Imf activities

The IMF is generally, responsible for promoting the stability of the

international monetary and financial system–the system of international

payments and exchange rates among national currencies that enables

trade and financial transactions to take place between countries. The

Fund's job is to promote economic stability, help prevent crises, and

help resolve them when they do occur, thereby promoting growth and

alleviating poverty. Its three main activities–surveillance, technical

assistance, and lending–are intended to meet these goals.

The IMF works to promote global growth

and economic stability–and thereby

prevent economic crisis–by encouraging

countries to adopt sound economic

policies.

Surveillance

comprises multilateral

surveillance, under which the IMF

provides periodic assessments of global

and regional developments and prospects, Dar es Salaam, Tanzania: In the

published twice each year in the World past, low-income countries in

squeeze would have

controls

surveillance which is the regular dialogue Stephen Jaffe/IMF)

and policy advice that the IMF offers to

each of its members. Usually once a year, the Fund conducts in-depth

appraisals of each member country’s economic situation and policies,

and advises on desirable policy adjustments. A new Surveillance

Decision , adopted in 2007, clarified best practices in this area, calling

in particular for greater focus on assessing whether policies are

conducive to external and domestic stability. The overwhelming

majority of countries opt for transparency , publishing extensive

information on bilateral surveillance.

Technical assistance and training are offered–mostly free of charge–to

help member countries strengthen their capacity to design and

implement effective policies. Technical assistance is offered in several

areas, including fiscal policy, monetary and exchange rate policies,

banking and financial system supervision and regulation, and statistics.

In the event that member countries do experience crises, the IMF

resources may be tapped to help finance balance of payments needs .

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Economic Outlook; and bilateral financialon imports (photo: put

Financial assistance is available to give member countries the breathing

room they need to correct balance of payments problems. A policy

program supported by IMF financing is designed by the national

authorities in close cooperation with the IMF, and continued financial

support is conditional on effective implementation of this program.

In low-income countries, the IMF provides financial support through

its concessional lending facilities–the Poverty Reduction and Growth

Facility (PRGF) and the Exogenous Shocks Facility (ESF)–and

through debt relief under the Heavily Indebted Poor Countries (HIPC)

Initiative and the Multilateral Debt Relief Initiative (MDRI) . In most

low-income countries, this support is underpinned by Poverty

Reduction Strategy Papers (PRSP) . These papers are prepared by

country authorities–in consultation with civil society and external

development partners–to describe a comprehensive economic,

structural and social policy framework that is being implemented to

promote growth and reduce poverty.

Through all these activities, the IMF contributes to international efforts

to reduce poverty around the globe, in collaboration with the World

bank and other organizations.