GLOBALIZATION »» GLOBAL FINANCE »» INTERNATIONAL MONETARY FUND »» Jun 06, 2022

The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank) are the financial arms of the World Trade Organization. The IMF, an international organization with 189 member nations, facilitates international financial transactions and makes loans to developing countries in need. Wars, disasters and economic crisis are common needs. Often, the IMF is the only source of financial assistance available to these distressed countries. Decisions of the IMF and World Bank are crafted by a Board of Governors who meet once a year, and 25 Executive Directors who handle day-to-day decisions. Each member nation appoints a governor, often its Minister of Finance. Critics claim poorer nations are not adequately represented in World Bank and IMF proceedings because voting shares are based on the size and ‘openness’ of a nation’s economy. Because if this, poorer countries – often those receiving loans from the IMF - are under-represented in the decision-making processes. Advocates say a system of double-majority voting, where an agreement would require both shareholder and member state majorities, would give developing countries a more equal role in guiding IMF policies. Proposed Legislation: H.R.6086 - IMF Reform and Integrity Act of 2020 Prospective Sponsor: Rep. Bill Huizenga (MI)