How America control the IMF
Recently, three Asian countries including Bangladesh have sought huge loans from the International Monetary Fund (IMF).Although Bangladesh has not taken any loan from IMF for the last 10 years. So the name of the organization did not come up for much discussion. But recently, due to the Ukraine-Russia war, the economic crisis has started all over the world. That is why Bangladesh has once again approached the IMF. As a result, the organization came into discussion again.
What is the IMF?
This bank was established in 1944 alongside the World Bank, where 44 countries were its primary members. Currently 190 countries of the world are its members. Representatives of these 190 countries manage this bank.
However, as the World Bank lends to various countries for various development activities, But the IMF does not provide service loans. The organization primarily works to maintain the stability of the world's monetary system, and to promote growth. For this purpose, a country gives loans to maintain its trade deficit, dollar crisis and reserve status.
The biggest task of this organization is to keep an eye on the economic system of the world, to research it. They keep the economic data of each country with them and produce annual reports by doing separate research on each country.
Depending on these reports, member countries may or may not lend. In addition, many countries determine their future course of action based on their data and research. For these reasons, the IMF is called the most powerful organization in the world. And the authority of this powerful organization is mainly in the hands of the United States.
Company Revenue and US Impact:
Although the IMF has three types of income including interest lending, the largest income comes from member countries' contributions. That is, if a country is a member of the organization, it has to pay a fixed rate of subscription. How much a country will be a partner in the organization depends on this contribution. A country can become more partners by paying more money if it wants. And a country with less contribution becomes less partner.
Based on this principle, the United States has become the largest partner of the organization. Because they contribute the most, which is about 155 billion dollars. This is the main reason why the country has more power to vote.
A 70 to 75 percent vote is required for the IMF to take a decision. But the United States has more than 16 percent voting power among 190 countries. So America has the power to veto various decisions.
The company has an executive board of 14 directors, of whom only 8 are permanent directors. Permanent member countries are USA, UK, China, Germany, Japan, Russia and Saudi Arabia. Even if the other members of the board change, the positions of these 8 people never change. And according to tradition, the chairman of this bank will be a European personality.
On the other hand, the chairman of the World Bank must also be an American. And the organization has been following such rules since its establishment. And that is why America and Europe have the most influence in the IMF.