Money may not make the world go around. The International Monetary Fund can make money go around the world. Founded in 1944, the IMF has 189 members. The IMF is accountable to those members and self-governing. The simplified goal is global financial cooperation. This is a complex and uniquely specialized agency of the United Nations (Magstadt, 2017). Members facilitate international trade, promote economic growth, reduce worldwide unemployment, and poverty. They provide priority lending money to member countries. There is more than $1 trillion in available lending dollars to member countries. (International Monetary Fund, n.d.). Member loans may to sure up an economy or for a development project.
They offer interest free loans to developing countries too. More than $300 million dollars are budgeted to improve a country’s policies, trade, and direct technical assistance. IMF helps countries with formulate economic policies. Whenever there is an economic stabilization project going on anywhere in the world, the International Monetary Fund will most likely be aiding.
In 1997, the IMF assisted in a resolution of a crisis originating in the Pacific Rim including countries like S. Korea, Thailand, and Indonesia. The International Monetary Fund committed $110 billion dollars to stabilize multiple Asian economies. In exchange, the countries made economic policy changes with strict conditions (Kuepper, 2019).
In 2008, another world economic crisis severely hindered IMF financial strength. During the G-20 Summit, members committed $1.1 trillion dollars replenish the IMF’s coffers (Magstadt, 2017). World economics is a delicate situation. Diplomacy and leadership are necessary to maintain responsible civil relationships.