¹ Horsefield, J. K. (ed.), The International Monetary Fund, 1945–1965: Twenty Years of International Monetary Cooperation, Vol. III (documents): Keynes Plan, 3–36, White Plan, 37–96.Google Scholar

² Harry Dexter White noted in 1942 that the matters concerning balance of payments and economic development should be kept strictly separate.

³ See SirGold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Washington, 1979, 506.Google Scholar

⁴ The British Executive Director, for instance, has the wealth of experience of both the Bank of England and the Treasury at his beck and call. In contrast, some developing countries are represented by directors from the developed countries.

⁵ SirGold, Joseph, in Horsefield, J. K., op. cit., 254 and 520.Google Scholar

⁶ Full name: Inter-Governmental Group of Twenty-Four on International Monetary Affairs and Related Matters.

⁷ SirGold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Washington, 1979, 269.Google Scholar

⁸ Ibid., 273.

⁹ Conditionality was first formalised in 1952, but not finally placed on a firm legal basis before the Second Amendment, Art. V, s. 3 (a) which expressly refers to “adequate safeguards for the temporary use of the general resources of the Fund”.

¹⁰ Keynes's precise words on that occasion were “… such discretionary rights as might be accorded to the Fund should be framed to distinguish between the case of a developed country managing its affairs prudently so as to avoid recourse to the Fund, and that of an irresponsible small country anxious to exploit a new source of borrowing”. See Horsefield, J. K., The I.M.F., 1945–1965: Twenty Years of International Monetary Cooperation, Vol. I, 76–77.Google Scholar

¹¹ Note the objections voiced by Alexandre Kafka, the Brazilian Director, to the lightness of the terms of “conditionality” decided upon on that occasion. See Dell, S., On Being Grandmotherly: The Evolution of I.M.F. Conditionality, Princeton, 1981, 12–13.Google Scholar

¹² Professor Essang, Nigerian Minister of Finance. See Financial Times, 29 09, 1980.Google ScholarPubMed

¹³ Former Jamaican Prime Minister, Michael Manley. See ibid., 3 June, 1980.

¹⁴ Thus, R. H. P. Small, Jamaica's former Minister of Finance, who showed that if the United States were asked to make an adjustment of the magnitude then expected of Jamaica, it would need to reduce the federal budget for 1980–81 by U.S. $103 billion, and to cut back 1.7 million federal and state employees. See ibid., 3 October, 1980. On the particularly unfortunate case of Jamaica, see Butler, N., The I.M.F.: Time for Reform (Fabian Pamphlet No. 50), 1982, 10–14.Google Scholar

¹⁵ See Frenkel, R. and O'Donnell, G., “The Stabilization Programs of the I.M.F. and Their Internal Impacts”, in Fagen, R. R. (ed.) Capitalism and the State in United States–Latin American Relations, Stanford, 1979, 171–216Google Scholar, and Dǭaz-Alejandro, C. F., Exchange-Rate Devaluation in a Semi-Industrialized Country: The Experience of Argentina, Cambridge, 1965.Google Scholar

See, however, also a report in the Financial Times of 21 03, 1979,Google Scholar according to which the Government of Sri Lanka is believed to have been under pressure from the I.M.F. which is said to have argued that, because the removal of a rice subsidy did not result in riots, there was scope to phase out other subsidies at a faster pace.

A British economist recently argued in the same vein that the removal of food subsidies will hit the urban poor in the developing countries hardest. See Bird, G., “Financial Flow to Developing Countries: the Role of the I.M.F”, (1981) 7 Review of International Studies 81, 105.Google Scholar

¹⁶ Financial Times, 21 03, 1979.Google ScholarPubMed

¹⁷ Recent ones included those in Egypt in 1977 (“bread riots”), in Morocco in 06, 1981, and in the Sudan in 01, 1982.

¹⁸ Butler, N., The I.M.F.: Time for Reform (Fabian Pamphlet No. 50), 1982, 23.Google Scholar

¹⁹ See The Balance of Payments Adjustment Process in Developing Countries: Report to the Group of Turnip-Four (U.N.D.P./UNCTAD Project, INT/75/015), 1–7.Google Scholar

²⁰ For details, see I.M.F. Annual Report, 1979, 136–138Google Scholar, and ibid., 1980, in respect of the follow-up Decision 6230 (79/140) of 3 08, 1979, 138–139Google Scholar.

²¹ Those of the United States, Western Germany, the United Kingdom, France and Japan.

²² For a thorough discussion, see Park, Y. S., The Link Between S.D.R. and Development Finance, Princeton, 1973Google Scholar. See also Rweyemamu, J. F., “Restructuring the International Monetary System”, (1980) 2 Development Dialogue 75, at 79–82.Google Scholar

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²⁴ See Saladdin, P., “The Link Between the Creation of S.D.R.s and Development Finance”, (1981) 1 Development Dialogue 38–46.Google Scholar

²⁵ See Helleiner, G. K., International Economic Disorder, Toronto, 1981, 133–134,Google Scholar and Bird, G., “S.D.R. Distribution, Interest Rates and Aid Flows”, (1981) 4 The World Economy, 419, at 421.Google Scholar

²⁶ Art. V, s. 3 (a) expressly confers the right to proceed to the creation of special facilities by allowing the Fund to “adopt policies on the use of its general resources, including policies on the use of stand-by or similar arrangements, and may adopt special policies for special balance of payments problems⃜”

²⁷ SirGold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Washington, 1979, 45.Google Scholar

²⁸ Ibid., 43–45.

²⁹ The latest special facility, the Cereal Import Facility, set up by an I.M.F. Decision of 13 05, 1981, No. 6860 (81/81)Google Scholar, has been integrated into the Compensatory Finance Facility. See I.M.F. Survey, 21 09, 1981.Google Scholar See also I.M.F. Annual Report 1981, 169–171,Google Scholar and Green, C. and Kirkpatrick, C. “The I.M.F. Food Financing Facility”, (05–06, 1982) 16 Journal of World Trade Law 265–273.Google Scholar

³⁰ See Meagher, R., “The Expansion and Modification of the I.M.F.'s Compensatory Finance Facility”, (1977) 11 International Lawyer 277–289.Google Scholar

³¹ See Parkinson, F., “The United Nations Integrated Programme for Commodities”, (1981) 34 Current Legal Problems 259–277.Google Scholar

^31a See Meagher, , op. cit., 288.Google Scholar

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³² See Decision 4238 (74/67) of 13 06, 1974 in I.M.F. Annual Report, 1974, 122–128Google Scholar and Decision 4634 (75/47) of 4 04, 1975Google Scholar, in ibid., 1975, 53–55. See also I.M.F. Survey, 8 04, 1975, and I.M.F. Annual Report, 1978, 75–76.Google Scholar

³³ I.M.F. Annual Report, 1976, 95.Google Scholar

³⁴ Decision 5508 (77/127) of 29 08, 1977.Google Scholar See I.M.F. Annual Report, 1978, 112–119.Google Scholar

³⁵ See I.M.F. Annual Report, 1978, 113Google Scholar, and ibid., 1980, 78–79.

³⁶ For a summary of use, see I.M.F. Survey, 19 04, 1976.Google Scholar

³⁷ I.M.F. Annual Report, 1975, 35 and 90–91.Google Scholar

³⁸ I.M.F. Survey, 5 03, 1979.Google Scholar

³⁹ I.M.F. Survey, 3 09, 1979.Google Scholar It was determined that 104 members could be classed as developing for this purpose and that these had contributed 28 per cent, of the total quotas of the I.M.F. Twenty-eight per cent. of the profits of the sales were therefore distributed to those members. For further information, see I.M.F. Annual Reports for 1977, 60 and 111–117; 1978, 76–78; 1979, 86–87; and 1980, 85–89.Google Scholar

⁴⁰ A list of eligible states was compiled based on per capita income below a threshold of less than or equal to S.D.R. 300 in 1973, for the first period, 1 07, 1976–30 June, 1978; and less or equivalent to S.D.R. 520 in 1975, for the second period, 1 July, 1978–30 06, 1980.Google Scholar

⁴¹ I.M.F. Survey, 17 05, 1976.Google Scholar

⁴² I.M.F. Annual Report, 1977, 66–67.Google Scholar

⁴³ I.M.F. Annual Report, 1975, 54–55 and 88–90.Google Scholar

⁴⁴ India's 1981 S.D.R. 5 billion drawing under the E.F.F. is to be used—according to the Indian Government—to bring about structural changes in the economy in order to reduce the current account deficit. See Financial Times, 11 11, 1981.Google ScholarPubMed

⁴⁵ SirGold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Washington, 1979, 492.Google Scholar

⁴⁶ Decision 4377–(74/114), 13 09, 1974.Google Scholar

⁴⁷ No fewer than ten such exemptions were granted during the period 1980–81. See I.M.F. Annual Report, 1981, 84.Google Scholar

⁴⁸ According to the Managing Director of the I.M.F., external payment deficits of developing countries had risen from 3 per cent. of their G.D.P. in the early 1970s to 7 per cent. in 1981. See I.M.F. Survey, 9 02, 1981.Google Scholar

As to the principal order of magnitude of drawings, it was appropriately noted by The Economist, 15 05, 1982,Google Scholar that if the Indian purchase of S.D.R. 5 billion in 1981 had been only half that amount, India would not have bothered.

⁴⁹ See below. Guyana drew four times its quota in 1980. See Financial Times, 24 07, 1980.Google ScholarPubMed

⁵⁰ I.M.F. Annual Report, 1981, 87–88 and 153–155.Google Scholar

⁵¹ SirGold, Joseph, Financial Assistance by the I.M.F. ( I. M. F., 1980), 7.Google Scholar

⁵² The Committee of Twenty considered at length the question of “taxing” the surplus countries. Its search for “objective indicators” to trigger a legal obligation of a surplus country proved fruitless. The idea of a surplus tax on reserves above a certain level, and other ideas were similarly stillborn. The Second Amendment was silent on that point.

⁵³ The Second Amendment (1976) did, however, give the I. M. F. the duty of monitoring a member's exchange-control regulations. This authority may, judiciously used, turn out to be a useful form of influence.

⁵⁴ Financial Times, 28 03, 1981.Google Scholar See also I.M.F. Survey, 18 05, 1981.Google Scholar For details regarding the borrowing arrangements with the Saudi Arabian Monetary Agency, see Decision 6843–(81/75)of 6 05, 1981,Google Scholar in I.M.F. Annual Report, 1981, 91–92 and 172–189.Google Scholar

⁵⁵ Financial Times, 29 09, 1980.Google ScholarPubMed

⁵⁶ Ibid., 3 October, 1980.

⁵⁷ See Kaletsky, Anatole, in Financial Times, 3 10, 1980.Google Scholar In 1980 and 1981, the I. M. F.'s commitments to developing countries surged: net commitments rose from S.D.R. 1.8 billion in 1979 to S.D.R. 6·8 billion in 1980, and S.D.R. 12·7 billion in 1981. See Financial Times, 11 06, 1982.Google Scholar

⁵⁸ On this point, see Tew, B., “The Position and Prospects of the International Monetary System in Historical Context”, (1981) 2 O.D.I. Review, 21, at 39.Google Scholar

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⁶⁰ On this point, see United Nations Economic Commission for Latin America, Development Problems in Latin America, Austin, 1970.Google ScholarPubMed

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⁶⁴ The Managing Director, Larosière, J. Jacques de, in his information to the United Nations Economic and Social Council of 4 07, 1980.Google Scholar

⁶⁵ See Financial Times, 5 02, 1982, on Costa Rica.Google ScholarPubMed

⁶⁶ Ibid., 22 February, 1982.

⁶⁷ The Economist, 8 05, 1982.Google ScholarPubMed

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⁶⁹ Colchester, Nicholas, writing in Financial Times, 11 06, 1982.Google Scholar

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⁷⁴ Financial Times, 24 07, 1980.Google ScholarPubMed

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⁸¹ Ibid., 17 September, 1980.

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⁸³ Critics of monetarist solutions have argued that trade controls, and/or multiple exchange rates are preferable to measures of liberalisation, since they would not impede the growth of indigenous manufacturing. See Streeten, P., “The Developing Countries in a World of Flexible Exchange Rates”, (01–02, 1971) International Currency Review 2. For a general critique,Google Scholar see Dell, S. and Lawrence, R., The Balance of Payments Adjustment Process in Developing Countries, New York, 1980.Google Scholar

⁸⁴ Financial Times, 6 01, 1981.Google ScholarPubMed

⁸⁵ According to the I.M.F. Annual Report, 1981, the voting strength of the Group of Five on the Executive Board is as follows: United States: 20·01 per cent.; United Kingdom: 6·99 per cent,; Western Germany: 5·16percent.; France: 4·60 per cent.; Japan: 3·98 percent.

⁸⁶ Financial Times, 11 06, 1982.Google ScholarPubMed

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