The International Monetary Fund
Alongside the World Bank, the International Monetary Fund (IMF or ‘the Fund’) was founded in 1944 as part of efforts to rebuild following the Second World War.
Its mandate was to promote international economic cooperation and ensure that the economic and financial instability of the inter-war period would not re-emerge to threaten the peace. However, the Fund’s legitimacy is today at stake given its undemocratic governance and its failure to uphold human rights and development and prioritising debt servicing.
The Fund’s work comprises lending, surveillance and capacity development:
- Lending: It provides loans to its member countries only when they are unable to access financing from private or other sources, and are experiencing or close to a financial crisis. A crisis means balance of payments problems, often experienced as a collapsing currency or an inability to repay national debts.
- Surveillance: It conducts annual reviews of the risks and economic challenges faced by each member country, and provides a twice-yearly report on the health and stability of the world economy and the global financial system.
- Capacity building: It also provides technical assistance and training in core economic policies when requested by members.
The Fund is led by a managing director, appointed by and selected from European nations due to the ‘Gentlemen’s Agreement’ tradition. Kristalina Georgieva was elected for a second five-year term in October 2024. Her role is to chair the executive board and oversee the Fund’s operations on their behalf. Seven European countries and the US control almost 50% of the votes in the institution, which has 190 members.
Recourse’s work on the International Monetary Fund
Recourse conducts research and advocacy on the IMF due to its profound impact on countries’ economic decisions that affect policy issues far beyond the economic sphere, including people’s rights and the environment.
- Since 2019, we have been working with partners and allies to challenge how the IMF interprets its climate-related responsibilities.
- We expose and document how the IMF’s interventions have undermined efforts to transition away from fossil fuels in a just and equitable way. With partners in affected countries, we have examined the impact of the IMF in Argentina, Pakistan, Bangladesh, Senegal, Uganda amongst others.
- Twice per year, we bring our demands in person to the IMF Spring Meetings and Annual Meetings, along with representatives from partner organisations and local communities affected by the Fund’s operations.
Browse below for examples of Recourse’s work on the International Monetary Fund.
