IMF Reform Soon In Start !

The International Monetary Fund or the International Monetary Fund (IMF) is an international organization that is responsible in regulating the global financial system and provide loans to member nations to help the problems of financial balance of each country. One mission is to help countries experiencing serious economic difficulties, and in return, these countries are required to establish certain policies, such as privatization of state enterprises.


Member countries of the G-20 agreed to conduct a massive reform in the body of the International Monetary Fund (IMF). This was done in the middle of a shift map of world economic power. In these reforms, new economic powers like China the world will be given a large share of power in decision making at the IMF. The finance ministers of the G-20 meeting in South Korea decided to reform, after going through various efforts for years to make the sound power in the IMF shifted to countries with new economic powers like China and India.



The finance ministers of G-20 will make reforms that would make the IMF more effective and credible. Thus allowing the IMF to play its role in supporting the operation of international monetary and financial system. The deal comes amid efforts to resolve the G-20 currencies and the war that occurred between major exporting countries such as China with countries like the U.S. trade deficit.
In this reform, will come changes in the IMF's board chair, developing countries as new economic powers will get more seats. Strauss-Kahn said European countries have agreed to hand over 2 chairs the board of the IMF to developing countries. In fact, about 5% of votes in the IMF's power will also be handed over to countries like Brazil, Russia, India, and China.

So far, the U.S. is the largest funder IMF, which is almost 17%. To help countries experiencing liquidity problems. Then Japan became the second largest shareholder, followed by Germany, France, and England. But now, China has done an amazing economic transformation over the past 3 decades. Even this country, indicating remarkable resilience amid the global economic crisis is devastating in 2008-2009.

This reform is also based on a lot of thought ekonomiyang experts criticized the pattern of financial assistance which is always accompanied by "conditions", including the Structural Adjustment Programmes. The terms of these lower social stability, which also means that hamper the objectives of the IMF. IMF restrict developing world economies in a way opposed to infrastructure development and requested the relevant country to live with lower standards. As a result, institutions like the IMF loan sharks for creditor countries.