International Monetary Fund
The International Monetary Fund was established to foster international trade and currency conversion, which it does through consultation and loan activities. When created in 1946, the IMF had 39 member countries; by November 1999 the membership in the IMF had grown to 182 member countries. As of this writing, every major country is now a member, including the
former communist countries, as are includes numerous small countries. The only exceptions are Cuba and North Korea.
To join the IMF, a country must deposit a sum of money called a quota subscription, the amount of which is based on the wealth of the country's economy. Quotas are reconsidered every five years and can be increased or decreased based on IMF needs and the prosperity of the member country. In 1999, the United States contributed the largest percentage of the annual contributions—18 percent—because it had the largest, richest economy in the world. Voting rights are allocated in proportion to the quota subscription.
Historical Development
The Depression in the 1930s devastated international trade and monetary exchange, creating a great loss of confidence on the part of those engaged in international business and finance.
