The International Monetary Fund (IMF) is an international financial institution established in 1944 as part of the [[Bretton Woods]] Agreement. Its primary purpose is to ensure the stability of the international monetary system, promote global economic growth, and reduce poverty. The IMF's headquarters are in Washington, D.C., United States, and it currently has 190 member countries. ## IMF main functions 1. **Surveillance**: The IMF monitors the global economy and the economic policies of its member countries to identify potential risks and provide policy advice. This [[surveillance]] process aims to maintain macroeconomic stability and prevent financial crises. 2. **Financial assistance**: The IMF provides financial support to member countries facing balance-of-payments problems or [economic](https://doctorparadox.net/category/economics/) crises. This assistance, usually in the form of loans, helps countries stabilize their economies, restore growth, and repay external debts. In exchange for financial support, borrowing countries must implement economic reforms and adhere to specific policy conditions. 3. **Technical assistance and capacity building**: The IMF offers technical assistance and training to help member countries strengthen their economic institutions, improve governance, and develop effective policies. This assistance covers areas such as fiscal management, monetary policy, financial sector regulation, and economic statistics. 4. **Special Drawing Rights (SDR)**: The SDR is an international reserve asset created by the IMF to supplement its member countries' official reserves. It can be used to settle international transactions and provide liquidity during financial crises. The value of the SDR is based on a basket of major currencies, including the U.S. dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling. ## IMF governance The IMF is governed by a Board of Governors, with one representative from each member country, and a 24-member Executive Board, which is responsible for day-to-day operations. The Managing Director, elected for a renewable five-year term, leads the institution and is responsible for overseeing the staff and implementing policies. While the IMF has played a significant role in managing global economic crises and promoting macroeconomic stability, it has also faced criticism for its policy prescriptions, which some argue can lead to austerity, increased inequality, and social unrest. In response to these concerns, the IMF has evolved over time, placing greater emphasis on social protection, inclusive growth, and financial stability. See also: [[World War II Timeline]], [[fiscal policy vs. monetary policy]]