The%20Evolving%20Role%20of%20the%20IMF%20in%20a%20Globalized%20World%20Economy

1
The Evolving Role of the IMF in a Globalized
World Economy

• Presentation to the Global Seminar Series
• December 13, 2006
• Patrick Cirillo
• pcirillo_at_imf.org
• Deputy Chief, Operations, Secretarys Department
• International Monetary Fund

2
Overview

• The Functions of the IMF A Quick Refresher
• The Evolving Role of the IMF A Medium-Term
  Strategy

3
The Creation of the IMF and the Postwar
Accomplishments

• The first part of the 20th century saw a
  breakdown of cooperation among nations
• The IMF was one of the institutions set up to
  avoid a repeat of that experience. Our sister
  institution, the World Bank, specializes in
  promoting economic development.
• The postwar economic and social achievements have
  been impressive

4
The Functions of the IMF

• The IMF works to promote global growth and
  economic stability and to reduce poverty. The
  World Bank promotes long-term economic
  development.
• The IMF is a forum for international monetary
  cooperation.
• The IMFs functions have evolved over the
  decades, but its purposes remain the same.

5
The Functions of the IMF

• Surveillance (like a doctor)
• Gathering data and assessing economic policies
  of countries
• Technical Assistance (like a teacher)
• Strengthening human skills and institutional
  capacity of countries
• Financial Assistance (like a banker)
• Lending to countries to support reforms

6
Governance of the IMF

• IMF is accountable to its member countries.
• Board of Governors one governor from each member
  country. Meets once a year.
• Day to day affairs are guided by the Executive
  Board 24 Executive Directors. Managing Director
  of IMF is Chairman of Executive Board.

7
IMF Resources

• IMFs capital base consists of membership quotas,
  the financial contribution made by member
  countries. Total quotas amount to about US310
  billion.
• Members quotas are determined by their economic
  weight in the global economy.
• A members quota determines its voting power and
  size of loan a country can borrow.

8
Evolving Role of the IMF Medium Term Strategy

• New directions in surveillance to sharpen focus
• Strengthening the role of the IMF in emerging
  market countries
• More effective engagement in low-income countries
  
• Capacity building
• Governance of the IMF quotas and voice reforms
• Prioritize and reorganize the IMF's work within a
  prudent medium-term budget

9
For more information, visit us at

• www.imf.org