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Contact InformationPCV Contact Name: Karin N. Jones Group Number: 38Email:  knjoneslaw@hotmail.com Resource InformationTitle: Author(s): Karin N. Jones Topic: International Monetary Fund guest lectureDescription: 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: PresentationDate Developed: March 2011Please 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 NoDisparaging remarks about the host country noComments that are culturally insensitive noInformation that could pose a security risk for a PCV noRemarks of matters of concern to PC or US foreign policy noComments on matters that may impair the effectiveness of PC or PCVs no

Karin N. JonesCommunity Development VolunteerPeace Corps Ukraine

The International Monetary Fund

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)

41%

17%

10%

20%

5%7%

EuropeUnited StatesAmericasAsia and PacificAfricaMiddle East

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%

12%

75%

2% 9%

AfricaAsia and PacificEuropeLatin America and CaribbeanMiddle East and Turkey

Who are the biggest borrowers?RomaniaUkraineHungaryGreecePakistan

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.