The International Monetary Fund (IMF)

The International Monetary Fund (IMF)

1. Established to regulate international financial issues

   • It watches exchange rates between different currencies to keep the rates stable.
     • It also makes loans available to countries that have built up debt
       • But, these countries have to agree to adopt capitalist economic policies favored by the IMF
       • Such as "Structural Adjustment programmes"

2. In the 1990s and the 1980s governments had to cut spending by, reducing the amount of people working for the state , privatise government enterprises and increase export production.

3. However, these policies caused a lot of economic hardship and popular opposition

   • The IMF has a great deal of power, as countries that were not approved for credit by the IMF, cannot obtain credit from any other bank.