Lending
The IMF provides loans to countries that have trouble meeting their international payments
and cannot otherwise find sufficient financing on affordable terms. This financial assistance
is designed to help countries restore macroeconomic stability by rebuilding their
international reserves, stabilizing their currencies, and paying for imports—all necessary
conditions for relaunching growth. The IMF also provides concessional loans to low-income
countries to help them develop their economies and reduce poverty.
Tackling current challenges
The IMF is helping many emerging market countries tackle the problems brought on
by the devastating global economic crisis. Its lending to low-income countries has
also been stepped up, as these countries start to feel the effects of the crisis. And it
is providing policy advice to advanced countries, for instance on how to address
problems in their financing and banking sectors, and how to design effective
stimulus packages. As part of its response, the IMF has already more than doubled
its financial assistance to low-income countries, with new IMF concessional lending
commitments to low-income countries through mid-July 2009 reaching $2.9 billion
compared with $1.5 billion for the whole of 2008.
As the global economy continues to struggle in 2009, and with both trade and
capital flows plummeting, the IMF is foreseeing mounting problems for many
countries. The Fund is therefore seeking to add to its resources, and has already
negotiated borrowing agreements with a number of countries. The Fund has already
made good progress toward its target of $250 billion in bilateral government loans
as part of moves to triple the IMF’s lendable resources to $750 billion. Agreements
are already in place with Japan ($100 billion), Canada ($10 billion), and Norway
($4.5 billion), and a number of other countries have committed funds either
through loans or the purchase of IMF notes.
In addition, the Fund is closely tracking economic and financial developments
worldwide so that it can provide policymakers with the latest forecasts and analysis
of developments in financial markets. And it is engaging with the Group of 20 (G-
20) leading economies and other stakeholders on issues related to the evolution of
the international financial system.

Emergency lending to emerging markets

Emerging market countries are facing increasing difficulties around the world because of the
spreading global economic crisis, with demand falling for their exports, investment slumping, and
cross-border lending drying up. A growing number of emerging economies have found room for
policy maneuver becoming increasingly limited, and large-scale official support has been needed
from bilateral and multilateral sources.
Since 2008, the IMF has committed more than $160 billion in lending to a number of countries
affected by the crisis, including Belarus, Hungary, Iceland, Latvia, Pakistan, Poland, Romania, Serbia,
Sri Lanka, and Ukraine. It announced a precautionary loan for El Salvador and an IMF team has also
been in negotiations with Turkey.
Helping low-income countries fight the crisis
The global economic crisis is threatening to undermine recent economic gains and to create a
humanitarian crisis in the world’s poorest countries. In response, the IMF has stepped up lending to
low-income countries to combat the impact of the global recession with a new framework for loans to
the world’s poorest nations, including increased resources, a doubling of borrowing limits, zero
interest rates until the end of 2011, and new lending instruments that offer more flexible terms. Most
low-income countries escaped the early phases of the global crisis, which began in the financial
sectors of advanced economies. But it is now hitting them hard, mainly through trade, as financial
problems in advanced countries trigger recessions that dampen demand for imports from low-income
countries.
In addition, more than $18 billion of a planned $250 billion allocation of IMF Special Drawing Rights
(SDRs) will go to low-income countries. These countries can benefit by either counting the SDRs as
extra assets in their reserves, or selling their SDRs for hard currency to meet balance of payments
needs.

Advocating global fiscal stimulus

The IMF is also providing policy advice to advanced countries, for instance on how to address
problems in their financing and banking sectors, and how to design effective stimulus packages.
Because of the constraints on the effectiveness of monetary policy, fiscal policy must play a central
role in supporting demand. The IMF has advised countries that a key feature of a fiscal stimulus
program is that it should support demand for a prolonged period of time and be applied broadly
across countries with policy space to minimize cross-border leakages.
But countries also need to be mindful of medium-term fiscal sustainability. The cost of fiscal stimulus
packages to revive economies battered by the financial crisis, combined with tax revenue losses from
output decline and the huge price tag for financial sector restructuring, will be very large.
Reforming the international financial system
The global economic crisis has sparked a rethinking of how the international financial system is
structured. The IMF is assisting the G-20 industrialized and emerging economies
withrecommendations to reshape the system of international regulation and governance. To a large
extent, global efforts thus far have been focused on the crisis at hand, but reforms are in progress
with a view toward the post-crisis world.
As input into the reform process, the IMF published acomprehensive study of the causes of the global
financial crisis. The study takes stock of the initial lessons learnt from the crisis and presses for a
worldwide rethink of how to handle systemic risk management.
Although economic and financial sector policies will remain primarily the business of national
governments, ongoing changes to the global financial architecture—including to the IMF—can reduce
the frequency and depth of future crises. Additional changes could also include addressing some of
the shortcomings of the decision-making structure of the G-20 by allowing greater scope for joint
decision making on a wider set of international economic and financial issues, with the IMF in its
newly expanded role as a central player.
Governance
The IMF is accountable to the governments of its member countries.
Governance Structure
The IMF's mandate and governance have evolved along with changes in the global
economy, allowing the organization to retain a central role within the international financial
architecture.

Governance Structure
Video (1:09): IMF's Executive Board

Related Links

• IMF Executive Directors

• IMF Organization
• IMF Annual Report
• IMF Executive Board calendar
• Work Program of the Executive Board
• IMF Public Information Notices
• Article IV consultations
The IMF's mandate and governance have evolved along with changes in the global
economy, allowing the organization to retain a central role within the international
financial architecture. The diagram below provides a stylized view of the IMF's
current governance structure.

Board of Governors
The Board of Governors is the highest decision-making body of the IMF. It consists
of one governor and one alternate governor for each member country. The governor
is appointed by the member country and is usually the minister of finance or the
head of the central bank.
While the Board of Governors has delegated most of its powers to the IMF's
Executive Board, it retains the right to approve quota increases, special drawing
right (SDR) allocations, the admittance of new members, compulsory withdrawal of
members, and amendments to theArticles of Agreement and By-Laws.
The Board of Governors also elects or appoints executive directors and is the
 ultimate arbiter on issues related to the interpretation of the IMF's Articles of
Agreement. Voting by the Board of Governors usually takes place by mail-in ballot.
The Boards of Governors of the IMF and the World Bank Group normally meet once
a year, during the IMF-World Bank Spring and Annual Meetings, to discuss the work
of their respective institutions. The Meetings, which take place in September or
October, have customarily been held in Washington for two consecutive years and in
another member country in the third year.
The Annual Meetings usually include two days of plenary sessions, during which
Governors consult with one another and present their countries' views on current
issues in international economics and finance. During the Meetings, the Boards of
Governors also make decisions on how current international monetary issues should
be addressed and approve corresponding resolutions.
The Annual Meetings are chaired by a Governor of the World Bank and the IMF, with
the chairmanship rotating among the membership each year. Every two years, at
the time of the Annual Meetings, the Governors of the Bank and the Fund elect
Executive Directors to their respective Executive Boards.

Youssef Boutros-Ghali, Finance Minister, Egypt and Chairman of IMFC

Ministerial Committees
The IMF Board of Governors is advised by two ministerial committees,
the International Monetary and Financial Committee (IMFC) and theDevelopment
Committee.
The IMFC has 24 members, drawn from the pool of 187 governors. Its structure
mirrors that of the Executive Board and its 24 constituencies. As such, the IMFC
represents all the member countries of the Fund.
The IMFC meets twice a year, during the Spring and Annual Meetings. The
Committee discusses matters of common concern affecting the global economy and
also advises the IMF on the direction its work. At the end of the Meetings, the
Committee issues a joint communiqué summarizing its views. These communiqués
provide guidance for the IMF's work program during the six months leading up to
the next Spring or Annual Meetings. There is no formal voting at the IMFC, which
operates by consensus.
The Development Committee is a joint committee, tasked with advising the Boards
of Governors of the IMF and the World Bank on issues related to economic
development in emerging and developing countries. The committee has 24
members (usually ministers of finance or development). It represents the full
membership of the IMF and the World Bank and mainly serves as a forum for
building intergovernmental consensus on critical development issues.
The Executive Board
The IMF's 24-member Executive Board takes care of the daily business of the IMF.
Together, these 24 board members represent all 187 countries. Large economies,
such as the United States and China, have their own seat at the table but most
countries are grouped in constituencies representing 4 or more countries. The
largest constituency includes 24 countries.
The Board discusses everything from the IMF staff's annual health checks of
member countries' economies to economic policy issues relevant to the global
economy. The board normally makes decisions based on consensus but sometimes
formal votes are taken. At the end of most formal discussions, the Board issues
what is known as a summing up, which summarizes its views. Informal discussions
may be held to discuss complex policy issues still at a preliminary stage.
Governance Reform
Important progress was made in the reform of the Fund's governance in 2006-08,
including the initiation of a process to realign members' voting power (see Country
Representation). However, enhancing the Fund's legitimacy and effectiveness must
also deal with the question of whether the significant changes since the
establishment of the Fund require reform of the institutional framework through
which members' voting power is actually exercised. Among other things, this
 requires careful consideration of the respective roles and responsibilities of the
Board of Governors, the IMFC, the Executive Board, and IMF management.
Managing Director Dominique Strauss-Kahn appointed in September 2008 a
committee of eminent persons to assess the adequacy of the IMF's current
framework for decision making and advise on any modifications that might enable
the institution to fulfill its global mandate more effectively. The eight-person
committee, chaired by Trevor Manuel, Minister of Finance of South Africa, reported
its findings in March 2009.
Governance reform is currently being accelerated.
In April 2009, the International Monetary and Financial Committee (IMFC), which
advises on IMF policies, called for a prompt start to a fresh review of quotas (the
Fourteenth General Review), and in April 2010 the IMFC requested completion of
the review before January 2011—some two years ahead of the original schedule.
The Fourteenth General Review is now underway and will address the realignment
of quota shares and the size of the overall quota increase.
In October 2009, the IMFC endorsed a call by G-20 leaders for a shift in quota
share to dynamic emerging market and developing countries of at least five percent
from over-represented to under-represented countries using the current quota
formula as the basis to work from. In addition, there is a commitment to protecting
the voting share of the poorest members.

Country Representation

How countries are represented is key to the IMF's legitimacy as an international

organization representing the interests of its 187 member countries.

Country Representation

The IMFC in session.

Related Links

• Guide to committees
• International Monetary and Financial Committee
• Development Committee
• IMF factsheets
• IMF Annual Meetings
• List of Annual Meetings
• About the Meetings
How countries are represented is key to the IMF's legitimacy as an international
organization representing the interests of its 187 member countries. Upon joining
the IMF, each country is allocated a quota based approximately on the relative size
of its economy. The quota determines the country's financial contribution to the
IMF, its voting power, and ability to access IMF financing.
Because of rapid changes in the global economy in recent years, the IMF's members
agreed that the existing quota allocations had become somewhat misaligned and
needed to be adjusted. However, any changes in quotas require approval by an 85
percent majority. A broad-based consensus was therefore needed before any
changes could be implemented.
Two-year program
In 2006, the IMF launched a two-year program to reform the system of quota
shares. First-round changes included ad hoc quota increases for the four most
underrepresented countries: China, Korea, Mexico, and Turkey (see
chart). Agreement to further increase the voting share of emerging market and
developing economies was reached in March 2008. This shift will be based on a new
quota formula, replacing the old, complex system of five formulas.
Under the reform, 135 countries will see increases in their voting power, with an
aggregate shift of 5.4 percentage points. A total of 54 countries will see increases in
their nominal quotas ranging from 12 to 106 percent, with aggregate quota shares
for these countries increasing by 4.9 percentage points (see chart). Consistent with
the objectives of the reform, some of the largest increases will go to dynamic
emerging market countries.
The Board of Governors also encouraged the Executive Board to recommend further
realignments as a means to raise the shares of underrepresented members in future
general quota reviews (conducted every five years). Such realignments would
recognize that member country representation should continue to adjust to changes
in the global economy.

Protecting voice of low-income countries

Enhancing the voice of low-income countries was another central element of the
reform package. A key mechanism for achieving this goal is through an increase in
basic votes. Basic votes reflect the principle of equality of states and give the
smallest members of the IMF (many of which are low-income countries), a greater
voice in the organization's deliberations.
The agreement reached endorsed a tripling of basic votes, the first such increase
since the IMF was established in 1945. This boost is crucial as it will more than
compensate many low-income countries that would have otherwise seem their
voting shares diminished (see chart). Additionally, the Articles of Agreement will be
amended so that the share of basic votes in total voting power does not decline in
the event of future quota increases.
 To further enhance the participation of low-income countries, the amendment will
also enable the two Executive Directors representing African constituencies to
appoint a second Alternate Executive Director.
Watch a video on governance reform.
Read more about quota and voice reform.
Listen to a podcast with Leo van Houtven, former Secretary of the IMF.

Accountability
The IMF is held accountable by multiple stakeholders, including by its own internal
watchdog, member governments, the media, civil society, and academia.

Accountability
Video (3:19): An interview with the head of the IMF's evaluation office

Related Links

• Independent Evaluation Office

• Transparency at the IMF
• The IMF: Making a Difference
• Evaluations of IMF work
• News releases on evaluations of IMF
• IMF External Audit Committee
The IMF is accountable to its 187 member governments, and is also scrutinized by
multiple stakeholders, from political leaders and officials to, the media, civil society,
academia, and its own internal watchdog. The IMF, in turn, encourages its own
members to be as open as possible about their economic policies to encourage their
accountability and transparency.
Engagement with intergovernmental groups
Official groups, such as the Group of Eight (G-8) and the Group of Twenty (G-20),
are also actively engaged in the work of the IMF.
The G-8 finance ministers and central bank governors meet at least twice annually
to monitor developments in the world economy and assess economic policies. The
Managing Director of the IMF is usually invited to participate in those discussions.
The G-8 functions as a forum for discussion of economic and financial issues among
the major industrial countries—Canada, France, Germany, Italy, Japan, Russia, the
United Kingdom, and the United States.
The G-20 consists of the 20 leading and emerging economies of the world, and
includes all G-8 countries plus Argentina, Australia, Brazil, China, India, Indonesia,
Korea, Mexico, Saudi Arabia, South Africa, and Turkey, as well as the European
Union. The G-20 discusses and coordinates international financial stability and is a
key player in shaping the work of the IMF. Its meetings usually take place twice a
year at the level of heads of state and government, with several other ministerial-
level meetings, including finance ministers and central bank governors, held a few
times a year.
Civil society, think tanks, and the media
The IMF's work is scrutinized by the media, the academic community, and civil
society organizations (CSOs).
IMF management and senior staff communicate with the media on a daily basis.
Additionally, a biweekly press briefing is held at the IMF Headquarters, during which
a spokesperson takes live questions from journalists. Journalists who cannot be
present are invited to submit their questions via the online media briefing center.
IMF staff at all levels frequently meet with members of the academic community to
exchange ideas and receive new input. The IMF also has an active outreach
program involving CSOs. An IMF and Civil Society webpage was launched in
December 2007.
Internal watchdog
The IMF's work is reviewed on a regular basis by an internal watchdog,
the Independent Evaluation Office, established in 2001. The IEO is fully independent
from IMF management and operates at arm's length from the Executive Board,
although the Board appoints its director.
The IEO's mission is to enhance the learning culture within the IMF, strengthen its
external credibility, promote greater understanding of the work of the Fund, and
support institutional governance and oversight.
The IEO establishes its own work program, selecting topics for review based on
suggestions from stakeholders inside and outside the IMF. Its recommendations
strongly influence the Fund's work. It has recently reviewed the IMF's engagement
with sub-Saharan Africa, its advice to member countries on exchange rate policy,
and its governance.
Ethics office and whistleblower hotline
The IMF also has its own Ethics Office. Established as an independent arm of the
Fund in 2000, the Office provides advice and guidance to IMF staff, and undertakes
investigations into allegations of unethical behavior and misconduct. An Integrity
Hotline—a 24-hour whistleblowing system—was launched in 2008.
Transparency
The IMF also encourages its member countries to be as open as possible about their
economic policies. Greater openness encourages public discussion of economic
policy, enhances the accountability of policymakers, and facilitates the functioning
of financial markets.
To that effect, the IMF's Executive Board has adopted a transparency policy to
encourage publication of member countries' policies and data. This policy designates
the publication status of most categories of Board documents as "voluntary but
presumed." This means that publication requires the member's explicit consent but
is expected to take place within 30 days following the Board discussion.
In taking these steps to enhance transparency, the Executive Board has had to
consider how to balance the IMF's responsibility to oversee the international
monetary system with its role as a confidential advisor to its members. The IMF
regularly reviews its transparency policy.