International Monetary Fund
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Authors
Erb, Richard D.
Issue Date
1983-05-10
Type
Other
Language
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Abstract
BIOGRAPHICAL NOTE|Erb has recieved a Ph.D. in economics from Stanford, Arthur D. Little consultant, Saloman Brothers economist, White House staff assistant on international monetary affairs, Council on Foreign Relations fellow, American Enterprise Institute resident economist, John Hopkins University lecturer, Department of Treasury officer, and author of a multitude of articles on economic and financial matters.
ANNECDOTE| From Erb's presentation I learned how UN General Assembly and the IMF as a specialized agency remain in constant tension and, thus, that I should not take into account only the Developing Country plaint that IMF squeezes them and keeps them in servitude. IMF's concern is the feasibility of stable development rather than either tolerating corruption or pumping in capital beyond a country's absorptive capacity.
SUMMARY| Erb quickly clicked off main feature of the UN's IMF, including noting that because the US provides more capital to the fund than any other country, it sits on the governing board and has more votes than any other governor. During its existence the IMF has responded to international needs beyond its original charter which covered only to assist balance of payments financial movements and surveilled exchange rates and bank lending practices and made policy by consensus proceeding. But member states have turned to IMF also for help in insulating ministers of finance from domestic pressure, technical assistance to banks and governments' development programs; in these roles it has taken on enforcement competence for policies it institutes to stabilized economies: "conditionality." It has tried to guide countries that suffer the "curse of oil" to redirect their economies in more sustainable, productive directions. Because of these roles IMF has grown a reputation for "demanding austerity." IMF reports influence investors.
ANNECDOTE| From Erb's presentation I learned how UN General Assembly and the IMF as a specialized agency remain in constant tension and, thus, that I should not take into account only the Developing Country plaint that IMF squeezes them and keeps them in servitude. IMF's concern is the feasibility of stable development rather than either tolerating corruption or pumping in capital beyond a country's absorptive capacity.
SUMMARY| Erb quickly clicked off main feature of the UN's IMF, including noting that because the US provides more capital to the fund than any other country, it sits on the governing board and has more votes than any other governor. During its existence the IMF has responded to international needs beyond its original charter which covered only to assist balance of payments financial movements and surveilled exchange rates and bank lending practices and made policy by consensus proceeding. But member states have turned to IMF also for help in insulating ministers of finance from domestic pressure, technical assistance to banks and governments' development programs; in these roles it has taken on enforcement competence for policies it institutes to stabilized economies: "conditionality." It has tried to guide countries that suffer the "curse of oil" to redirect their economies in more sustainable, productive directions. Because of these roles IMF has grown a reputation for "demanding austerity." IMF reports influence investors.