International Monetary Fund

The World Bank and the International Monetary Fund (IMF) were born out of the post-World War II Bretton Woods conference designed to correct “failures” in international capital markets that prevented global capital from flowing to the right destinations, particularly poor countries. The IMF was to ensure exchange rate stability and provide liquidity to the new pegged exchange rate system by making short-term loans to countries to address their balance of payments problems. The IMF or the Fund was to be an agency that would ensure international financial stability while the World Bank was to provide lon-term loans for reconstruction and development.

Every member country contributes a portion of its national income to the IMF, against which it is eligible to borrow. The Central Bank or Treasury of a country acts as the representative of that country to the IMF. Credit tranches are blocks of loans given by the IMF to members upon request. The first two tranches are lent out without hesitation but subsequent tranches are given only if the country promises to install economic policies that are designed to secure a country's financial position.

A large share of the IMF's lending has been to developing countries. Such lending began in the 1950s and increased over time thereafter. During 1976 and 1982, the IMF approved 114 new stand-by arrangements (assurance to borrow a certain amount within a fixed time provided that the provisions are met) of which 108 were with developing countries. Because developing countries have used more of their credit tranches, they have been subject to conditionality by the IMF.

The IMF is a leader in establishing theory and practice in macroeconomic policy in developing countries. As the most influential organization in development finance, it attracts renowned academics and practitioners. Because of the paucity of women in this field, most of the senior officials and the top theoreticians have been men. Fewer than 20 percent of the senior administration is female and fewer than 10 percent of the members of the organization's boards of governors are women. While the IMF has the authority to alter the gender composition of its staff, it has little control over the board of governors, which are appointed by individual member countries. Yet the discussion below shows that IMF policies have greatly affected and altered the lives of millions of women across the world.