INTERNATIONAL MONETARY FUND

HISTORY, GLOBAL ROLE, AND WORK IN RUSSIA

INTERNATIONAL MONETARY FUND

HISTORY, GLOBAL ROLE, AND WORK IN RUSSIA

Odd Per BrekkSenior Resident Representative

State University of ManagementJune 18, 2012

Odd Per BrekkSenior Resident Representative

State University of ManagementJune 18, 2012

Outline of PresentationOutline of Presentation• The IMF

Historical background Operations

• Russia and the IMF Russia’ role and membership Economic policy issues facing Russia

• The IMF Historical background Operations

• Russia and the IMF Russia’ role and membership Economic policy issues facing Russia

IMF ROOTSIMF ROOTS

IMF FOUNDERSIMF FOUNDERS

IMF TodayIMF Today 2,500 stafffrom 160 countries

GLOBAL MEMBERSHIPGLOBAL MEMBERSHIP188 COUNTRIES REPRESENTEDNON-MEMBERS INCLUDE: CUBA, NORTH KOREA, ANDORRA, MONACO, NAURU, LIECHTENSTEIN188 COUNTRIES REPRESENTEDNON-MEMBERS INCLUDE: CUBA, NORTH KOREA, ANDORRA, MONACO, NAURU, LIECHTENSTEIN

MANDATE: GLOBAL ECONOMIC & FINANCIAL STABILITYMANDATE: GLOBAL ECONOMIC & FINANCIAL STABILITYSHORT-TERM BALANCE OF PAYMENT SUPPORTFACILITATE EXPANSION IN TRADE, HIGH LEVELS OF EMPLOYMENT AND INCOMESHORT-TERM BALANCE OF PAYMENT SUPPORTFACILITATE EXPANSION IN TRADE, HIGH LEVELS OF EMPLOYMENT AND INCOME

PILLAR OF MULTILATERALISMPILLAR OF MULTILATERALISMPROMOTES ECONOMIC COOPERATIONCOMPLEMENTS THE UN, WORLD BANK, WTO & ILOPROMOTES ECONOMIC COOPERATIONCOMPLEMENTS THE UN, WORLD BANK, WTO & ILO

How the IMF worksHow the IMF works

BOARD OF GOVERNORS188ONCE A YEAR

INTERNATIONAL MONETARY & FINANCIAL COMMITTEE24TWICE A YEAR

EXECUTIVE BOARD24THREE TIMES A WEEK

BOARD OF GOVERNORS188ONCE A YEAR

INTERNATIONAL MONETARY & FINANCIAL COMMITTEE24TWICE A YEAR

EXECUTIVE BOARD24THREE TIMES A WEEK

WHAT’S A QUOTA?WHAT’S A QUOTA?COUNTRY SUBSCRIPTION

VOTING POWER

ACCESS TO FINANCING

COUNTRY SUBSCRIPTION

VOTING POWER

ACCESS TO FINANCING

\ˈkwō-tə\ \ˈkwō-tə\

GovernanceGovernance6%6%

SHIFT OF VOTING SHARES TO EMERGING MARKET AND DEVELOPING COUNTRIES

BRICS IN TOP 10 SHAREHOLDERS

GLOBAL INSTITUTION, REFLECTING GLOBAL REALITY

MANAGEMENTMANAGEMENT1 MANAGING DIRECTOR

1 FIRST DEPUTY MANAGING DIRECTOR3 DEPUTY MANAGING DIRECTORS

1 MANAGING DIRECTOR1 FIRST DEPUTY MANAGING DIRECTOR

3 DEPUTY MANAGING DIRECTORS

SURVEILLANCESURVEILLANCE Economic DoctorEconomic Doctor

BILATERAL, REGIONAL, GLOBAL

RUTHLESS TRUTH TELLER

SYSTEMIC COUNTRIES / CROSS-COUNTRY EFFECTS

LENDINGLENDING GLOBAL FIREFIGHTERGLOBAL FIREFIGHTER

CRISIS MANAGEMENT & PREVENTION

TAILORED TO COUNTRY NEEDS

FLEXIBLE, FOCUSED, SOCIAL

NON-CONCESSIONAL

CONCESSIONAL

CONDITIONALITY

Technical AssistanceTechnical Assistance COACHCOACH

STRONG POLICIES ARE BUILT ON STRONG FOUNDATIONS

REGIONAL TECHNICAL ASSISTANCE CENTERS

STRONG POLICIES ARE BUILT ON STRONG FOUNDATIONS

REGIONAL TECHNICAL ASSISTANCE CENTERS

Russia and the IMFRussia and the IMF• Membership date: June 1, 1992• Quota: SDR 5.9 billion; 2.5 percent of total• Number of IMF Russian staff members: 44, of whom about 30 economists• Financial programs: Last one approved in 1999 and expired in 2000• Current areas of work: (i) surveillance; (ii) technical assistance

• Membership date: June 1, 1992• Quota: SDR 5.9 billion; 2.5 percent of total• Number of IMF Russian staff members: 44, of whom about 30 economists• Financial programs: Last one approved in 1999 and expired in 2000• Current areas of work: (i) surveillance; (ii) technical assistance

Russia: Economic Challenges

Russia: Economic Challenges

0 2 4 6 8 10 120

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8

BRANew EU

ZAF

RUS

INDEA

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Average growth (2000−10)S

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iati

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Volatile growth

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BRANew EU

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RUS

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Average inflation (2000−10)

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High and volatile in-flation

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Russia: Relative GNI per capita (PPP), 1991-2010

Ratio to OECD PPP GNI per capita (percent, lhs)

World Oil Price (US dollar, rhs)

Russia: Economic Policy Priorities

Russia: Economic Policy Priorities

• Anchor government budget policy• Anchor monetary policy and inflation expectations

• Promote financial sector stability and development

• Improve the investment environment

• Anchor government budget policy• Anchor monetary policy and inflation expectations

• Promote financial sector stability and development

• Improve the investment environment

Thank you !Questions or comments ?

Thank you !Questions or comments ?