Balance-of-payments financing: evolution of a regime

1982 ◽  
Vol 36 (2) ◽  
pp. 457-478 ◽  
Author(s):  
Benjamin J. Cohen
Keyword(s):  
Decision Making ◽  
Balance Of Payments ◽  
Profound Change ◽  
Basic Principles ◽  
Bretton Woods ◽  
Unlimited Supply ◽  
Private Credit ◽  
The International Monetary Fund ◽  
Rules Of The Game ◽  
The Imf

The regime for payments financing embedded in the postwar Bretton Woods system was based on the principle, formally articulated in the Charter of the International Monetary Fund (IMF), that nations should be assured of an adequate but not unlimited supply of supplementary financing for balance-of-payments purposes. Norms included the obligation to avoid policies inconsistent with the IMF Charter (i.e., to play by the agreed rules of the game). In the 1970s the regime seemingly underwent profound change, as the private credit markets emerged as an increasingly important rival to the IMF as a source of payments financing. Nonetheless, this change fell short of a transformation of kind, insofar as the Fund continues to play a role as informal certifier of creditworthiness in the markets. Rather, it represents an example of ‘norm-governed change.’ Despite greater ambiguity in rules and decision-making procedures, a strong element of continuity in basic principles and norms remains.

scholarly journals Decision-Making in the International Monetary Fund: Implications for Sovereign Equality of States

2019 ◽  
Vol 23 (37) ◽  
pp. 44-66
Author(s):  
Alex Ansong
Keyword(s):  
Decision Making ◽  
International Monetary Fund ◽  
International Organizations ◽  
Joint Stock Company ◽  
Stock Company ◽  
Sovereign Equality ◽  
International Economic Cooperation ◽  
Set Up ◽  
The International Monetary Fund ◽  
The Imf

Abstract The International Monetary Fund (IMF) is one of the post-Second World War international organizations set up to promote good international economic cooperation among states. Unlike international organizations like the United Nations (UN) and the World Trade Organization (which succeeded the General Agreement on Tariff and Trade 1947), decision-making in the IMF is quite peculiar in that it is based on the joint stock company model where the value of shares determine the value of a member’s vote. Thus the principle of sovereign equality of states that underpins the one-member-one-vote system in the UN and WTO is absent in the IMF. This paper discusses the various decisionmaking organs in the IMF and concludes with a discussion on the sovereignty implications of the use of IMF conditionalities in the giving of loans, especially to developing countries.

The international monetary fund in eastern europe: seven years of experience

1997 ◽  
Vol 6 (1) ◽  
Author(s):  
Jiří Jonáš
Keyword(s):  
Foreign Trade ◽  
Eastern Europe ◽  
International Monetary Fund ◽  
Financial Support ◽  
Recipient Country ◽  
Balance Of Payments ◽  
Financial Assistance ◽  
The International Monetary Fund ◽  
Term Objective ◽  
The Imf

Almost seven years ago, in January 1990, the IMF approved for Poland its first stabilisation program in Eastern Europe. The Fund's role was to provide financial support to macroeconomic stabilisation in the wake of rapid liberalisation of prices, opening of foreign trade and devaluation of currency. In 1991, as reforms in Eastern Europe unfolded, stabilisation programs for other countries followed. During the nearly seven years since, the IMF has provided billions of USD to countries in the region, and all of the former centrally planned economies except Slovenia have received financial support from the IMF. The Fund's financial assistance never comes with no strings attached. Such assistance must serve not only the immediate purpose of balance of payments support but also the longer-term objective of eliminating the problems causing the recipient country to seek the Fund's assistance.

scholarly journals Monetary Unions, Regional Financial Arrangements, and Central Bank Swap Lines: Bypasses to the International Monetary Fund?

AJIL Unbound ◽  
2017 ◽  
Vol 111 ◽  
pp. 241-246
Author(s):  
Rohinton P. Medhora
Keyword(s):  
Central Bank ◽  
Public Good ◽  
International Monetary Fund ◽  
Balance Of Payments ◽  
International Reserves ◽  
Global Public Good ◽  
Bretton Woods ◽  
Financial Arrangements ◽  
The International Monetary Fund ◽  
Over Time

The situation calls for international cooperation, and all the parties at the Bretton Woods Conference understood this. A pool of international reserves that was readily accessible under mutually agreed upon rules by its members would be a “global public good,” providing considerable efficiency over having all countries solely hold their own stock of international reserves. Since balance of payments shocks are typically asynchronous across countries and over time, the principles of pooling and insurance would assure a net gain from the arrangement.

Unauthorized Changes of Par Value and Fluctuating Exchange Rates in the Bretton Woods System

1971 ◽  
Vol 65 (1) ◽  
pp. 113-128 ◽  
Author(s):  
Joseph Gold
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
International Monetary Fund ◽  
Value System ◽  
Basic Principles ◽  
Bretton Woods ◽  
Important Principle ◽  
The Exchange Rate ◽  
The International Monetary Fund

In these days when the exchange rate provisions of the Articles of Agreement of the International Monetary Fund are being scrutinized, although in a spirit of continued approbation of the basic principles of what is called the par-value system or the Bretton Woods system, it may be useful to examine one of the most remarkable features of the agreement which was reached in July, 1944. The reference is to Article IV, Section 6, of the Articles of Agreement, which deals with what are called, in the title of the provision, "unauthorized changes" of par values. The provision is interesting not only because it establishes an important principle of the par-value system but also because it does this by means of a novel and ingenious legal technique.

How should the international monetary fund function in the modern world?

2000 ◽  
Vol 9 (4) ◽  
Author(s):  
Mária Havrilová
Keyword(s):  
International Monetary Fund ◽  
World Economy ◽  
Asian Financial Crisis ◽  
Balance Of Payments ◽  
Modern World ◽  
Lender Of Last Resort ◽  
Financial Flows ◽  
Imf Programs ◽  
The International Monetary Fund ◽  
The Imf

The International Monetary Fund is a remarkable survivor. It was created to carry out specific functions in a world that has since vanished. Its role in the world economy still remains central. But in recent times, it has faced considerable criticism, both in terms of its role and its performance. We examine why IMF programs are often ineffective in achieving their goals, and whether there are any prospects for strengthening the IMF's role to become a genuine global monitor of financial flows and monetary issues. Then we examine the Fund's major role as lender of last resort to members who experience balance of payments problems. In particular, it will argue that the IMF's reliance on "conditionality" as a means of affecting change in the domestic policy of some of its members is misguided. Finally, a few suggestions on how the IMF could improve its procedures and brief evaluation of the IMF´s intervention in the Asian financial crisis.

Spiritual Foundations for an Ecologically Sustainable Society

1989 ◽  
Vol 2 (1) ◽  
pp. 33-57
Author(s):  
Robert A. White
Keyword(s):  
Profound Change ◽  
Basic Principles ◽  
Baha'i Faith ◽  
Ecological Society ◽  
Human Endeavor ◽  
Spiritual Foundations ◽  
Cooperative Relationship ◽  
Ecologically Sustainable ◽  
Agriculture Development ◽  
Human Purpose

This paper takes a broad macroevolutionary approach to our changing relationship to Nature in light of the teachings of the Bahá’í Faith. It suggests that humanity is perhaps, after all, not a delinquent species running out of control but is at the very centre of a vast growth process clearly approaching a tremendous transition. Drawing on the teachings of the Bahá’í Faith as well as on emerging knowledge in physics, ecology, and psychology, it suggests humanity is in a process of evolving consciousness that is leading to the birth of a new planetary culture. This process subsumes the development of a mature cooperative relationship between humanity and the ecosphere that gave it birth. This examination and synthesis will be accomplished in two parts. In the first part the basic attitudes to Nature that are contained within the Bahá’í writings will be explored and explicated. The second part will examine how the emergence of an ecological consciousness is linked to basic principles of the Bahá’í Faith. These principles will be related to tenets for an ecological society being advanced by contemporary social commentators. Implicit throughout is the Bahá’í view of the balance and cohesion of material and spiritual realities in approaching every question, whether it be environmental policy, agriculture, development, health, or peace. All areas of human endeavor are interrelated and require an integrated understanding of human purpose. This paper lays no claim to being an authoritative Bahá’í position and should be regarded as a preliminary attempt of one mind to grasp some of the deeper meanings latent in the voluminous writings of the Bahá’í Faith. Through this attempt it is hoped the reader will be led to a deeper understanding of current environmental dilemmas and will be offered a vision of profound change for which the current crises may be viewed as "forcing functions." As idealistic as this may seem, in this day only the visionary is pragmatic.

Angling for Influence: Institutional Proliferation in Development Banking

2020 ◽  
Author(s):  
Tyler Pratt
Keyword(s):  
Decision Making ◽  
World Bank ◽  
Global Governance ◽  
International Organizations ◽  
Market Failures ◽  
Multilateral Development Banks ◽  
Institutional Control ◽  
Bretton Woods ◽  
Global Power ◽  
Identification Strategy

Abstract Why do states build new international organizations (IOs) in issue areas where many institutions already exist? Prevailing theories of institutional creation emphasize their ability to resolve market failures, but adding new IOs can increase uncertainty and rule inconsistency. I argue that institutional proliferation occurs when existing IOs fail to adapt to shifts in state power. Member states expect decision-making rules to reflect their underlying power; when it does not, they demand greater influence in the organization. Subsequent bargaining over the redistribution of IO influence often fails due to credibility and information problems. As a result, under-represented states construct new organizations that provide them with greater institutional control. To test this argument, I examine the proliferation of multilateral development banks since 1944. I leverage a novel identification strategy rooted in the allocation of World Bank votes at Bretton Woods to show that the probability of institutional proliferation is higher when power is misaligned in existing institutions. My results suggest that conflict over shifts in global power contribute to the fragmentation of global governance.

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