INTERNATIONAL MONETARY FUND AT THE PRESENT STAGE

Abstract

The article examines the evolution of the reform of the International Monetary Fund. It is noted that there are two large groups in the issue of reforming the International Monetary Fund. Proponents of the first group believe that the IMF as an intergovernmental organization is outdated and ineffective. Scholars of the second group emphasize the need for the existence of the Fund and emphasize its reform. The impact of the 2008 global crisis on IMF reform has been analyzed in detail. In September 2008, the global crisis entered a new phase, characterized by a rapid and significant exacerbation. With this in mind, the IMF has identified policy objectives, including the need to pay more attention to macro financial linkages, reform its lending instruments, analyze the Fund’s role in financing member states and its resources, and provide emergency financing to countries affected by the crisis. The global crisis of 2007–2009 led to the need to develop a new concept of development and operation of the Fund, to reconsider the principles of its operation. The essence of the IMF reform, which was launched in 2008 and continues to this day, was a revision of the Fund’s quota allocation mechanism and credit policy to better provide its members with credit in the face of budget deficits. The Fund’s management has concluded that the income model that the IMF has followed since its inception does not provide sustainable funding for the Fund. According to this conclusion, the Executive Board agreed on the following measures: to propose an amendment to the Articles of the Agreement on the expansion of the Fund’s investment powers, which would allow the Fund to pursue an expanded investment policy and adjust its investment strategy with best practices. It is noted that the IMF usually puts forward approximately the same package of requirements, which includes: privatization of large enterprises, liberalization of prices and foreign trade, tight monetary policy to stabilize the currency, stop subsidizing unprofitable enterprises, and minimize budget deficits by reducing social programs and tax increases, currency devaluation.