The IMF is one of the Bretton Woods establishments developed to support the world's economic and financial systems. The institution was initially created to restore and reestablish Europe after the Second World War as an organization that oversees the monetary system at an international capacity. Indeed, the Bretton Woods Conference was organized to improve economic standards to help the members preserve the value of their currency and subsequently avoid trade hurdles and high-interest rates that led to the great depression (Amadeo, 2019).
Currently, the IMF is a 189- member institution with various roles and responsibilities; including monitoring the global financial and economic conditions and identifying any risks. The IMF also advises its members on how to better their economies in addition to offering technical support and short-range credits in efforts of avoiding financial disasters. The institution creates various analytical reports each year since it is in a position to monitor and evaluate the economies of all its members (Amadeo, 2019). Grounded in its different economic and financial assessments, the institution directs the member countries on the best actions during both good times and economic recessions. The organization also lends money to its members to assist these countries in managing the balance of payment glitches, stabilize their economies, and ensure sustainable development. Unlike the World Bank that offers loans to developing economies for specific projects intended to reduce poverty, the IMF does not finance projects. Since the 2008 global financial crises, the roles of the institution have only increased as it is called upon more often than not to provide reliable assessments on the global financial and economic situation.
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I had previously heard of the institution in various economic and financial discussions on national television, international broadcasting, and on social media news accounts. I believe the institution is essential in ensuring the financial stability of the member countries and the entire globe. Since all the members are required to submit their economic policies to the IMF for scrutiny, it is evident that the assessments provided by the institution are relevant in advising specific action or inaction.
References
Amadeo, K. (2019, July 10). IMF, Its objectives, structure, functions, members, role, history. Retrieved August 3, 2019, from The Balance: https://www.thebalance.com/what-is-the-imf-its-role-and-functions-3306115
