Current Problems with the IMF and Challenges Ahead – A LatinAmerican Perspective

The paper examines the current problems with the IMF which include: 1) the institution is no longer fulfilling the functions it used to fulfil, nor is there a clear vision of any new functions for it; 2) due to a drastic pruning of its loan operations, it is not receiving enough revenue to cover its operating costs; 3) the IMF has not played a notable role in the debate a-bout global imbalances, even though this issue is at the very heart of its institutional remit; 4) it is suffering a crisis of legitimacy, with its power structure questioned by many members; 5) there is a lack of confidence, from quite different perspectives, in its intellectual orientation and the quality of its policy recommendations. It also analyzes the challenges IMF will face in the future. [FES briefing paper-16]