IMF Is Called To Reform

Top officials of the International Monetary Fund say the organization must reform to be able to respond more quickly to crises in the changing global economy. IMF officials concluded two days of meetings in Washington with a statement calling for structural reforms of the organization.

The International Monetary Fund (IMF) is the international organization entrusted with overseeing the global financial system by monitoring exchange rates and balance of payments, as well as offering technical and financial assistance when asked.

The primary mission of the IMF is to provide financial assistance to countries that experience serious financial difficulties. Member states with balance of payments problems may request loans and/or organizational management of their national economies. In return, the countries are usually required to launch certain reforms. These reforms are generally required because countries with fixed exchange rate policies can engage in fiscal, monetary, and political practices which may lead to the crisis itself.

Critics of IMF argue that it does not give a fair reperesentation to all the countries. It takes a firefighter approach to tackling economic problems such as that was seen in the East Asian Finacial Crisis, the effects of which led to global financial implications.