The International Monetary Fund (IMF)

Running head: THE INTERNATIONAL MONETARY FUND
The International Monetary Fund:
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The International Monetary Fund (IMF)
Introduction
The IMF is an international organization comprised of 187 countries. Its main function is to stabilize the global macroeconomic environment through cooperation of monetary policies of its members, facilitating financial intermediation and ensuring high employment throughout the world. It also works to eradicate poverty around the world (imf.org, 2011). This paper explores the organizational structure of the IMF, the challenges it has faced in its institutional structure and the efforts that have been taken to fix the problems.
Origin of IMF
The history of IMF dates back in the early 1930s during the world Great Depression. During this time, the economies of most countries were declining rapidly. To remedy the situation, many countries resulted to devaluation of their currencies and reduction in foreign direct investment. However, these efforts proved to be futile. It is then that the founders of IMF embarked on a plan to regulate the global monetary system (imf.org, 2011).
The idea to form IMF was conceived in July 1944 during a meeting of representatives from 45 countries. The representatives of these countries met in Breton Woods, New Hampshire. They came to an agreement to foster worldwide economic cooperation. The cooperation was to be established after World War II. The IMF was formally incorporated in December 1945 and commenced its operations in March 1, 1947. It was initially formed by 29 countries through a document known as Articles of Agreement. Then its membership started expanding in the 1950s. Most African countries became members in the 1960s after they attained political independence from the colonialists (imf.org, 2011).
Mission of the IMF
The core mission of the IMF is to ensure a sustainable international monetary system. This sustainability is executed in three ways: lending services to countries suffering balance of payment deficits, stabilizing the global economy and giving assistance to members. It acts as an overseer of the global monetary system and keeps track of the particular economic growth and development of its members (imf.org, 2011).
The organizational and governance structure of the IMF
The management structure of the IMF is composed of a management team and 17 departments. The departments are responsible for analytical, technical and policy duties in the different member countries. The management team is made up of a managing director and three deputy managing directors. The team is charged with the responsibility of managing the operations of the entire organization ranging from linking it with the different member governments, non-governmental organizations and other global institutions to ensuring constant contacts among all the stakeholders.
The organiza...