Global Institutions: IMF | Economy for UPSC 2024 (Pre & Mains) PDF Download

 Page 1


ECONOMY
GLOBAL 
INSTITUTIONS
IMF
Page 2


ECONOMY
GLOBAL 
INSTITUTIONS
IMF
Bretton Woods Conference (1944) was a meeting among the allied 
nations to decide how the world economy would function in the 
wake of World War II.
Highlight of the conference was the decision to establish 2 global 
financial institutions –
- International Monetary Fund (IMF) 
- International Bank for Reconstruction & Development (IBRD -
World Bank)
BRETTON WOODS INSTITUTIONS
Page 3


ECONOMY
GLOBAL 
INSTITUTIONS
IMF
Bretton Woods Conference (1944) was a meeting among the allied 
nations to decide how the world economy would function in the 
wake of World War II.
Highlight of the conference was the decision to establish 2 global 
financial institutions –
- International Monetary Fund (IMF) 
- International Bank for Reconstruction & Development (IBRD -
World Bank)
BRETTON WOODS INSTITUTIONS INTERNATIONAL MONETARY FUND
International Monetary Fund (IMF) came up in 1944.
Its main functions are 
• Exchange rate regulation, 
• Purchasing short-term foreign currency liabilities of member 
nations, 
• Allotting special drawing rights (SDRs) to member nations, and 
the most important-
• T o help the member economies in situation of any BoP crisis
Page 4


ECONOMY
GLOBAL 
INSTITUTIONS
IMF
Bretton Woods Conference (1944) was a meeting among the allied 
nations to decide how the world economy would function in the 
wake of World War II.
Highlight of the conference was the decision to establish 2 global 
financial institutions –
- International Monetary Fund (IMF) 
- International Bank for Reconstruction & Development (IBRD -
World Bank)
BRETTON WOODS INSTITUTIONS INTERNATIONAL MONETARY FUND
International Monetary Fund (IMF) came up in 1944.
Its main functions are 
• Exchange rate regulation, 
• Purchasing short-term foreign currency liabilities of member 
nations, 
• Allotting special drawing rights (SDRs) to member nations, and 
the most important-
• T o help the member economies in situation of any BoP crisis
Board of Governors of the IMF consists of one Governor and one Alternate 
Governor from each member country. 
For India, Finance Minister is the Ex-officio Governor 
The RBI Governor is the Alternate Governor on the Board
The day-to-day management of the IMF is carried out by the Managing 
Director who is Chairman of the Board of Executive Directors. 
India is represented at the IMF by an Executive Director
Who also represents three other countries in India’s constituency, viz., 
Bangladesh, Sri Lanka and Bhutan.
Page 5


ECONOMY
GLOBAL 
INSTITUTIONS
IMF
Bretton Woods Conference (1944) was a meeting among the allied 
nations to decide how the world economy would function in the 
wake of World War II.
Highlight of the conference was the decision to establish 2 global 
financial institutions –
- International Monetary Fund (IMF) 
- International Bank for Reconstruction & Development (IBRD -
World Bank)
BRETTON WOODS INSTITUTIONS INTERNATIONAL MONETARY FUND
International Monetary Fund (IMF) came up in 1944.
Its main functions are 
• Exchange rate regulation, 
• Purchasing short-term foreign currency liabilities of member 
nations, 
• Allotting special drawing rights (SDRs) to member nations, and 
the most important-
• T o help the member economies in situation of any BoP crisis
Board of Governors of the IMF consists of one Governor and one Alternate 
Governor from each member country. 
For India, Finance Minister is the Ex-officio Governor 
The RBI Governor is the Alternate Governor on the Board
The day-to-day management of the IMF is carried out by the Managing 
Director who is Chairman of the Board of Executive Directors. 
India is represented at the IMF by an Executive Director
Who also represents three other countries in India’s constituency, viz., 
Bangladesh, Sri Lanka and Bhutan.
IMF QUOTA
Quotas are assigned by IMF according to –
- The relative size of its GDP (50%)
- Openness (30%)
- Economic variability (15%) 
- International reserves (5%)