The IMF’s role in financial crisis
In this age of change, the international financial is progressing promptly on various fronts, such as the International Monetary Fund (IMF) play a pivotal role in international financial system. Yet at the same time, many criticisms point out that IMF are not efficient enough to react to settle the problems that have accompanied with this trend. This issue has drawn widespread attention in recent decades. This essay will give an overview about what the IMF it is first, and then put forward by some examples that what kind of role the IMF has done to address financial issues, good or bad. Finally, this essay will propose some solutions about the IMF how could it be more useful to solve the financial crisis.
The International Monetary Fund (IMF) is an international organization was set up in 1945 after World War II. The whole world had experienced severely destruction during the period World War One and World War Two, each state need the restorative processes and a good platform to recover its inherent ability and make their citizens get rid of poverty, hence economy problem it was the first problem that states should be concerned.
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
According to the IMF’s principles and its special role in the global economy system, the IMF has become increasingly important especially contributed to some financial crisis. For example, the IMF usually offers a series of rescue actions like tying the packages to currency, creating economic reforms for the most-affected economies, helping countries that cannot afford enough capital to avoid default. The IMF’s actions can largely ensure the stability of the financial system to avoid huge damage during the financial crisis, provides many countries that experienced financial crisis advices to restructure the financial institutions.
The IMF’s Structure
As an international monetary organization, the IMF is a central actor in the international financial system. The governance structure about the IMF is not the same as other organizations. The IMF’s governance structure is divided in different kind of sections which are in charge of various kinds of fields, such as the Board of Governance, the Ministerial Committees, and the Executive Board.
Board of Governors
First of all, the Board of Governance is the highest decision making agency which includes a governor and one alternate governor comes from each member states. The governor is usually appointed by the...