International Monetary Fund, Essay Example

The Foundation of International Financing Operations Devoted to Progress

Introduction

Money is such an important resource especially for countries that are aiming to increase their capacity of joining in the process of determining their position in progress in competition with other nations. Nevertheless, although monetary resources set a distinct competition among nations, it also sets a common ground of connection among nations from an international picture. It sets the economic standard among nations as they desire for better status in relation to the progress that they take into serious account. The creation of a specific system and institution that would hold the primary possibilities to determine the course of development that each nation is aiming to be subjected to is directed toward creating better options for all nations to adjust into. The International Monetary Fund is one specific institution that is able to respond to such role especially in empowering nations in their desire towards acquiring relative chance towards development. Nevertheless, the IMF embraces specific procedures to make sure that it is able to respond to specific conditions of operation and expectations that its members are focused upon. In the discussion that follows, such elements of operation are to be given specific attention to. Taking into account the different options of development that IMF offers to its members, this discussion shall provide a distinct picture on how the institution actually empowers constant economic progress in relation to the commercial camaraderie that both developed and developing countries share.

What is IMF?

The International Monetary Fund is noted as an international organization that has formerly been created by 25 countries as its primary members. Established in 1945, the concept that the institution has been grounded upon entails the desire to assist nations as they take into account the possibility of reconstructing their economic systems and progressive options after the war years. The world [and all the nations thriving in it] was in a devastated state after the war years. Notably, to help nations get up again, the IMF system of monetary management aims to collect budget that would be utilized by nations as they take on new phases of development. The collection of contribution is measured through the quota system. The pool of nations contributing into the overall fund of the institution allows the organization to acquire a particular amount of money that would be ready for borrowing on the part of the nations under the institution’s wing.

It specifically aims to serve as a bridge of camaraderie that allows nations to help each other in the hope of reconstructing their economic structures after the war. As of 2010, the General Review of Quotas presented a collected fund of SDR or foreign reserve assets amounting to US$755.7bn. The said quota is to be used for the determinable support that the members of the organization need especially in consideration to the developments they are aiming to incur. Borrowing from IMF is considered to be a support emergency system that is able to provide nations an ease when it comes to realizing their plans for national progress.

Currently boasting at least 188 members of the institution, IMF supports major nations that are aiming to set their paths towards development. Funding progress is however only one of the many roles that IMF takes into account especially in the concept of making sure that the money they lend to each nation is used in accordance to the expected operation that are assumed to yield better results for the sake of determining good options of development. These roles shall be given attention to in the section that follows.

Organizational Roles and Systems of Operation

Being a financial institution that is dedicated towards empowering progress, IMF is able to evolve through time especially in relation to how they create effective programs that nations could take into closer account as they take on the challenge of competing with other nations when it comes to determining their progressive options. Creating programs that aim to facilitate international trading systems seem to be one of the most effective procedures that IMF takes into account to make sure the international economy is protected accordingly especially during times of financial stakeouts that usually result to financial crisis.

When nations noted as part of their institution aims to create programs for their own people especially dedicated to reducing unemployment rate, IMF gives the support that each country take into account. This is how IMF assumes its role as a facilitator and promoter of high employment rate thus creating a funding and budget operation that is dedicated to managing the major assets of the nations they cater to. As mentioned in the previous discussion, the IMF operations entail to create a distinct program that is dedicated towards helping nations find a more efficient system that would allow them to become more productive. Assisting them to measure their best assets and make use of such elements to fund out their own plans for national progress gives IMF the reputation of being a financial mentor to administrators of nations that are dedicated to creating economic changes in their country and enhancing the assets they have to be able to generate national profit as desired.

More than an international financial resource, IMF now provides several services to nations that are in need of information especially when it comes to determining the concept of national economic progress. As a bridge between developed and prematurely developing nations around the globe, IMF provides the less developed nations to get the best out of the international economic system and make a distinct change in their nations allowing them to get into the process of progress, one that they could contend with and one that they can hold on to, especially in instances when financial crisis occurs.

Focusing on the nations’ capacity to provide for the primary needs of their residents such as food, health and environmental integrity, IMF stands as the primary foundation for international camaraderie among nations aiming to progress and operate for the sake of the development of the people and the countries as a whole. This is the reason why when a country wants to become a part of the institution and be able to gain benefits from its operation, it is required that each nation take into account the need to have a relative background that gives it a good reputation pointing out that it is ready to cooperate with the overall system of the organization especially dedicated to creating financial camaraderie among nations. The new members also need to agree to pay quota contributions that would determine their role in assisting other nations to take on progress as much as they want to embrace such national status as well.

Conclusion

The International Monetary Fund’s role in the process of defining progress in a more international scope is specifically dedicated towards fostering development among nations through allowing them survive alongside each other. While monetary resources actually establish a sense of competition among nations, IMF’s operations entail to use money as the primary source of camaraderie among developed and underdeveloped nations around the globe. Giving every nation a chance to improve the option of living that they give their people, IMF aims to improve how global problems could be resolved through financial camaraderie and effective financial management as well.