The metamorphosis of the IMF : (2009-2011)

Abstract

In response to the global financial crisis, the G20 launched a series of far-reaching initiatives laying the foundations of a New International Economic Order (NIEO) based on three main elements: the configuration of the G20 as the forum for economic coordination (replacing the G7), the strengthening of the institutional pillars of the Bretton Woods system – the International Monetary Fund (IMF or Fund), the World Bank Group, and the World Trade Organization –, and the establishment of a new pillar of financial regulation and supervision, the Financial Stability Board. The purpose of this work is to analyze the transformation of the Fund between 2009 and 2011 in response to the global financial crisis. This analysis shows that there have been very substantial changes in all of its major fronts – governance and institutional culture, surveillance and lending policies, and resources – which represent the beginning of a metamorphosis in the operations and functions of the Fund that introduce new challenges and will determine its future role. Chapter 1 addresses the main changes in the NIEO. Chapter 2 looks at the evolution of the Fund’s lending and resources policies, which insert the post 2009 reforms in their historical perspective. Chapter 3 deals with the insurance and financing mechanisms developed as a response to the global financial crisis, the so-called Global Financial Safety Nets, including the new insurance function of the Fund. Chapter 4 analyses the changes in IMF governance, and Chapter 5 the post-2009 IMF lending policy. The final notes wrap up the previous chapters and summarize the challenges ahead for the IMF