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Unit 30 : UNCTAD, IMF, World Bank and Asian Development Bank

3. Promoting exchange stability Notes
4. Assisting in the establishment of a multilateral system of payments, and
5. Making its resources available (under adequate safeguards) to members experiencing balance
of payments difficulties.
Activities

More generally, the IMF is responsible for ensuring the stability of the international monetary and
financial system—the system of international payments and exchange rates among national currencies
that enables trade to take place between countries. The Fund seeks to promote economic stability and
prevent crises; to help resolve crises when they do occur; and to promote growth and alleviate poverty.
It employs three main functions—surveillance, technical assistance, and lending—to meet these
objectives.
1. The IMF works to promote global growth and economic stability—and thereby prevent economic
crisis—by encouraging countries to adopt sound economic policies.
2. Surveillance is the regular dialogue and policy advice that the IMF offers to each of its members.
Generally once a year, the Fund conducts in-depth appraisals of each member country’s economic
situation. It discusses with the country’s authorities the policies that are most conducive to
stable exchange rates and a growing and prosperous economy. The IMF also combines
information from individual consultations to form assessments of global and regional
developments and prospects. Its views are published twice each year in the World. Economic
Outlook and the Global Financial Stability Report.
3. Technical assistance and training are offered—mostly free of charge—to help member countries
strengthen their capacity to design and implement effective policies. Technical assistance is
offered in several areas, including fiscal policy, monetary and exchange rate policies, banking
and financial system supervision and regulation, and statistics.
4. In the event that member countries do experience difficulties financing their balance of payments,
the IMF is also a fund that can be tapped to help in recovery.
5. Financial assistance is available to give member countries the breathing room they need to
correct balance of payments problems. A policy program supported by IMF financing is designed
by the national authorities in close cooperation with the IMF, and continued financial support
is conditional on effective implementation of this program.
6. The IMF is also actively working to reduce poverty in countries around the globe, independently
and in collaboration with the World Bank and other organizations.
7. The IMF provides financial support through its concessional lending facility—the Poverty
Reduction and Growth Facility (PRGF)—and through debt relief under the Heavily Indebted
Poor Countries (HIPC) Initiative.
8. In most low-income countries, this support is underpinned by Poverty Reduction Strategy Papers
(PRSP). These papers are prepared by country authorities—in consultation with civil society
and external development partners—to describe a comprehensive economic, structural and
social policy framework that is being implemented to promote growth and reduce poverty in
the country.

IMF Governance and Organization
The IMF is accountable to the governments of its member countries. At the apex of its organizational
structure is its Board of Governors, which consists of one Governor from each of the IMF’s 184 member
countries. All Governors meet once each year at the IMF-World Bank Annual Meetings; 24 of the
Governors sit on the International Monetary and Finance Committee (IMFC) and meet twice each
year. The day-to-day work of the IMF is conducted at its Washington DC headquarters by its
24-member Executive Board; this work is guided by the IMFC and supported by the IMF’s professional
staff. The Managing Director is Head of IMF staff and Chairman of the Executive Board, and is
assisted by three Deputy Managing Directors.

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