The History Of The IMF
According to Organization’s sources, History of the IMF can analyse in five steps from
1944 to present. These are Cooperation and Reconstruction(1944-71), The End of the
Bretton woods system (1972- 1981), Debt and Painful Reforms (1982- 89), Societal
Change for eastern Europe and Asian Upheaval (1990-2001), Globalization and
Crisis( 2005-Present).
Cooperation and reconstruction (1944-71)
During the great depression in 1930’s, countries created sharply raising foreign trade
barrier to support their failing economies, devaluing their currencies to provide
competition and closing of their citizens to outside for hold foreign exchange. World trade
reduced sharply and unemployment exploded and living standards crashed in many
countries.
This recession in world economies led the necessity of international monetary system. The
system is exchange rates and international payments system which enables countries to
trade with other countries and ensure echange rate stability.
Bretton woods agreement
IMF was first time thought in July 1944 by representatives of 45 countries meeting in the
town of bretton woods, New Hampshire, in United States. Gathering under a framework
for international economic cooperation was made decision in Bretton Woods. It would
established after the second world war.
John Maynard Keynes and Harry Dexter White known as IMF’s founding father. In
Bretton Woods Conference, Keynes joined as Minister of the economy and White joined
as chief of the U.S. Treasury.
The IMF was established in december 1945, when its first 29 member countries signed its
establishment agreement. IMF began their operations on March1, 1947, The first borrower
country was France in 1948.
During 1950’s-1960’s many african countries applied to IMF for membership. Because,
