The IMF

what does the international monetary fund do

Oversees global financial systems

by following the economic policies of its member countries

whats the IMFs stated objective

to stabilise international exchange rates and facilitate development

and thus stabilise the world’s economy

how many members does the IMF have

186

what do the members of the IMF do

contribute to a pool of money which members with a payment imbalance can borrow from on a temporary basis 

how did they help with the 2008/2009 global financial crisis

they sold some of their gold reserve at the London G20 summit

why might member states with payment imbalance problems request loans

to help cover the difference of the money they have and the amount they need to operate

what are the criticisms of the IMF

their responses to crisis are often delayed

they’re mostly controlled by western nations (because they contribute the most money)

they support undemocratic regimes who are unconcerned about human rights and labour rights

what does the IMF stipulate must be done in exchange for loans

Structural Adjustment Program

what is a Structural Adjustment Programs - SAP

economic policies and reforms countries must implement to stabilise their economy

what did most of the member countries experience from 1980-90 due to IMF loan’s SAP conditions

increased unemployment and poverty

decreased food production

growth in debt causing cuts in social expenditures over time

how much has the IMF given Brazil since 1958

$53b

what did the money given to Brazil do for them

nothing, their economy was unable to grow sustainably due to large debt

how much of brazils population remains poor (even after receiving the loan)

40%