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Poverty Reduction and Growth Facility

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113-580: (Redirected from PRGF ) [REDACTED] This article needs additional citations for verification . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed. Find sources:   "Poverty Reduction and Growth Facility"  –  news   · newspapers   · books   · scholar   · JSTOR ( October 2021 ) ( Learn how and when to remove this message ) The Poverty Reduction and Growth Facility (PRGF)

226-674: A "systemic failure". In 2010, the organization suffered the worst loss of life in its history, when 101 personnel died in the Haiti earthquake . Acting under the United Nations Security Council Resolution 1973 in 2011, NATO countries intervened in the First Libyan Civil War . The Millennium Summit was held in 2000 to discuss the UN's role in the 21st century. The three-day meeting was

339-434: 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

452-621: A UN official, negotiated an armistice to the resulting conflict , with the Security Council deciding that “an armistice shall be established in all sectors of Palestine”. On 7 November 1956, the first UN peacekeeping force was established to end the Suez Crisis ; however, the UN was unable to intervene against the Soviet Union's simultaneous invasion of Hungary , following the country's revolution . On 14 July 1960,

565-483: 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

678-532: A central role in the management of balance of payments difficulties and international financial crises. Through 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

791-481: A conference and initialised the drafting of the UN Charter , which was adopted on 25 June 1945. The charter took effect on 24 October 1945, when the UN began operations. The UN's objectives, as outlined by its charter, include maintaining international peace and security, protecting human rights , delivering humanitarian aid , promoting sustainable development , and upholding international law . At its founding,

904-1013: A myriad of autonomous, separately administered funds, programmes, research and training institutes, and other subsidiary bodies . Each of these entities have their own area of work, governance structure, and budgets such as the World Trade Organization (or the WTO) and the International Atomic Energy Agency (or the IAEA), operate independently of the UN but maintain formal partnership agreements. The UN performs much of its humanitarian work through these institutions, such as preventing famine and malnutrition (the World Food Programme ), protecting vulnerable and displaced people (the UNHCR ), and combating

1017-547: A permanent member to block adoption of a resolution, though not debate. The ten temporary seats are held for two-year terms, with five members elected each year by the General Assembly on a regional basis . The presidency of the Security Council rotates alphabetically each month. The UN Secretariat carries out the day-to-day duties required to operate and maintain the UN system. It is composed of tens of thousands of international civil servants worldwide and headed by

1130-606: A plane crash . Months later he was posthumously awarded the Nobel Peace Prize . In 1964, Hammarskjöld's successor, U Thant , deployed the UN Peacekeeping Force in Cyprus , which would become one of the UN's longest-running peacekeeping missions. With the spread of decolonization in the 1960s, the UN's membership shot up due to an influx of newly independent nations. In 1960 alone, 17 new states joined

1243-487: 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

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1356-445: A two-thirds majority of those present and voting is required. All other questions are decided by a majority vote. Each member has one vote. Apart from the approval of budgetary matters, resolutions are not binding on the members. The Assembly may make recommendations on any matters within the scope of the UN, except matters of peace and security that are under consideration by the Security Council. Draft resolutions can be forwarded to

1469-889: A wide variety of complex tasks. The UN comprises six principal operational organizations: the General Assembly , the Security Council , the Economic and Social Council , the International Court of Justice , the UN Secretariat , and the Trusteeship Council , although the Trusteeship Council has been suspended since 1994. The UN System includes a multitude of specialized agencies , funds, and programmes, including

1582-1033: A wide variety of topics. These include the United Nations Permanent Forum on Indigenous Issues , which advises UN agencies on issues relating to indigenous peoples , the United Nations Forum on Forests , which coordinates and promotes sustainable forest management, the United Nations Statistical Commission , which co-ordinates information-gathering efforts between agencies, and the Commission on Sustainable Development , which co-ordinates efforts between UN agencies and NGOs working towards sustainable development . ECOSOC may also grant consultative status to non-governmental organizations. as of April 2021 almost 5,600 organizations have this status. The UN Charter stipulates that each primary organ of

1695-503: 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

1808-549: Is a diplomatic and political international organization with the intended purpose of maintaining international peace and security , developing friendly relations among nations, achieving international cooperation, and serving as a center for coordinating the actions of member nations. It is widely recognised as the world's largest international organization. The UN is headquartered in New York City , in international territory with certain privileges extraterritorial to

1921-641: 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 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

2034-933: 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

2147-645: 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. United Nations The United Nations ( UN )

2260-707: Is an arm of the International Monetary Fund which lends to the world's poorest countries. It was created on September 16, 1999, replacing the Enhanced Structural Adjustment Facility . In 2009 the organization sold 212 metric tons of gold in separate off-market transactions and then gradually sold 191.3 tons of gold to fund the SDR 1¼ billion yearly lending program to the targeted nations. References [ edit ] ^ Shahwan, Najla (2 May 2022). "What's

2373-467: Is defined in the UN Charter as the organization's chief administrative officer. Article 99 of the charter states that the secretary-general can bring to the Security Council's attention "any matter which in their opinion may threaten the maintenance of international peace and security", a phrase that secretaries-general since Trygve Lie have interpreted as giving the position broad scope for action on

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2486-441: 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

2599-655: The Battle of Mogadishu . The UN mission to Bosnia faced worldwide ridicule for its indecisive and confused mission in the face of ethnic cleansing. In 1994, the UN Assistance Mission for Rwanda failed to intervene in the Rwandan genocide amidst indecision in the Security Council. From the late 1990s to the early 2000s, international interventions authorized by the UN took a wider variety of forms. The United Nations Security Council Resolution 1244 authorised

2712-520: 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,

2825-793: 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

2938-528: The Four Power Declaration on General Security which aimed for the creation "at the earliest possible date of a general international organization". This was the first public announcement that a new international organization was being contemplated to replace the League of Nations. The Tehran Conference followed shortly afterwards at which Roosevelt, Churchill and Joseph Stalin , the leader of

3051-708: 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

3164-540: The Group of 77 under the leadership of Algeria, which briefly became a dominant power at the UN. On 10 November 1975, a bloc comprising the Soviet Union and Third World nations passed a resolution , over strenuous American and Israeli opposition, declaring Zionism to be a form of racism . The resolution was repealed on 16 December 1991, shortly after the end of the Cold War. With an increasing Third World presence and

3277-472: The ICJ Statute , which forms an integral part of the UN Charter, and non-members may also become parties. The ICJ's rulings are binding upon parties and, along with its advisory opinions, serve as sources of international law . The court is composed of 15 judges appointed to nine-year terms by the General Assembly. Every sitting judge must be from a different nation. The Economic and Social Council (or

3390-494: 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

3503-528: The NATO -led Kosovo Force beginning in 1999. The UN mission in the Sierra Leone Civil War was supplemented by a British military intervention . The invasion of Afghanistan in 2001 was overseen by NATO. In 2003, the United States invaded Iraq despite failing to pass a UN Security Council resolution for authorization, prompting a new round of questioning of the UN's effectiveness. Under

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3616-820: The Paris Peace Conference . The League of Nations was approved and started operations, but the United States never joined. On 10 January 1920, the League of Nations formally came into being when the Covenant of the League of Nations , ratified by 42 nations in 1919, took effect. The League Council acted as an executive body directing the Assembly's business. It began with four permanent members—the United Kingdom , France , Italy , and Japan . After some limited successes and failures during

3729-562: 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

3842-830: 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

3955-753: The White House in December 1941 for the Arcadia Conference . Roosevelt is considered a founder of the UN, and coined the term United Nations to describe the Allied countries . Churchill accepted it, noting its use by Lord Byron . The text of the Declaration by United Nations was drafted on 29 December 1941, by Roosevelt, Churchill, and Harry Hopkins . It incorporated Soviet suggestions but included no role for France. One major change from

4068-646: The World Bank Group , the World Health Organization , the World Food Programme , UNESCO , and UNICEF . Additionally, non-governmental organizations may be granted consultative status with the Economic and Social Council and other agencies. The UN's chief administrative officer is the secretary-general , currently António Guterres , who is a Portuguese politician and diplomat. He began his first five-year term on 1 January 2017 and

4181-458: 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

4294-406: The secretary-general , who is assisted by the deputy secretary-general . The Secretariat's duties include providing information and facilities needed by UN bodies for their meetings and carrying out tasks as directed by the Security Council, the General Assembly, the Economic and Social Council, and other UN bodies. The secretary-general acts as the spokesperson and leader of the UN. The position

4407-702: The 1920s, the League proved ineffective in the 1930s, as it failed to act against the Japanese invasion of Manchuria in 1933. Forty nations voted for Japan to withdraw from Manchuria but Japan voted against it and walked out of the League instead of withdrawing from Manchuria. It also failed to act against the Second Italo-Ethiopian War , after the appeal for international intervention by Ethiopian Emperor Haile Selassie I at Geneva in 1936 went with no avail, including when calls for economic sanctions against Italy failed. Italy and other nations left

4520-415: 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

4633-428: 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

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4746-700: The Atlantic Charter was the addition of a provision for religious freedom , which Stalin approved after Roosevelt insisted. Roosevelt's idea of the " Four Powers ", refers to the four major Allied countries, the United States, the United Kingdom, the Soviet Union, and China , emerged in the Declaration by the United Nations. On New Year's Day 1942, Roosevelt, Churchill, the Soviet Union's former Foreign Minister Maxim Litvinov , and

4859-562: The Charter by the five permanent members of the Security Council : the United States, the United Kingdom, France, the Soviet Union and China — and by a majority of the other 46 nations. The first meetings of the General Assembly , with 51 nations represented, and the Security Council took place in London beginning in January 1946. Debates began at once, covering topical issues such as

4972-666: The Chinese Premier T. V. Soong signed the " Declaration by United Nations ", and the next day the representatives of twenty-two other nations added their signatures. During the war, the United Nations became the official term for the Allies. In order to join, countries had to sign the Declaration and declare war on the Axis powers . The October 1943 Moscow Conference resulted in the Moscow Declarations , including

5085-412: 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

5198-428: The ECOSOC) assists the General Assembly in promoting international economic and social co-operation and development. It was established to serve as the UN's primary forum for global issues and is the largest and most complex UN body. The ECOSOC's functions include gathering data, conducting studies and advising and making recommendations to member states. Its work is carried out primarily by subsidiary bodies focused on

5311-416: 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

5424-420: The General Assembly by its six main committees: As well as by the following two committees: The Security Council is charged with maintaining peace and security among nations. While other organs of the UN can only make recommendations to member states, the Security Council has the power to make binding decisions that member states have agreed to carry out, under the terms of Charter Article 25. The decisions of

5537-411: 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

5650-609: 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

5763-425: 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 ,

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5876-452: 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

5989-485: 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

6102-551: 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

6215-422: The League. When war broke out in 1939 , the League effectively closed down. The first step towards the establishment of the United Nations was the Inter-Allied Conference in London that led to the Declaration of St James's Palace on 12 June 1941. By August 1941, American President Franklin Roosevelt and British Prime Minister Winston Churchill had drafted the Atlantic Charter ; which defined goals for

6328-409: 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

6441-427: The Soviet Union, and the signing of the Korean Armistice Agreement on 27 July 1953. On 29 November 1947, the General Assembly approved resolution 181 , a proposal to partition Palestine into two state, with Jerusalem placed under a special international regime. The plan failed and a civil war broke out in Palestine, that led to the creation of the state of Israel afterward. Two years later, Ralph Bunche ,

6554-400: The Soviet Union, before all the issues were resolved. By 1 March 1945, 21 additional states had signed the Declaration by the United Nations. After months of planning, the UN Conference on International Organization opened in San Francisco on 25 April 1945. It was attended by 50 nations' governments and a number of non-governmental organizations. The delegations of the Big Four chaired

6667-451: The Soviet Union, met and discussed the idea of a post-war international organization. The new international organisation was formulated and negotiated amongst the delegations from the Allied Big Four at the Dumbarton Oaks Conference from 21 September to 7 October 1944. They agreed on proposals for the aims, structure and functioning of the new organization. It took the conference at Yalta in February 1945, and further negotiations with

6780-434: 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

6893-499: The UN authorized a US-led coalition that repulsed Iraq's invasion of Kuwait . Brian Urquhart , the under-secretary-general of the UN from 1971 to 1985, later described the hopes raised by these successes as a "false renaissance" for the organization, given the more troubled missions that followed. Beginning in the last decades of the Cold War , critics of the UN condemned the organization for perceived mismanagement and corruption. In 1984, American President Ronald Reagan withdrew

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7006-412: The UN established the United Nations Operation in the Congo (or UNOC), the largest military force of its early decades, to bring order to Katanga , restoring it to the control of the Democratic Republic of the Congo by 11 May 1964. While travelling to meet rebel leader Moise Tshombe during the conflict, Dag Hammarskjöld , often named as one of the UN's most effective secretaries-general, died in

7119-562: The UN had 51 member states ; as of 2024 , it has 193 sovereign states , nearly all of the world's recognized sovereign states. The UN's mission to preserve world peace was complicated in its initial decades due in part to Cold War tensions that existed between the United States and Soviet Union and their respective allies. Its mission has included the provision of primarily unarmed military observers and lightly armed troops charged with primarily monitoring, reporting and confidence-building roles. UN membership grew significantly following

7232-430: The UN itself and operate with almost complete independence from it". These include specialized agencies, research and training institutions, programmes and funds and other UN entities. All organizations in the UN system obey the Noblemaire principle , which calls for salaries that will attract and retain citizens of countries where compensation is highest, and which ensures equal pay for work of equal value regardless of

7345-446: The UN's focus on promoting development, peacekeeping, human rights and global security. The Sustainable Development Goals (or SDGs) were launched in 2015 to succeed the Millennium Development Goals. In addition to addressing global challenges, the UN has sought to improve its accountability and democratic legitimacy by engaging more with civil society and fostering a global constituency. In an effort to enhance transparency, in 2016

7458-405: The UN's primary mandate was peacekeeping , the division between the United States and the Soviet Union often paralysed the organization; generally allowing it to intervene only in conflicts distant from the Cold War . Two notable exceptions were a Security Council resolution on 7 July 1950 authorizing a US-led coalition to repel the North Korean invasion of South Korea , passed in the absence of

7571-420: The UN, 16 of them from Africa. On 25 October 1971, with opposition from the United States, but with the support of many Third World nations, the People's Republic of China was given the Chinese seat on the Security Council in place of the Republic of China (also known as Taiwan). The vote was widely seen as a sign of waning American influence in the organization. Third World nations organized themselves into

7684-580: The United Nations can establish various specialized agencies to fulfill its duties. Specialized agencies are autonomous organizations working with the United Nations and each other through the coordinating machinery of the Economic and Social Council. Each was integrated into the UN system through an agreement with the UN under UN Charter article 57. There are fifteen specialized agencies, which perform functions as diverse as facilitating international travel, preventing and addressing pandemics, and promoting economic development. The United Nations system includes

7797-421: The United States' funding from the United Nations Educational, Scientific and Cultural Organisation (or UNESCO) over allegations of mismanagement, followed by the United Kingdom and Singapore. Boutros Boutros-Ghali , the secretary-general from 1992 to 1996, initiated a reform of the Secretariat, somewhat reducing the size of the organisation. His successor, Kofi Annan , initiated further management reforms in

7910-436: The United States, and the UN has other offices in Geneva , Nairobi , Vienna , and The Hague , where the International Court of Justice is headquartered at the Peace Palace . The UN was established after World War II with the aim of preventing future world wars , and succeeded the League of Nations , which was characterized as being ineffective. On 25 April 1945, 50 nations assembled in San Francisco , California, for

8023-405: 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

8136-709: The assembly gathers at annual sessions at the General Assembly Hall , but emergency sessions can be summoned. The assembly is led by a president , elected by the member states on a rotating regional basis, and 21 vice-presidents. The first session convened on 10 January 1946 in the Methodist Central Hall in London and comprised representatives of 51 nations. When the General Assembly decides on seminal questions such as those on peace and security, admission of new members and budgetary matters,

8249-529: The basis of the Convention on the Privileges and Immunities of the United Nations , the UN and its agencies are immune from the laws of the countries where they operate, safeguarding the UN's impartiality with regard to host and member countries. Below the six organs are, in the words of the author Linda Fasulo, "an amazing collection of entities and organizations, some of which are actually older than

8362-649: The body's former headquarters in the Peace Palace in The Hague, Netherlands , making it the only principal organ not based in New York City. The ICJ's main function is adjudicating disputes among nations. Examples of issues they have heard include war crimes, violations of state sovereignty and ethnic cleansing. The court can also be called upon by other UN organs to provide advisory opinions on matters of international law. All UN member states are parties to

8475-622: The century prior to the UN's creation, several international organizations such as the International Committee of the Red Cross were formed to ensure protection and assistance for victims of armed conflict and strife. During World War I , several major leaders, especially U.S. President Woodrow Wilson , advocated for a world body to guarantee peace. The winners of the war, the Allies , met to decide on formal peace terms at

8588-420: 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

8701-592: The council are known as United Nations Security Council resolutions . The Security Council is made up of fifteen member states: five permanent members (China, France, Russia, the United Kingdom and the United States) and ten non-permanent members (currently Algeria , Ecuador , Guyana , Japan , Malta , Mozambique , the Republic of Korea , Sierra Leone , Slovenia and Switzerland ). The five permanent members hold veto power over UN resolutions, allowing

8814-452: 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

8927-418: 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

9040-438: 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

9153-883: The eighth secretary-general, Ban Ki-moon , the UN intervened with peacekeepers in crises such as the War in Darfur in Sudan and the Kivu conflict in the Democratic Republic of the Congo and sent observers and chemical weapons inspectors to the Syrian Civil War . In 2013, an internal review of UN actions in the final battles of the Sri Lankan Civil War in 2009 concluded that the organization had suffered

9266-500: The employee's nationality. In practice, the International Civil Service Commission , which governs the conditions of UN personnel, takes reference to the highest-paying national civil service. Staff salaries are subject to an internal tax that is administered by the UN organizations. The General Assembly is the primary deliberative assembly of the UN. Composed of all UN member states ,

9379-565: 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

9492-540: The face of threats from the US to withhold its UN dues. Though the UN Charter had been written primarily to prevent aggression by one nation against another, in the early 1990s the UN faced several simultaneous, serious crises within Somalia, Haiti, Mozambique, and the nations that previously made up Yugoslavia. The UN mission in Somalia was widely viewed as a failure after the United States' withdrawal following casualties in

9605-504: The failure of UN mediation in conflicts in the Middle East , Vietnam , and Kashmir , the UN increasingly shifted its attention to its secondary goals of economic development and cultural exchange. By the 1970s, the UN budget for social and economic development was far greater than its peacekeeping budget. After the Cold War, the UN saw a radical expansion in its peacekeeping duties, taking on more missions in five years than it had in

9718-455: 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

9831-659: The five principal organs are located at the main UN Headquarters in New York City, while the International Court of Justice is seated in The Hague . Most other major agencies are based in the UN offices at Geneva , Vienna , and Nairobi , and additional UN institutions are located throughout the world. The six official languages of the UN, used in intergovernmental meetings and documents, are Arabic , Chinese , English , French , Russian and Spanish . On

9944-422: 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

10057-951: The goal of IMF's new fund for low-income countries?" . Daily Sabah. Archived from the original on 4 May 2022 . Retrieved 18 January 2023 . ^ International Monetary Fund. (16 March 2021). "Factsheet: Gold in the IMF". IMF website Retrieved 20 June 2021. External links [ edit ] IMF Factsheet: The Poverty Reduction and Growth Facility Retrieved from " https://en.wikipedia.org/w/index.php?title=Poverty_Reduction_and_Growth_Facility&oldid=1153256802 " Categories : 1999 establishments 1999 introductions International Monetary Fund International finance International development Intergovernmental organizations Global policy organizations Hidden categories: Articles needing additional references from October 2021 All articles needing additional references International Monetary Fund The International Monetary Fund ( IMF )

10170-544: 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

10283-481: The largest gathering of world leaders in history, and it culminated in the adoption by all member states of the Millennium Development Goals (or MDGs), a commitment to achieve international development in areas such as poverty reduction , gender equality and public health . Progress towards these goals, which were to be met by 2015, was ultimately uneven. The 2005 World Summit reaffirmed

10396-461: The organization are five principal organs established by the UN Charter: the General Assembly , the Security Council , the Economic and Social Council , the International Court of Justice and the UN Secretariat . A sixth principal organ, the Trusteeship Council , suspended its operations on 1 November 1994 upon the independence of Palau ; the last remaining UN trustee territory. Four of

10509-506: The organization held its first public debate between candidates for secretary-general. On 1 January 2017, Portuguese diplomat António Guterres , who had previously served as the UN High Commissioner for Refugees , became the ninth secretary-general. Guterres has highlighted several key goals for his administration, including an emphasis on diplomacy for preventing conflicts, more effective peacekeeping efforts, and streamlining

10622-482: The organization to be more responsive and versatile to international needs. On 13 June 2019, the UN signed a Strategic Partnership Framework with the World Economic Forum in order to "jointly accelerate" the implementation of the 2030 Agenda for Sustainable Development . The United Nations is part of the broader UN System, which includes an extensive network of institutions and entities. Central to

10735-428: 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

10848-491: 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

10961-524: The plenary meetings. Previously, Churchill had urged Roosevelt to restore France to its status of a major power after the liberation of Paris in August 1944. The drafting of the Charter of the United Nations was completed over the following two months, and it was signed on 26 June 1945 by the representatives of the 50 countries. The UN officially came into existence on 24 October 1945, upon ratification of

11074-553: The post, but over the years it has become accepted that the position shall be held for one or two terms of five years. The current secretary-general is António Guterres of Portugal, who replaced Ban Ki-moon in 2017. The International Court of Justice (or ICJ), sometimes known as the World Court, is the primary judicial organ of the UN. It is the successor to the Permanent Court of International Justice and occupies

11187-600: The post-war world. At the subsequent meeting of the Inter-Allied Council in London on 24 September 1941, the eight governments in exile of countries under Axis occupation , together with the Soviet Union and representatives of the Free French Forces , unanimously adopted adherence to the common principles of policy set forth by Britain and the United States. Roosevelt and Churchill met at

11300-560: The presence of Russian troops in Iranian Azerbaijan and British forces in Greece . British diplomat Gladwyn Jebb served as interim secretary-general. The General Assembly selected New York City as the site for the headquarters of the UN. Construction began on 14 September 1948 and the facility was completed on 9 October 1952. The Norwegian Foreign Minister, Trygve Lie , was the first elected UN secretary-general . Though

11413-532: The previous four decades. Between 1988 and 2000, the number of adopted Security Council resolutions more than doubled, and the peacekeeping budget increased by more than tenfold. The UN negotiated an end to the Salvadoran Civil War , launched a successful peacekeeping mission in Namibia , and oversaw democratic elections in post- apartheid South Africa and post- Khmer Rouge Cambodia. In 1991,

11526-409: 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

11639-416: 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

11752-455: 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

11865-597: 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

11978-416: The widespread decolonization in the 1960s. Since then, 80 former colonies have gained independence, including 11 trust territories that had been monitored by the Trusteeship Council . By the 1970s, the UN's budget for economic and social development programmes vastly exceeded its spending on peacekeeping . After the end of the Cold War in 1991, the UN shifted and expanded its field operations, undertaking

12091-404: The world stage. The office has evolved into a dual role of an administrator of the UN organization and a diplomat and mediator addressing disputes between member states and finding consensus to global issues . The secretary-general is appointed by the General Assembly, after being recommended by the Security Council, where the permanent members have veto power. There are no specific criteria for

12204-464: The world." Established in July of 1944 at the Bretton Woods Conference , primarily according to 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

12317-608: 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

12430-488: 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

12543-447: Was re-elected on 8 June 2021. The organization is financed by assessed and voluntary contributions from its member states. The UN, its officers, and its agencies have won multiple Nobel Peace Prizes , although other evaluations of its effectiveness have been contentious. Some commentators believe the organization to be a leader in peace and human development, while others have criticized it for ineffectiveness, bias, and corruption . In

12656-590: 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

12769-584: 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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