The Monterrey Consensus was the outcome of the 2002 Monterrey Conference, the United Nations International Conference on Financing for Development . in Monterrey , Mexico . It was adopted by Heads of State and Government on 22 March 2002.
81-821: The Monterrey Consensus was updated at Doha, Qatar in 2008, and again at Addis Ababa in 2015. Over fifty Heads of State and two hundred Ministers of Finance, Foreign Affairs, Development and Trade participated in the event. Governments were joined by the Heads of the United Nations, the International Monetary Fund (IMF), the World Bank and the World Trade Organization (WTO), prominent business and civil society leaders and other stakeholders. New development aid commitments from
162-434: A January 2014 report entitled "Fiscal Policy and Income Inequality" that stated that "Some taxes levied on wealth, especially on immovable property, are also an option for economies seeking more progressive taxation ... Property taxes are equitable and efficient, but underutilized in many economies ... There is considerable scope to exploit this tax more fully, both as a revenue source and as a redistributive instrument." At
243-483: A broader focus of promoting market-liberalizing reforms through structural adjustment programs. This shift occurred without a formal renegotiation of the organization's charter or operational guidelines. The Ronald Reagan administration , in particular Treasury Secretary James Baker , his assistant secretary David Mulford and deputy assistant secretary Charles Dallara , pressured the IMF to attach market-liberal reforms to
324-487: A position of oversight of only exchange rates, their function became one of surveillance of the overall macroeconomic performance of member countries. Their role became a lot more active because the IMF now manages economic policy rather than just exchange rates. In addition, the IMF negotiates conditions on lending and loans under their policy of conditionality , which was established in the 1950s. Low-income countries can borrow on concessional terms , which means there
405-415: A quota system, countries contribute funds to a pool from which countries can borrow if they experience balance of payments problems. The IMF works to stabilize and foster the economies of its member countries by its use of the fund, as well as other activities such as gathering and analyzing economic statistics and surveillance of its members' economies. The current managing director (MD) and chairperson of
486-508: A range of non-traditional mechanisms to raise funds for development aid through "innovative" projects such as micro-contributions, taxes, public-private partnerships and market-based financial transactions. As of the beginning of 2010, most of the existing innovative financing mechanisms were allocated for the health care sector in developing countries. By 2010, Innovative financing mechanisms had raised US$ 2 billion for health care systems. The concept "innovative financing for development"
567-518: A travel services. All funds go to UNITAID in its fight against HIV/AIDS, tuberculosis and malaria. Additional funding will go towards improving maternal and child health in the developing world. De-Tax is a "proposal to earmark a share of VAT Taxes generated by participating businesses for health systems development". De-Tax is being discussed by the G20 countries. Among some potential future innovative finance mechanisms: Currency Transaction Levy (CTL)
648-503: A year and is responsible for electing or appointing an executive director to the executive board. While the board of governors is officially responsible for approving quota increases, special drawing right allocations, the admittance of new members, compulsory withdrawal of members, and amendments to the Articles of Agreement and By-Laws, in practice it has delegated most of its powers to the IMF's executive board. The board of governors
729-933: Is a period of time with no interest rates, through the Extended Credit Facility (ECF), the Standby Credit Facility (SCF) and the Rapid Credit Facility (RCF). Non-concessional loans, which include interest rates, are provided mainly through the Stand-By Arrangements (SBA), the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL), and the Extended Fund Facility. The IMF provides emergency assistance via
810-503: Is a potential mechanism that would let governments apply a tax on foreign exchange transactions. An expert working group is underway to assess the feasibility of the proposed levy of 0.005%. The tax would be managed through computerized payments made in connection with the settlement of every trade. Auctioning of permits to emit greenhouse gases could be one of the first innovative financing mechanisms earmarked for environmental purposes. Germany announced that it would allocate €225 million from
891-656: Is advised by the International Monetary and Financial Committee and the Development Committee. The International Monetary and Financial Committee has 24 members and monitors developments in global liquidity and the transfer of resources to developing countries . The Development Committee has 25 members and advises on critical development issues and on financial resources required to promote economic development in developing countries. Innovative financing Innovative financing refers to
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#1732776886017972-565: Is also a platform for introducing new innovative financing mechanisms. LSL World Initiative is another company focusing on innovative financing. They assist governments to put in place micro-surcharges, taxes and public-private partnerships as mechanisms to raise additional funds and finance development projects. They focus specifically on the Information and communications technology (ICT) and telecoms sector, harnessing diaspora flows. Another example of innovative (ocean) financing ″is
1053-577: Is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate stability . Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade , promote high employment and sustainable economic growth, and reduce poverty around the world." Established in July of 1944 at the Bretton Woods Conference , primarily according to
1134-441: Is that private international capital markets function imperfectly and many countries have limited access to financial markets. Such market imperfections, together with balance-of-payments financing, provide the justification for official financing, without which many countries could only correct large external payment imbalances through measures with adverse economic consequences. The IMF provides alternate sources of financing such as
1215-520: The COVID-19 pandemic . This was in addition to the $ 50 billion fund it had announced two weeks earlier, of which $ 5 billion had already been requested by Iran . One day earlier on 11 March, the UK called to pledge £150 million to the IMF catastrophe relief fund. It came to light on 27 March that "more than 80 poor and middle-income countries" had sought a bailout due to the coronavirus. On 13 April 2020,
1296-793: The Cold War limited the Fund's membership, with most countries in the Soviet sphere of influence not joining until 1970s and 1980s. The Bretton Woods exchange rate system prevailed until 1971 when the United States government suspended the convertibility of the US$ (and dollar reserves held by other governments) into gold. This is known as the Nixon Shock . The changes to the IMF articles of agreement reflecting these changes were ratified in 1976 by
1377-632: The Great Depression , countries sharply raised barriers to trade in an attempt to improve their failing economies. This led to the devaluation of national currencies and a decline in world trade. This breakdown in international monetary cooperation created a need for oversight. The representatives of 45 governments met at the Bretton Woods Conference in the Mount Washington Hotel in Bretton Woods, New Hampshire , in
1458-494: The Jamaica Accords . Later in the 1970s, large commercial banks began lending to states because they were awash in cash deposited by oil exporters. The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance. In the mid-1980s, the IMF shifted its narrow focus from currency stabilization to
1539-562: The Poverty Reduction and Growth Facility . Upon the founding of the IMF, its three primary functions were: The IMF's role was fundamentally altered by the floating exchange rates after 1971. It shifted to examining the economic policies of countries with IMF loan agreements to determine whether a shortage of capital was due to economic fluctuations or economic policy. The IMF also researched what types of government policy would ensure economic recovery. A particular concern of
1620-830: The Special Data Dissemination Standard (SDDS). The executive board approved the SDDS and GDDS in 1996 and 1997, respectively, and subsequent amendments were published in a revised Guide to the General Data Dissemination System . The system is aimed primarily at statisticians and aims to improve many aspects of statistical systems in a country. It is also part of the World Bank Millennium Development Goals (MDG) and Poverty Reduction Strategic Papers (PRSPs) . The primary objective of
1701-458: The first Greek bailout that totaled €110 billion, to address the great accumulation of public debt, caused by continuing large public sector deficits. As part of the bailout, the Greek government agreed to adopt austerity measures that would reduce the deficit from 11% in 2009 to "well below 3%" in 2014. The bailout did not include debt restructuring measures such as a haircut , to the chagrin of
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#17327768860171782-415: The 1930s . The IMF formally came into existence on 27 December 1945, when the first 29 countries ratified its Articles of Agreement. By the end of 1946 the IMF had grown to 39 members. On 1 March 1947, the IMF began its financial operations, and on 8 May France became the first country to borrow from it. The IMF was one of the key organizations of the international economic system; its design allowed
1863-428: The 1940s and 1950s, and the recruitment of staff exposed to new thinking in economics. The IMF provided two major lending packages in the early 2000s to Argentina (during the 1998–2002 Argentine great depression ) and Uruguay (after the 2002 Uruguay banking crisis ). However, by the mid-2000s, IMF lending was at its lowest share of world GDP since the 1970s. In May 2010, the IMF participated, in 3:11 proportion, in
1944-435: The 2009 proceeds of these auctions to fund development activities. The development process of new innovative financing mechanisms has been improved thanks to the contribution of various players. Interagency initiatives such as The High Level Taskforce on Innovative International Financing for Health Systems and The Leading Group on Innovative Financing for Development have facilitated coordination processes between actors and
2025-524: The Code of Conduct in the IMF Articles of Agreement, and to provide national economic information. However, stricter rules were imposed on governments that applied to the IMF for funding. The countries that joined the IMF between 1945 and 1971 agreed to keep their exchange rates secured at rates that could be adjusted only to correct a "fundamental disequilibrium" in the balance of payments, and only with
2106-538: The Conference concluded with the adoption of the Doha Declaration on Financing for Development ( http://www.un.org/esa/ffd/doha/documents/Doha_Declaration_FFD.pdf ). The two key messages included in the document were a strong commitment by developed countries to maintain their Official Development Assistance (ODA) targets irrespective of the current financial crisis, and a decision to hold a UN Conference at
2187-712: The Director-General of WTO, the Secretary-General of UNCTAD and the Administrator of UNDP spoke at the opening. In their statements, Member States took stock of the progress made in the implementation of the Monterrey Consensus, identified obstacles and constraints encountered and put forward ideas and proposals to overcome these difficulties. Many statements focused on the consequences of the global financial crisis for development and
2268-639: The GAVI Alliance (formerly the Global Alliance for Vaccines and Immunisation). Since IFFIm's founding in 2006, it has provided close to half of GAVI's overall funding. The Pneumococcal Advance Market Commitment (AMC) is a mechanism that supports the work of the GAVI Alliance by providing a financial incentive to manufacturers to invest in R&;D and expand manufacturing capacity for new vaccines. Governments or organizations commit to buy or subsidize
2349-467: The GDDS is to encourage member countries to build a framework to improve data quality and statistical capacity building to evaluate statistical needs, set priorities in improving timeliness, transparency , reliability, and accessibility of financial and economic data. Some countries initially used the GDDS, but later upgraded to SDDS. Some entities that are not IMF members also contribute statistical data to
2430-523: The IMF in 1980 after losing the support of the then United States President Jimmy Carter and was replaced by the People's Republic of China . However, "Taiwan Province of China" is still listed in the official IMF indices. Poland withdrew in 1950—allegedly pressured by the Soviet Union —but returned in 1986. The former Czechoslovakia was expelled in 1954 for "failing to provide required data" and
2511-609: The IMF is Bulgarian economist Kristalina Georgieva , who has held the post since 1 October 2019. Indian-American economist Gita Gopinath , previously the chief economist, was appointed as first deputy managing director, effective 21 January 2022. Pierre-Olivier Gourinchas was appointed chief economist on 24 January 2022. According to the IMF itself, it works to foster global growth and economic stability by providing policy advice and financing to its members. It also works with developing countries to help them achieve macroeconomic stability and reduce poverty. The rationale for this
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2592-425: The IMF is part, are joint managers of this programme, which was approved by the executive directors of the IMF on 15 March 2012 for XDR 23.8 billion and saw private bondholders take a haircut of upwards of 50%. In the interval between May 2010 and February 2012 the private banks of Holland, France, and Germany reduced exposure to Greek debt from €122 billion to €66 billion. As of January 2012 ,
2673-500: The IMF said that it "would provide immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT)" programme. Not all member countries of the IMF are sovereign states, and therefore not all "member countries" of the IMF are members of the United Nations. Amidst "member countries" of the IMF that are not member states of the UN are non-sovereign areas with special jurisdictions that are officially under
2754-537: The IMF was to prevent financial crises, such as those in Mexico in 1982, Brazil in 1987, the 1997 Asian financial crisis , and the 1998 Russian financial crisis , from spreading and threatening the entire global financial and currency system. The challenge was to promote and implement a policy that reduced the frequency of crises among emerging market countries, especially the middle-income countries which are vulnerable to massive capital outflows. Rather than maintaining
2835-551: The IMF's agreement. Member countries of the IMF have access to information on the economic policies of all member countries, the opportunity to influence other members' economic policies, technical assistance in banking, fiscal affairs, and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade and investment. The board of governors consists of one governor and one alternate governor for each member country. Each member country appoints its two governors. The Board normally meets once
2916-509: The Implementation of the Monterrey Consensus (Doha, Qatar, 28 November – 2 December 2008) was attended by some 40 Heads of State or Government, 9 Deputy Heads of State or Government, 50 ministers and 17 vice-ministers of foreign affairs, finance, development cooperation and trade, as well as other high-level officials of 170 States and major institutional stakeholders. Doha Declaration Following intense intergovernmental negotiations,
2997-717: The Netherlands, the President of Tanzania. Source: http://www.un.org/esa/desa/desaNews/v13n01/global.html#Doha For more information: http://www.un.org/esa/ffd/doha/index.htm Press and NGO reactions to the Doha Conference The press noted that few leaders of Western countries attended the meeting. The meeting was also marked by the absence of the heads of the Bretton Woods institutions (World Bank and IMF). The United States aid chief still thought
3078-489: The Rapid Financing Instrument (RFI) to members facing urgent balance-of-payments needs. The IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its member countries. Accurate estimations require a degree of participatory surveillance. Market sizes and economic facts are estimated using member-state data, shared and verifiable by
3159-486: The Swiss, Brazilian, Indian, Russian, and Argentinian Directors of the IMF, with the Greek authorities themselves (at the time, PM George Papandreou and Finance Minister Giorgos Papakonstantinou ) ruling out a haircut. A second bailout package of more than €100 billion was agreed upon over the course of a few months from October 2011, during which time Papandreou was forced from office. The so-called Troika , of which
3240-671: The US has ignored the Monterrey Consensus because the amount of US official development assistance (0.18% of its gross domestic product in 2008), is still well below the 0.7% target, which it endorsed in the Consensus. It is much lower than some other developed countries, especially those in Northern Europe. The United Kingdom, for example, reached its target of giving at least 0.7% of GNI in official aid in 2014. The Follow-up International Conference on Financing for Development to Review
3321-487: The United States and the European Union and other countries were made at the conference. Countries also reached agreements on other issues, including debt relief, fighting corruption, and policy coherence. Since its adoption the Monterrey Consensus has become the major reference point for international development cooperation. The document embraces six areas of Financing for Development: Some critics suggest that
Monterrey Consensus - Misplaced Pages Continue
3402-405: The United States, to discuss a framework for postwar international economic cooperation and how to rebuild Europe. There were two views on the role the IMF should assume as a global economic institution. American delegate Harry Dexter White foresaw an IMF that functioned more like a bank, making sure that borrowing states could repay their debts on time. Most of White's plan was incorporated into
3483-642: The budget allocated for the social, and especially the Health sector, has been insufficient as it fails to meet the 15% Gross National Product (GNP) requirement dedicated to the Health Sector stated in the Abuja declaration of African leaders in 2001. Innovative financing mechanisms emerged at the beginning of the twenty-first century as alternative mechanisms to help bridge the development financing gap. Innovative financing mechanisms can be assessed regarding
3564-491: The business sector. Pre-conference events The Conference was preceded by a high-level retreat on the global financial crisis, hosted on 28 November by the Secretary-General of the United Nations and the Emir of Qatar. The retreat was attended by some 30 Heads of State or Government and ministers from both developed and developing countries, as well as high-level representatives of the major institutional stakeholders. The retreat
3645-572: The commitment of the debtor to invest an agreed-upon amount on Global Fund-approved programs. So far, €200 million has been pledged by the end of 2009 and €50 million had been disbursed in October 2008. Voluntary Contributions on travel and tourism products funds are collected by the Millennium Foundation through a donation to MASSIVEGOOD which lets travellers make an optional $ 2, £2 or €2 "micro-contribution" every time they purchase
3726-573: The commitments that they have made. Complementarity : The role of innovative financing mechanisms is to raise new funds for existing organizations and not to add new actors and complexities to the development landscape. Sustainability : In order to have a significant and sustainable impact on the MDG's, innovative financing mechanisms should have the objective and ability to finance long-term programs in coordination with other countries. Finally, innovative financing mechanisms should be designed to comply with
3807-420: The consequences of these policies for other countries and for the global economy . For instance, The IMF played a significant role in individual countries, such as Armenia and Belarus, in providing financial support to achieve stabilization financing from 2009 to 2019. The maximum sustainable debt level of a polity, which is watched closely by the IMF, was defined in 2011 by IMF economists to be 120%. Indeed, it
3888-452: The country will be able to rectify its macroeconomic and structural imbalances. In the judgment of the IMF, the adoption by the member of certain corrective measures or policies will allow it to repay the IMF, thereby ensuring that the resources will be available to support other members. As of 2004 , borrowing countries have had a good track record for repaying credit extended under the IMF's regular lending facilities with full interest over
3969-418: The detriment of others because they do not bear the full consequences of their actions—is mitigated through conditions rather than providing collateral; countries in need of IMF loans do not generally possess internationally valuable collateral anyway. Conditionality also reassures the IMF that the funds lent to them will be used for the purposes defined by the Articles of Agreement and provides safeguards that
4050-438: The duration of the loan. This indicates that IMF lending does not impose a burden on creditor countries, as lending countries receive market-rate interest on most of their quota subscription, plus any of their own-currency subscriptions that are loaned out by the IMF, plus all of the reserve assets that they provide the IMF. The IMF was originally laid out as a part of the Bretton Woods system exchange agreement in 1944. During
4131-565: The end of March 2014, the IMF secured an $ 18 billion bailout fund for the provisional government of Ukraine in the aftermath of the Revolution of Dignity . In late 2019, the IMF estimated global growth in 2020 to reach 3.4%, but due to the coronavirus, in November 2020, it expected the global economy to shrink by 4.4%. In March 2020, Kristalina Georgieva announced that the IMF stood ready to mobilize $ 1 trillion as its response to
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#17327768860174212-455: The final acts adopted at Bretton Woods. British economist John Maynard Keynes , on the other hand, imagined that the IMF would be a cooperative fund upon which member states could draw to maintain economic activity and employment through periodic crises. This view suggested an IMF that helped governments and act as the United States government had during the New Deal to the great depression of
4293-450: The following principles: Scaling-up : Innovative financing mechanisms should significantly increase funding in order to bridge the financing gap necessary to achieve the MDGs. Additionality : Since these mechanisms were created to fill this gap, innovative financing mechanisms cannot replace Official Development Assistance nor will they be sufficient if certain countries decide to renounce
4374-422: The form of policy reform. If the conditions are not met, the funds are withheld. The concept of conditionality was introduced in a 1952 executive board decision and later incorporated into the Articles of Agreement. Conditionality is associated with economic theory as well as an enforcement mechanism for repayment. Stemming primarily from the work of Jacques Polak , the theoretical underpinning of conditionality
4455-453: The highest level on the impact of the current financial and economic crisis on development. Other main highlights of the Doha Declaration are: Domestic resource mobilization : the importance of national ownership of development strategies and of an inclusive financial sector, as well as the need for strong policies on good governance, accountability, gender equality and human development. Mobilizing international resources for development :
4536-427: The ideas of Harry Dexter White and John Maynard Keynes , it started with 29 member countries and the goal of reconstructing the international monetary system after World War II . In its early years, the IMF primarily focused on facilitating fixed exchange rates across the developed world. It now plays a central role in the management of balance of payments difficulties and international financial crises. Through
4617-654: The issuing of Blue Bonds by the Government of the Seychelles , an innovative approach to promote the African islands’ Blue Economy ( The Blue Economy ) investment strategy.″ The intention of the bond is to finance and enhance the local fishery management in order to secure the marine ecosystem. Key publications have helped shaping the Innovative Financing framework. Among these key publications are:
4698-544: The largest borrowers from the IMF in order were Greece, Portugal, Ireland, Romania, and Ukraine. On 25 March 2013, a €10 billion international bailout of Cyprus was agreed by the Troika , at the cost to the Cypriots of its agreement: to close the country's second-largest bank ; to impose a one-time bank deposit levy on Bank of Cyprus uninsured deposits. No insured deposit of €100k or less were to be affected under
4779-528: The mechanism, global companies contribute a share of their profits on goods from sales branded with the Product Red trademark. Debt2Health is a mechanism supporting the Global Fund to fight HIV/AIDS, Tuberculosis and Malaria. Through this mechanism, the Global Fund facilitates debt negotiation between creditors and debtors. Creditors agree to forgo part of the repayment of the money due to them against
4860-842: The meeting was worthwhile, and welcomed the outcome. Other, such as the Eurodad network criticised it. The Third International Conference on Financing for Development was held in Addis Ababa from 13 to 16 July 2015. It adopted the Addis Ababa Action Agenda (AAAA). International Monetary Fund The International Monetary Fund ( IMF ) is a major financial agency of the United Nations , and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C. It
4941-512: The need for bold and urgent measures to address them. Much attention was also devoted to the food and energy crises and to the untapped potential of innovative sources of finance. Amb. Oscar de Rojas, a former Venezuelan diplomat and Director of the U.N.'s Financing for Development Office, served as Executive Secretary of both the Doha and Monterrey conferences. Round tables Six interactive multi-stakeholder round tables were held concurrently with
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#17327768860175022-460: The need to improve the enabling environment and to expand the reach of private flows to a greater number of developing countries. International trade as an engine for development : the importance of concluding the Doha round of multilateral trade negotiations as soon as possible. External debt : the need to strengthen crisis prevention mechanisms and to consider enhanced approaches for debt restructuring mechanisms. Addressing systemic issues :
5103-479: The need to review existing global economic governance arrangements, with a view to comprehensive reforms of the international financial system and institutions. Plenary meetings The Conference was chaired by the Emir of Qatar and included seven plenary meetings. A total of 133 Governments made statements to the plenary. The Secretary-General of the United Nations, the President of the General Assembly,
5184-428: The organization's conditional loans. During the 20th century, the IMF shifted its position on capital controls. Whereas the IMF permitted capital controls at its founding and throughout the 1970s, IMF staff increasingly favored free capital movement from 1980s onwards. This shift happened in the aftermath of an emerging consensus in economics on the desirability of free capital movement, retirement of IMF staff hired in
5265-491: The organization's other member-states. This transparency is intended to facilitate international co-operation and trade. Since the demise of the Bretton Woods system of fixed exchange rates in the early 1970s, surveillance has evolved largely by way of changes in procedures rather than through the adoption of new obligations. The Fund typically analyses the appropriateness of each member country's economic and financial policies for achieving orderly economic growth, and assesses
5346-438: The other principles of the 2005 Paris Declaration on Aid Effectiveness and the 2008 Accra Agenda for Action. Unitaid , an international facility for the purchase of drugs against HIV/AIDS, Malaria and Tuberculosis, is supported by a so-called "air ticket solidarity levy," or a tax on airline tickets. As of 2009, 13 countries apply such a domestic tax on airline tickets. UNITAID funds projects through implementing partners across
5427-765: The plenary meetings, centering on the six thematic areas of the Monterey Consensus. Each round table was co-chaired by two Heads of State or Government and ministers from developing and developed countries and moderated by a high-level official of the major institutional stakeholders. Panelists included HRH Princess Maxima of the Netherlands; S-G’s Special Envoys for the Conference, Mr. Trevor Manuel, South African Finance Minister and Ms. Heidemarie Weiczorek-Zeul, German Minister for Development Cooperation. Following presentations by panelists, interactive discussions took place among representatives of Member States, inter-governmental organizations, UN agencies, civil society and
5508-531: The purchase of a certain number of vaccines at a given price. The AMC has been implemented for pneumococcal vaccines to demonstrate both the feasibility of the AMC mechanism and its impact on accelerating the introduction and mass-production of these vaccines. As of summer 2012, the AMC had supported the introduction of pneumococcal vaccine in 17 developing countries. Product RED is a mechanism supporting The Global Fund to Fight AIDS, Tuberculosis and Malaria . Thanks to
5589-409: The sovereignty of full UN member states, such as Aruba , Curaçao , Hong Kong , and Macao , as well as Kosovo . The corporate members appoint ex-officio voting members, who are listed below . All members of the IMF are also International Bank for Reconstruction and Development (IBRD) members and vice versa. Former members are Cuba (which left in 1964), and Taiwan , which was ejected from
5670-416: The system to balance the rebuilding of international capitalism with the maximization of national economic sovereignty and human welfare, also known as embedded liberalism . The IMF's influence in the global economy steadily increased as it accumulated more members. Its membership began to expand in the late 1950s and during the 1960s as many African countries became independent and applied for membership. But
5751-455: The systems: A 2021 study found that the IMF's surveillance activities have "a substantial impact on sovereign debt with much greater impacts in emerging than high-income economies". IMF conditionality is a set of policies or conditions that the IMF requires in exchange for financial resources. The IMF does require collateral from countries for loans but also requires the government seeking assistance to correct its macroeconomic imbalances in
5832-597: The terms of a novel bail-in scheme. The topic of sovereign debt restructuring was taken up by the IMF in April 2013, for the first time since 2005, in a report entitled "Sovereign Debt Restructuring: Recent Developments and Implications for the Fund's Legal and Policy Framework". The paper, which was discussed by the board on 20 May, summarised the recent experiences in Greece, St Kitts and Nevis, Belize, and Jamaica. An explanatory interview with deputy director Hugh Bredenkamp
5913-490: The three diseases based on the market impact criteria (making medication prices affordable for developing countries). The International Finance Facility for Immunisation (IFFIm) issues bonds in the capital markets, converting long-term government pledges into immediately available cash resources. The pledges are used to repay IFFIm bondholders. So far, IFFIm has raised US$ 3.7 billion in the bonds markets backed by US$ 6.3 billion in government pledges. These funds are collected for
5994-417: The year 2015. They include reducing extreme poverty, reducing child mortality rates, improving maternal health and combating HIV/AIDS , Malaria and other diseases such as Tuberculosis . So far, most donor states have failed to meet their 0.7% commitment from the Monterrey Consensus of their Gross National Income (GNI) dedicated to Official Development Assistance . Furthermore, in most developing countries
6075-608: Was at this number that the Greek government-debt crisis started in 2010. In 1995, the International Monetary Fund began to work on data dissemination standards with the view of guiding IMF member countries to disseminate their economic and financial data to the public. The International Monetary and Financial Committee (IMFC) endorsed the guidelines for the dissemination standards and they were split into two tiers: The General Data Dissemination System (GDDS) and
6156-450: Was attended by more than 200 participants from the private sector. Side events More than 50 side events took place at the Conference site. In the spirit of Monterrey, the organizers were Governments, inter-governmental and non-governmental organizations and the business sector. The issues of inclusive and innovative financing for development featured prominently in several side events. High-level speakers included: HRH Princess Maxima of
6237-769: Was first mentioned and introduced at the International Conference on Financing for Development in 2002. The Conference led to what is now called the Monterrey Consensus where signatories acknowledged "…the value of exploring innovative sources of finance provided that those sources do not unduly burden developing countries." Innovative financing mechanisms were born out of a need to reach the Millennium Development Goals (MDGs) that 192 United Nations member states and at least 23 international organizations agreed to achieve by
6318-525: Was meant to serve as a “bridge” between the discussions on the financial crisis that had taken place among smaller groups of countries and the wider membership of the United Nations. A Global Forum of Civil Society was held from 26 to 27 November on the theme “Investing in people-centered development” and attracted participation of more than 250 civil society organizations and networks. In addition, an International Business Forum, held on 28 November focused on mobilizing private sector resources for development and
6399-433: Was published a few days later, as was a deconstruction by Matina Stevis of The Wall Street Journal . In the October 2013, Fiscal Monitor publication, the IMF suggested that a capital levy capable of reducing Euro-area government debt ratios to "end-2007 levels" would require a very high tax rate of about 10%. The Fiscal Affairs department of the IMF, headed at the time by Acting Director Sanjeev Gupta, produced
6480-590: Was readmitted in 1990, after the Velvet Revolution . Apart from Cuba, the other UN states that do not belong to the IMF are Monaco and North Korea . Liechtenstein became the 191st member on 21 October 2024. Any country may apply to be a part of the IMF. Post-IMF formation, in the early postwar period, rules for IMF membership were left relatively loose. Members needed to make periodic membership payments towards their quota, to refrain from currency restrictions unless granted IMF permission, to abide by
6561-584: Was the "monetary approach to the balance of payments". Some of the conditions for structural adjustment can include: These conditions are known as the Washington Consensus . These loan conditions ensure that the borrowing country will be able to repay the IMF and that the country will not attempt to solve their balance-of-payment problems in a way that would negatively impact the international economy . The incentive problem of moral hazard —when economic agents maximise their own utility to
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