Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion International Monetary Fund (IMF) The International Monetary Fund (IMF) is an international organization responsible for regulating the global financial system and providing loans to its member countries to help balance the balance sheet problems of each country. One ofmissionis to help countries experiencing serious economic difficulties, and in return these countries are required to carry out certain policies, for example the privatization of state-owned enterprises. Of the UN member countries that are not members of the IMF are North Korea, Cuba, Liechtenstein, Andorra, Monaco, Tuvalu, and Nauru. The International Monetary Fund (IMF) is an international financial institution created in 1944 to oversee the international financial system and promote global monetary cooperation. The IMF is dubbed the most powerful international organization in the 20th century, which has a very large influence on the welfare of most of the world's population. There are also those who make fun of the IMF as an abbreviation of "Institute Of Mistery and Famine" (Institute of Misery and Hunger). Like the World Bank, this institution was formed as a result of the Bretton Woods agreement after World War II. According to its founders, Keynes and Dexter White, the aim was to create a democratic institution that replaced the power of the international bankers and capital owners who were responsible for the economic recession of the 1930s. The main objective of the IMF is to oversee the international financial system and assist member countries in overcoming their economic and financial problems, as well as providing financial assistance to countries experiencing financial crises. The objective of the IMF in the establishment status of the IMF is referred to as the six objectives to be achieved by the IMF, namely: 1. To promote international monetary cooperation by establishing institutions 2. To expand world trade and investment 3. To promote the stability of foreign exchange rates 4. To reduce and limit restrictive practices on international payments 5. To provide funds that can be lent in the form of short-term or medium-term loans needed to maintain a stable foreign exchange rate as long as the balance of payments experiences a temporary deficit until it can be overcome by adjusting the high foreign exchange rate. 6. To shorten and minimize the size of the balance of payments deficit or surplus The IMF is funded by contributions from member countries, which also have a say in decision-making. Currently, the IMF has 190 member countries worldwide. Some of the IMF's activities related to the supervision of the international financial system include: 1. Analyze and monitor global economic conditions to identify risks and problems that may occur. 2. Provide advice to member countries on economic and financial policies, and assist in formulating and implementing economic reform programs. 3. Provide financial assistance to member countries experiencing financial crises, with terms and conditions set to ensure effective and efficient use of funds. 4. Provide support in institutional and policy capacity building in member countries, to help enhance their ability to address economic and financial issues. The IMF also has an important role in promoting global economic and financial stability, as well as contributing to strengthening the international financial system. However, the IMF has also received criticism from several parties, especially in relation to the terms and conditions provided for its financial assistance, as well as its influence on the economic policies of member countries. In addition, the IMF also has an important role in promoting sustainable and inclusive economic policies around the world. The IMF advises member countries on economic policies that can support sustainable growth, create more jobs and reduce poverty. The IMF also plays a role in strengthening the global financial system, including through monitoring and evaluating the stability of the global financial system, as well as providing advice and support to member countries in developing and implementing effective and efficient financial regulations and policies. However, the IMF is also often criticized for several reasons, including: 1. The IMF is considered to pay too much attention to the interests of developed countries and pay little attention to the interests of developing countries. 2. The terms and conditions set out in the IMF's financial assistance are considered too strict and difficult for recipient countries to fulfill. 3. The IMF is considered to be promoting neoliberal economic policies that do not pay attention to the interests of the wider community, and only benefit the financial and corporate sectors. 4. The IMF is considered to be too dependent on member countries which have a large contribution in its funding, so that the IMF's decision making can be influenced by the interests of these countries. Overall, the IMF is an important international financial institution in maintaining global economic and financial stability, as well as assisting member countries in overcoming the economic and financial problems they face. Nonetheless, the IMF also has limitations and receives criticism from various parties, so it is necessary to carry out reforms and changes that are better to answer the needs of member countries and society at large.