Transcript Slide 1
Resource Form SharePoint Contact Information PCV Contact Name: Karin N. Jones Group Number: 38 Email: [email protected] Resource Information Title: Author(s): Karin N. Jones Topic: International Monetary Fund guest lecture Description: This is the presentation for the guest lecture I gave on the International Monetary Fund to university and college students. It has a MS Word document with notes that goes along with it. Document Type: Presentation Date Developed: March 2011 Please review the documents you intend to submit and certify that they do not include any of the following by indicating “NO”: Overt remarks about the political affairs of the host country No Disparaging remarks about the host country no Comments that are culturally insensitive no Information that could pose a security risk for a PCV no Remarks of matters of concern to PC or US foreign policy no Comments on matters that may impair the effectiveness of PC or PCVs no The International Monetary Fund Karin N. Jones Community Development Volunteer Peace Corps Ukraine What is Globalization? The opening of international borders to flows of free trade, immigration, direct investment, information, and technology. Benefits Criticisms What is the International Monetary Fund (IMF)? Part of the United Nations (UN) System. Conceived at a United Nations conference convened in Bretton Woods, New Hampshire, United States, in July 1944. Organization of 187 countries, working to: foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Primary purpose is to ensure the stability of the international monetary system. Why the Bretton Woods System was created Avoid Past Mistakes Economic policies that contributed to Great Depression of the 1930s and WW II. Protectionism. Tariff wars. Competitive Devaluation. Rebuild confidence in international cooperation and international financial system. How does the IMF operate? Maintains monetary exchange stability. Assists member countries who are experiencing balance of payments problems. Membership Capital base consists of membership quotas. Total quotas amount to almost $300 billion. Currently a near-global membership of 187 countries. Members’ quotas are determined by their economic position relative to other members and are reviewed on a regular basis. A country’s quota determines its access to financing and voting power. IMF Quotas (percentage of total) 5% 7% Europe 41% 20% United States Americas Asia and Pacific Africa Middle East 10% 17% Key IMF Activities Surveillance Financial Assistance and SDRs Technical Assistance For low-income countries. Surveillance Monitors global, regional, and national economic developments. Assesses the impact of the policies of individual countries on other economies. Provides advice on issues such as the choice of exchange rate policies and ensuring consistency between the regime and fiscal and monetary policies. Financial Sector Assessment Program enables the IMF to determine the strengths and weaknesses of countries’ financial sectors. Financial Assistance IMF loans are meant to help member countries tackle balance of payments problems, stabilize their economies, and restore sustainable economic growth. The IMF is not a development bank and, unlike the World Bank and other development agencies, it does not finance projects. Many different loan programs, depending on Whether it is a low-income country Whether it is a long-term or short-term loan SDRs IMF Lending through the years IMF Credit and Loans Outstanding by Region 2% 2% 9% 12% Africa Asia and Pacific Europe Latin America and Caribbean Middle East and Turkey 75% Who are the biggest borrowers? Romania Ukraine Hungary Greece Pakistan Technical Assistance Designing and implementing fiscal and monetary policies. Drafting and reviewing economic and financial legislation, regulations, and procedures. Institution and capacity building . Central banks Treasuries Tax and customs departments Statistical services Training for officials of member countries. Governance Changes in the IMF Since IMF’s creation: End of colonialism, fall of the Berlin wall, rapid advances in technology, globalization and growth of international capital markets. IMF membership increased from 45 to 187. Today’s challenge: Making globalization work for all. Quota System Changes The IMF and Ukraine Joined September 03, 1992 August 2010 Country Report Key objectives of the authorities’ program are to: consolidate public finances, restore banking system soundness, and develop a more robust monetary policy framework focused on domestic price stability, with greater exchange rate flexibility.