Function and Organization of the International Monetary Fund

Abstract

The IMF consists of its original members and others (Article II). There is no substantial difference in the qualifications for membership of the above two groups, but the procedure at the time of their entry is different. The former are those countries which participated in the Bretton Woods Conference, completed ratification by the end of 1946 (under the original Agreement, the deadline was the end of 1945, but at the Savannah inaugural meeting a decision was taken to extend the date by one year), and deposited their advice of agreement with the American Administration. The original members were 39 in all, that is, the 44 allied countries which were present at the above Conference less Australia, Haiti, Liberia, New Zealand and the Soviet Union. (Australia, Haiti and Liberia, however, later joined the Fund.) The other members were those countries which later became members in accordance with the terms prescribed by the IMF. The actual procedure was for such countries to request participation and present their requests to the Board of Governors (to be touched upon later) and, for the Executive Directors then to decide upon the conditions (such as quotas and methods of payments) which were then to be approved by the Board of Governors, and, lastly, the petitioning countries signed the Agreement and deposited their advice of agreement with the American Administration.