Stuffing New Wine into Old Bottles: The Troubling Case of the IMF

Abstract

This article argues that the IMF is failing to adequately fulfill its mandate because its decision-making structure and procedures have not adapted to its changing functions and role in the global economy. This results in poor policy decisions and causes distortions in the IMF's relations with its member states, non-state actors, and with other international organizations. It also causes problems with some of the IMF's interpretations of its articles. The article also proposes a set of short, medium and long term reforms that, if adopted by the IMF, would make its decision-making procedures more compatible with its current functions and changed relations with its member states, non-state actors and other international organizations. They would also result in improved policy decisions.

JEL Classification: F3