International Monetary Fund

International Monetary Fund

1. IMF

2. Aims

   • Promotes international financial stability
   • Prevents sudden changes
     • In relative values of currencies
   • Lends money to governments to settle balance-of-payment problems
     • Governments must follow strict guidlines
       • & Introduce financial & economic reforms
   • Carries out research
     • Measure countries' economic performance
     • Issues statistics
       • Showing levels of employment, productivity, inflation & balance of payments

3. 1980s

   • Many African countries had balance-of-payment problems
     • International banks would not lend money
     • IMF lent money
       • There were conditions though
         • Governments had to follow strict structural adjustment programmes
           • SAPs
           • Reduce spending
             • Cutting spending on health, education & pensions
           • Privatise state companies
             • Wanted to run businesses profitably
               • Reduce number of workers
                 • Increase unemployment & poverty
               • Close down unprofitable operations