By: Ernesto I. Hidalgo
GCL 2010, Ecuador
Policy Recommendation: Latin American countries should advocate for a double-majority voting system at the International Monetary Fund’s Executive Board.
The International Monetary Fund (IMF) is one of the worldwide financial institutions born after the United Nations Monetary and Financial Conference in Bretton Woods, NH, on July 1944, in response to the need of global financial integration and reform. The Fund has three key purposes: to monitor the international monetary behavior, provide financial assistance to its member states and give them advice and technical support on economic issues. The IMF has been closely involved with Latin America, especially over the last four decades, giving the region considerable financial aid and counsel. However, nowadays it is the target of harsh criticism due to the reforms and austerity it requests from borrowing countries, technically known as “Structural Adjustment Programs” (SAPs).