The international Monetary fund (IMF)
Learning Task 1
3. The IMF has a board of governors who oversee its operations. Each governor represents a member state and is usually that state's finance minister. Governors vote on IMF decisions and direction, the strength of their vote is determined by how much their state contributes to the IMF (each state is given a quota they must contribute which is based on their ability to pay).
- Read Simpson's section on the IMF, and this factsheet.
- Respond to the following questions
- Explain the background to the IMF (when it was set up? Why?)
- Explain the main responsibility of the IMF and identify the original aims (these original aims are down the bottom of the page)
- The IMF uses a number of methods in an effort to achieve its aims. Explain the purpose of the IMF mechanisms of Surveillance, Financial Assistance and Technical Assistance and describe how they work.
3. The IMF has a board of governors who oversee its operations. Each governor represents a member state and is usually that state's finance minister. Governors vote on IMF decisions and direction, the strength of their vote is determined by how much their state contributes to the IMF (each state is given a quota they must contribute which is based on their ability to pay).
- Analyse the image below of the quotas and voting power of each member state. (Who pays the most? Who has the most votes? What might be the consequences of this set up? Is this fair? The image says the EU member states contribute the most as a group, but be careful, they are represented separately on the board of governors)
Learning Task 2
Objective: To evaluate the influence of the IMF on contemporary global politics.
3. On a separate piece of paper: Respond to this prompt using the evaluate structure: Evaluate the influence of the International Monetary Fund on contemporary Global Politics.
Objective: To evaluate the influence of the IMF on contemporary global politics.
- Read through Simpson 32-36 and the following articles: Can the IMF Solve Economic Problems?, IMF and World Bank are losing clout in developing countries, the IMF is failing.
- Respond to the following questions:
- Describe the ways that the IMF can influence the countries that it lends to (include an example: Greece is a good start).
- Explain the influence that the IMF can have on countries that it lends to (include an example: Greece is a good start)
- Identify the goals of the IMF, explain whether it has been successful at achieving its goals? (The opinion piece: IMF is failing is a good article to look at, provide an example (Greece is a good start!)
3. On a separate piece of paper: Respond to this prompt using the evaluate structure: Evaluate the influence of the International Monetary Fund on contemporary Global Politics.
- Remember: you can talk about how the IMF influences countries (which, lets admit, its pretty good at doing) and the extent to which the IMF actually achieves its aims (which is a bit more questionable).