The International Monetary Fund

The International Monetary Fund

The International Monetary Fund

Task 1

Which international trend has the most negative effect on the public opinion of the IMF?

The major issue is unjust distribution of generated wealth, dishonesty and a weak taxation policy, which let avoiding taxes and shifting money to tax havens." In Latvia, where the financial system has suffered an 17.4 per cent yearly decline, assembly met IMF and EU demands and gave starting approval for a 2010 financial plan with $2 billion in spending cuts and revenue augment (see Update 67). It is predictable that cost decreases will lead to end of the compressed schools and hospitals and the administration has also pledged to decrease to maternity leave, wages and pensions and lift taxes to. (Barnett, Michael; Finnemore March 2004, 76-78) Commentators are comparing IMF policy in Latvia, to that followed in Argentina before the financial crisis in 2002. Romania is under pressure from the IMF to pass several laws compressed; including the cost-reductions and unfriendly labour reforms may result in loss to more compressed than 100,000 government jobs in the short space of time, compressed between the presidential election, scheduled for December 6 and December 10, IMF period. Fund latency to his money after the Romanian government coalition collapsed in mid-October, following compressed NO confidence vote. Political crisis erupted days after the 800,000 workers went on blow IMF demanded austerity package.

Which are the key strength and the key weakness of the current IMF organisational structure?

Two important strengths to the Foundation support the effectiveness of governance in the institution. First, it is compact management structure, with one Management Director and three deputies who closely work with senior staff to send to organization. This structure makes possible rapid information flow of the compressed and facilitates centralized control of the compressed institution adaptation that allows for preservation of a significant degree of consistency of the compressed. (Barnett, Michael; Finnemore March 2004, 76-78)

Second, the main characteristics of the compressed governance of the Fund allow it to respond quickly when called to act as "fire" when the country faces balance of payments compressed OR financial crisis. Office construction on employees has a well-rehearsed procedure modes of compressed to arrange programs to use for constituents of countries' compressed Fund assets (UFR): it assesses the difficulties, concepts and negotiates conditionality and coordinates economic support from other creditors. Staff accounts supply backdrop for Board reconsider and acceptance of funding of compressed packets, and double-check very broad support for from the membership. This method is generally functioned in a fast and reliable kind, which made likely the rigid and centralized command over employees and its activities. In these values, the IMF stands out amidst other worldwide organizations.International Monetary Fund Organization Chart

The Fund's effectiveness as the "fire fighter" of the international economic scheme has been especially obvious when there is a systemic crisis. In these situations, casual governance practices appear that permit the Fund to answer with pace and flexibility, in positions where other multilateral associations might ...