Assignment Question – 'Key Players in International Capital Market Regulation'

COMPARE AND CONTRAST the roles, responsibilities and economic effect of the International Monetary Fund (IMF) with respect to its operations within the broadly-defined International Capital Market.

DISCUSS briefly the history and development of the organisation and the major influences or influential events that affected the organisation's role in global affairs.

DESCRIBE briefly the global legal and regulatory frameworks that provide authority to the International Monetary Fund. OUTLINE any significant legal issues or challenges the organisation has faced over time.

INTRODUCTION

IMF is an international financial institution (IFI) that attempts to foster global monetary cooperation, secure financial stability, promote sustainable economic growth, and reduce poverty around the globe. The organisation's role since its inception shall be elaborately dealt with in further sections. However, it is clear that the mandate of IMF is still relevant as it was in 1945. A key element that distinguishes IMF from other organisations is that it has a unique cross-country perspective and the edge of having diverse membership which enables them to have policies catering to a huge clientele.

This assignment shall elucidate the growth of IMF since its inception and at the same time analyse various factors that led to its development. Subsequently, it compares the role and responsibilities of IMF and shall also deal with the major challenges faced by the organisation. Finally, the assignment shall conclude with the Legal and Regulatory framework of IMF. 

HISTORY OF IMF

The International Monetary Fund (IMF) was founded at the Bretton Woods Conference in July, 1944 and has its headquarters in Washington D.C. The motivation for establishing IMF was an endeavour to bring international economy on track after the two world wars and the instability caused by competitive devaluations and protectionist trade policies. The organisation initially saw a membership of a total of 46 countries in 1946, which has significantly grown to a total of 184 countries. With the increase in this number the IMF also witnessed several organisational changes.A research conducted by Princeton University concluded that the organisation has since the past decade made a drastic shift from financial inactivity to what it stands for today is owing to its highly professional staff.

The IMF has developed with the world economy. Since the organisation's inception it has faced enormous legal, political and other challenges which enabled it to redefine its role in the International Capital Market. The nations with newly emerging markets are currently IMF's the largest borrowers. Also, the organisation provides support to low-income countries on concessional terms acting in furtherance of their mandate.

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