Reforming the International Monetary Fund Why its Legitimacy is at Stake

The International Monetary Fund was designed to promote internationalmonetary cooperation and foreign exchange stability, so as tofacilitate international trade, high levels of employment andreal income, and the development of the productive resourcesof all its members. However, the Fund's capacity to influenceits key members’ policies through its advice, and to giveconfidence to potential borrowers by offering opportune andmeaningful financial assistance in case of trouble, has beenseriously put into question. Its governance structure is inconsistentwith its multilateral nature and is dysfunctional to its purposes.There is also an ideological bias in its policy advice thatprevents the Fund from being responsive to citizens' concernsand challenges posed by globalization. The ongoing reform processis tinkering on the margins and if not redressed will fail tobring additional credibility and effectiveness to the Fund.