The IMF's Development Of Global Financial Systems

The IMF (International monetary fund) oversees global financial systems following macro-economic member country policies that have an impact on exchange rates and payment balances. It is an organization with a goal to stabilize exchange rates internationally to facilitate development.
Poorer countries are offered loans of high leverage.

Initially created in July 1944 at the United Nations Monetar y and financial conference it consisted of 45 members with the goal of exchange rate stabilization and assistance toward the reconstruction of international payments.45 government representatives met in Bretton Woods at Mount Washington hotel in New Hampshire in the USA. The delegates at the conference agreed on an international co-operation economic framework.On 27 December 1945 the articles of agreement was signed by 29 countries

Contributions from countries formed a pool of available temporary loans to countries with imbalances of payment.The IMF assisted the economic system stabilization. With a total membership of 186 countries the IMF serves the purpose of monetary co-operation globally, financial stability , the facilitation of international trade and employment, economic growth, sustainability promotion and the reduction of poverty.IMFÕs membership expansion reflected political independence attained by developing countries a well as the Soviet Union bloc.

World economy changes and membership expansion required International Monetary Fund adaptation to effectively serve its purposes. The 2008 revenue shortfall resulted in an agreement by the executive board to sell the gold reserves of the IMF.The proposal of a new framework of the IMF was welcomed by Dominique Strauss Kahn the managing director of the IMF in order to close the $400 million projected deficit over the few years ahead. The proposals included the $100 million spending cuts until 2011 and staff dismissals. The G20 London summit in 2009 concluded that the IMF needed additional financial resources for meeting the needs of member countries in the ongoing financial crisis globally.G-20 leader pledged an increase in supplement cash of $500 billion and allocation of $250 billion to member countries through special drawing rights.

The latest report released by the International Monetary Fund stated that global recovery is stronger than it was expected but financial conditions are more difficult and the expected recovery is predicted to be slow and remain fragile. The 2010 output globally, is expected to rise 3.9%. This is higher than the prior October rise estimate of 3.1%.There will be a weak recovery in the biggest economies of the world according to historical standards. The IMF stated that the growth in developing and emerging economies is expected to be more vigorous.