Christine Lagarde is the first woman to head the IMF in the 65 years of the organisation's history. She trained as a lawyer and for more than two decades worked for a Chicago-based international law firm, where she specialised in major labour and anti-trust cases. She served as French trade minister from to , when she was made finance minister, becoming the first woman to hold such a post in any of the G8 major industrial countries.
Ms Lagarde took over the helm of the IMF in July at a time when the organisation was facing some extremely tough challenges, with the eurozone in a state of deep crisis and fears looming that countries such as Greece could default on their loans.
Never afraid of speaking her mind, she has blamed the worldwide financial crisis partly on the male-dominated, testosterone-fuelled culture at global banks. She is viewed with high regard in the international arena and in was named best finance minister in Europe by the Financial Times. She has pledged to improve diversity at the IMF and to push ahead with reforms to give emerging economies more influence in the organisation.
She took over after the previous head, Dominique Strauss-Kahn, who had to resign over charges of sexual assault. He has subsequently been cleared. World Bank president: Jim Yong Kim. He faced a strong challenge for the post, which has traditionally gone to an American, from Nigerian Finance Minister Ngozi Okonjo-Iweala. Dr Kim succeeded Robert Zoellick is serving a five-year term. The IMF and World Bank attempt to help countries or regions in economic turmoil - and often act as a lender of last resort for nation-states.
Past interventions by the IMF have included providing funds for countries caught up in the Asian financial crisis, and loans to help South American countries such as Argentina and Brazil stave off debt default crises. In October , the IMF activated an emergency funding scheme for countries facing economic distress resulting from the global financial crisis. The biggest borrowers then were Hungary, Romania and Ukraine.
It has not yet responded to the BBC's request for comment on the current status of this funding. Independent money transfer giant Western Union has also suspended money transfer services to Afghanistan "until further notice".
The IMF has taken similar steps against other regimes not recognised by a majority of its members. This happened in April when SDR access was blocked after more than 50 member countries refused to recognise President Nicolas Maduro as the legitimate leader of Venezuela.
The IMF also halted payments to Myanmar after the military junta seized control. The sudden advances made by the Taliban left the IMF with an urgent decision.
It is about to hand out to almost all its members a reserve asset called special drawing rights. It's an exercise that is not about Afghanistan. It's about reinforcing the global economic recovery from the pandemic related crisis. And it's happening on Monday. Loans are administered with especially low interest rates. The IMF offers technical assistance to transitional economies in the changeover from centrally planned to market-run economies.
The IMF also offers emergency funds to collapsed economies, as it did for South Korea during the financial crisis in Asia, which allowed it to avoid sovereign default. Emergency funds can also be loaned to countries that have faced an economic crisis as a result of a natural disaster. All facilities of the IMF aim to create sustainable development within a country and try to create policies that will be accepted by the local population.
However, the IMF is not an aid agency, so all loans are given on the condition that the country implements the SAPs and makes it a priority to pay back what it has borrowed. Countries that are under IMF programs are typically developing, transitional, and emerging market countries countries that have faced financial crises. Because the IMF lends its money with "strings attached" in the form of its SAPs, many people and organizations are vehemently opposed to its activities.
Opposition groups claim that structural adjustment is an undemocratic and inhumane means of loaning funds to countries facing economic failure.
Debtor countries to the IMF are often faced with having to put financial concerns ahead of social ones. Thus, by being required to open up their economies to foreign investment , privatize public enterprises, and cut government spending, these countries suffer an inability to properly fund their education and health programs.
Moreover, foreign corporations often exploit the situation by taking advantage of local cheap labor while showing no regard for the environment.
The oppositional groups say that locally cultivated programs, with a more grassroots approach towards development, would provide greater relief to these economies.
Critics of the IMF say that, as it stands now, the IMF is only deepening the rift between the wealthy and the poor nations of the world. The IMF greatly helped Latin American countries in the s during its debt crisis, helping nations overcome the financial difficulties and turning around their economies. Today, it has helped with policy advice, technical assistance, and financing. The primary responsibility of the World Bank is to aid developing nations in reducing their poverty and increasing their well-being.
The IMF's main purpose is to stabilize the international monetary system and oversee the world's currencies. The World Bank provides "financing, policy advice, and technical assistance to governments, and also focuses on strengthening the private sector in developing countries.
The IMF keeps track of the economy globally and in member countries, lends to countries with balance of payment difficulties, and gives practical help to members. The IMF consists of countries out of the in the world. According to the IMF, its mandate includes "facilitating the expansion and balanced growth of international trade.
The IMF grant "supports charities in the Washington DC metro area and in IMF member countries abroad through annual monetary grants, which focus primarily on fostering economic independence through education and economic development.
Providing assistance with development is an ever-evolving and dynamic endeavor. While the international system aims to create a balanced global economy, it should strive to address local needs and solutions. On the other hand, we cannot ignore the benefits that can be achieved by learning from others. Federal Reserve Bank of St. International Monetary Fund.
Accessed May 10, Federation of American Scientists. Congressional Research Service. The Guardian. The World Bank. International Markets. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance.
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