IMF Case Studies

• When was it founded

  Founded in 1944  at Brenton Woods in US
• Where is it's headquarters?

  Washington D.C
• How is it funded?

  Each state contributes to finance IMF through a system based on state's relative size in global economy
• Who is current managing director?

  Kristalina Georgiva (Bulgaria)
• Key Aims of IMF

  1. Promote international monetary cooperation and exchange rate stability
  2. Facilitate the expansion and balanced growth of international trade
  3. Assist in the establishment of multi-lateral system of payments
  4. Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties!!!!!
• #1 Role of IMF

  1. Surveillance

  • Provides regular economic health checks for member states (Article IV consultations)
  • Highlighting possible risks to stability
  • Advising on policy adjustments
• #2 Role of IMF

  Capacity Development

  • Provides technical assistance/ training
  • Enables member states to design and implement economic policies for stability and growth
• Challenge to Georgia

  • Since 2014, Georgia has faced external pressure to economic stability
  • Pressure on currency + loweer global oil/commodity prices which has meant a decrease in revenue from their exports
• Approach to Georgia

  • NBG (National Bank of Georgia) has undertaken number of reforms based on advice from IMF
  • April 2015, Georgia and IMF worked to together to strengthen central bank financial reporting + risk management work
  • Developed set of stronger risk management policies in line with global standards
  • More effectively integrate strategic considerations in NBG's yearly budget
• Impact on Georgia

  • NBG has joined 'International Operational Risk Working Group' which are worldwide banks that share best practices on risk management
  • Established ongoing relationship between Georgia’s and the Netherlands’ central banks, so the NBG could learn from an advanced European central banking system.
  • Enhanced the NBG’s reputation as a governance role model for other central banks
• Argentina Case Study


  • Argentina has participates in 21 IMF loan arrangements since becoming a member in 1956
  • Received a $57 billion loan from the IMF in $2018 - the largest single issued in IMF history
  • Argentina has since struggled to pay bck regular instalments of this loan and has not unilaterally resolved ongoing economic woes
  • Inflation has now risen above 250%
• When is IMF most powerful?

  • Lending to member states
  • Conducted on a conditional basis, meaning that the borrowing state must agree to certain obligations or requirements before the loan is distributed
  • IMF gets to dictate terms and so they control the manner by which a state resolves its balance of payment difficulties
• When is IMF least powerful?

  • Performing roles of surveillance and capacity development
  • Finding and advice that IMF makes are non-binding
  • States can choose to ignore/refuse to implement IMF's recommendations. This happens when state perceives the recommendations to not be in their national interests or their ideologies
• Washington Conscencus

  Expenditure cuts (austerity measures), deregulation, privatisation (transferring state enterprises into private sector) , extraction and exportation of natural resources , tax reform (increase taxes), anti-corruption measures
• Critiscims of IMF

  • Lending conditions often reflect the dominance of the capitalist neoliberal policies of the IMF's contributors (i.e. USA)
  •  following a 'one-size-fits-all' approach - showing little regard for the distinct characteristics of individual states requiring assistance
• Bangladesh Case Study


  • Bangladesh has reached preliminary agreement with the International Monetary Fund to secure a $4.5 billion loan amid mild economic shocks
  • Bangladesh's finance minister, Mustafa Kamal, described the loan request as a, "precautionary measure to ensure that this instability does not escalate into crisis." (2022)
• Ecuador Case Study

  • Ecuador approves law granting autonomy to central bank
  • April 2021, Ecuador approved a law increasing the independence of its central bank, more required to access a $US6.5 billion loan to IMF