IMF, also known as The Fund or World’s Bank, is a world organization that consists of 189 countries. The organization was created in 1945 and is governed and accountable to the 189 countries. The idea of IMF was first coined at a UN conference that was held in Bretton, New Hampshire by 44 countries. They aimed to build a framework for economic cooperation. This was to avoid unnecessary competition that resulted to the great depression of the 1930s.
Location of the IMF Headquarters
The IMF is located in Washington, D.C., United States of America. The headquarters has two buildings across the street from one another. Their names are Headquarters 1 and Headquarters 2. Headquarters 1 is located on 720 19th street while Headquarters 2 is located on 1900 Pennsylvania Avenue Washington, DC. The current managing director of IMF is Christine Legarde.
The core responsibility of IMF is to ensure that the international monetary system is stable. This is done by strengthening the system of exchange rates and international payments to enable countries to trade with each other. IMF’s other responsibilities include facilitating international trade and promoting high employment by allowing citizens of the organization to work in different countries of their choice. It also helps in promoting sustainable economic growth which in turn helps in eradicating poverty around the world. The organization also works to foster global monetary cooperation and to secure financial stability for its member countries. IMF has helped in shaping the world's economy since the end of World War II.
Achievements of IMF
The IMF has been able to establish a monetary reserve fund which has helped to achieve a sizeable stock of currencies for different member countries. It has also been able to check competitive currency devaluation which boosts trade between many countries. It has also ensured no interference in domestic affairs either directly or indirectly of other countries. IMF has taken a special interest in underdeveloped countries and has provided financial assistance. The organization has also helped in stabilizing the foreign exchange rate which has promoted the flow of international trade among other achievements.
Challenges Facing IMF
There are several challenges, both local and global which are facing the IMF. Despite its effort to eradicate poverty, many people blame IMF for causing financial problems within some countries and areas. Also, determining how inclusive growth can be achieved has become a challenge. They are also facing tensions on the trade front and financial risks when they lend financial help to developing countries. The organization faces challenges in its organization structure when it comes to practical levels and there is increased politicization. They also face difficulties in performance evaluation in different countries. Another challenge observed is dealing with social instability especially in the Middle East and North Africa where there is socially imbalanced growth.
Some changes have been proposed to deal with these issues. There have been discussions to reform its governance, to develop performance accountability of the staff, to improve policies of lending financial help to developing countries and also increasing levels of comprehensiveness in analyzing countries. They have also revised on their roles and objectives.