Documente Academic
Documente Profesional
Documente Cultură
of
Mul)lateral
Lending
Agencies
Surveillance
Ar)cle
IV
Consulta)ons
-
regular
consulta)ons
with
member
countries
-
emphasis
on
preven)on
of
nancial
crises
-
stress
on
adequacy
of
reserves,
ability
to
nance
budget
decits,
policy
making,
nancial
regula)on
Surveillance
IMF
Focus
in
Ar)cle
IV
Consulta)ons
(1)
Macroeconomic
Policies
(e.g.
monetary
policy)
(2)
Macroeconomic
performance
(e.g.
GDP)
(3)
Balance
of
Payments
(4)
Financial
sector
policies
(5)
Structural
Policies
IMF
Loans
There
are
three
major
categories
of
IMF
Loans:
(1)
Stand-By
Arrangements
and
the
Supplemental
Reserve
Facility
IMF
Loans
(2)
Extended
Fund
Facility
-
helps
countries
deal
with
balance
of
payments
problems
related
to
structural
programs
-
overlap
with
World
Bank
SALs
IMF
Loans
(3)
Poverty
Reduc)on
and
Growth
Facility
-
loans
with
interest
rates
of
0.5
%
and
maturi)es
of
ten
years
to
poorest
member
countries
Exogenous
Shocks
Facility
(since
2005)
Cri)cisms
of
IMF
Joseph
S)glitz,
a
former
chief
economist
of
the
World
Bank,
is
a
strong
cri)c
of
both
the
IMF
and
the
World
Bank.
S)glitz
states
that
globaliza)on
has
not
lived
up
to
its
poten)al
-
in
the
1990s
the
number
of
people
living
in
poverty
increased
by
almost
100
million
Cri)cisms
of
IMF
-
nancial
contagion
has
increased
instability
S)glitz
accuses
western
countries
of
hypocrisy
-
they
push
LDCs
to
eliminate
trade
barriers
but
prac)ce
agricultural
protec)onism
-
emphasis
on
intellectual
property
rights
benets
western
drug
companies.
IMF
The
original
func)on
of
the
IMF
was
to
(a)
provide
loans
to
countries
facing
economic
downturns,
and
(b)
put
pressure
on
countries
not
maintaining
global
aggregate
demand
Based
on
a
belief
that
markets
were
awed
IMF
In
the
1980s
(by
the
latest)
the
IMF
had
changed
its
views
-
missionary
for
free
market
system
-
put
pressure
on
countries
to
deate
World
Bank
S)glitz
sees
a
similar
shih
in
World
Bank
thinking
aher
the
replacement
of
Robert
McNamara
as
President
by
William
Clausen
in
1981,
with
Anne
Krueger
as
Chief
Economist
-
new
emphasis
on
free
markets
as
the
solu)on
to
the
problems
of
the
LDCs
World
Bank
Structural
Adjustment
Loans
(SALs)
introduced
in
the
1980s
but
)ed
to
IMF-imposed
condi)ons
IMF
and
World
Bank
marching
in
lockstep
Washington
Consensus
IMF
Imperialism
At
the
same
)me
as
it
acquired
greater
faith
in
free
markets
in
the
1980s
the
IMF
saw
its
role
as
greatly
expanded.
It
was
supposed
to
limit
itself
to
macroeconomic
and
nancial
issues
but
almost
any
structural
issue
could
be
seen
as
aec)ng
the
government
budget
or
the
balance
of
payments.
Washington
Consensus
The
consensus
developed
in
response
to
problems
in
La)n
America
-
a
result
of
out
of
control
budgets
and
loose
monetary
policies
-
for
this
region
an
emphasis
on
cujng
budget
decits
and
)ghtening
monetary
policy
was
appropriate
Washington
Consensus
The
emphasis
on
capital
market
liberaliza)on
was
less
appropriate
Kenneth
Rogo,
former
Chief
Economist
at
the
IMF,
concedes
that
this
was
pursued
too
has)ly
Washington
Consensus
Sequencing
of
reforms
is
important
-
it
was
unwise
to
insist
on
capital
market
liberaliza)on
before
the
establishment
of
strong
nancial
ins)tu)ons