Poverty is the scarcity or the lack of a certain amount of material possessions or money. Poverty is a multifaceted concept, which may include social and political elements. Absolute poverty, extreme poverty, or destitution refers to the complete lack of the means necessary to meet basic personal needs such as food and shelter; the threshold at which absolute poverty is defined is considered to be about the same, independent of the person's permanent location or era. On the other hand, relative poverty occurs when a person who lives in a given country does not enjoy a certain minimum level of "living standards" as compared to the rest of the population of that country. Therefore, the threshold at which relative poverty is defined varies from country to another, or from one society to another. Providing basic needs can be restricted by constraints on government's ability to deliver services, such as corruption, tax avoidance and loan conditionalities and by the brain drain of health care and educational professionals.
Strategies of increasing income to make basic needs more affordable include welfare, economic freedoms and providing financial services. Poverty reduction is still a major issue for many international organizations such as the United Nations, the World Bank, United States Agency for International Development, Oxfam, CARE, World Vision International, the Bill and Melinda Gates Foundation, the Red Cross among a plethora of others. In 2012 it was estimated that, using a poverty line of $1.25 a day, 1.2 billion people lived in poverty. Given the current economic model, built on GDP, it would take 100 years to bring the world's poorest up to the poverty line of $1.25 a day. UNICEF estimates; the World Bank forecasted in 2015 that 702.1 million people were living in extreme poverty, down from 1.75 billion in 1990. Extreme poverty is observed in all parts including developed economies. Of the 2015 population, about 347.1 million people lived in Sub-Saharan Africa and 231.3 million lived in South Asia.
According to the World Bank, between 1990 and 2015, the percentage of the world's population living in extreme poverty fell from 37.1% to 9.6%, falling below 10% for the first time. The People's Republic of China accounts for over three quarters of global poverty reduction from 1990 to 2005. Though, as noted, China accounted for nearly half of all extreme poverty in 1990. In public opinion around the world people surveyed tend to incorrectly think extreme poverty hasn't decreased. During the 2013 to 2015 period The World Bank reported that extreme poverty fell from 11% to 10%, however they noted that the rate of decline had slowed by nearly half from the 25 year average with parts of sub-saharan Africa returning to early 2000 levels; the World Bank attributed this to increasing violence following the Arab Spring, population increases in Sub-Saharan Africa, general African inflationary pressures and economic malaise were the primary drivers for this slow down. There is disagreement among experts as to what would be considered a realistic poverty rate with one considering it "an inaccurately measured and arbitrary cut off".
Some contend that a higher poverty line is needed, such as a minimum of $7.40 or $10 to $15 a day. They argue that these levels would better reflect the cost of basic needs and normal life expectancy. One estimate places the true scale of poverty much higher than the World Bank, with an estimated 4.3 billion people living with less than $5 a day and unable to meet basic needs adequately. It has been argued by some academics that the neoliberal policies promoted by global financial institutions such as the IMF and the World Bank are exacerbating both inequality and poverty. Poverty is the lack of a certain amount of material possessions or money; the word poverty comes from Latin paupertās from pauper. There are several definitions of poverty depending on the context of the situation it is placed in, the views of the person giving the definition. Income Poverty: a family's income fails to meet a federally established threshold that differs across countries. United Nations: Fundamentally, poverty is the inability of having choices and opportunities, a violation of human dignity.
It means lack of basic capacity to participate in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one's food or a job to earn one's living, not having access to credit, it means insecurity and exclusion of individuals and communities. It means susceptibility to violence, it implies living in marginal or fragile environments, without access to clean water or sanitation. World Bank: Poverty is pronounced deprivation in well-being, comprises many dimensions, it includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, insufficient capacity and opportunity to better one's life. Poverty is measured as either absolute or relative. In the United Kingdom, the second Cameron ministry came under attack for their redefinition of poverty.
Considering that two-thirds of people who found work were accepting wages that are below the living wage t
Construction is the process of constructing a building or infrastructure. Construction differs from manufacturing in that manufacturing involves mass production of similar items without a designated purchaser, while construction takes place on location for a known client. Construction as an industry comprises six to nine percent of the gross domestic product of developed countries. Construction starts with planning and financing. Large-scale construction requires collaboration across multiple disciplines. A project manager manages the job, a construction manager, design engineer, construction engineer or architect supervises it; those involved with the design and execution must consider zoning requirements, environmental impact of the job, budgeting, construction-site safety and transportation of building materials, inconvenience to the public caused by construction delays and bidding. Large construction projects are sometimes referred to as megaprojects. Construction is a general term meaning the art and science to form objects, systems, or organizations, comes from Latin constructio and Old French construction.
To construct is the verb: the act of building, the noun construction: how a building was built, the nature of its structure. In general, there are three sectors of construction: buildings and industrial. Building construction is further divided into residential and non-residential. Infrastructure is called heavy civil or heavy engineering that includes large public works, bridges, railways, water or wastewater and utility distribution. Industrial construction includes refineries, process chemical, power generation and manufacturing plants. There are other ways to break the industry into sectors or markets. Engineering News-Record, a trade magazine for the construction industry, each year compiles and reports data about the size of design and construction companies. In 2014, ENR compiled the data in nine market segments divided as transportation, buildings, industrial, manufacturing, sewer/waste, hazardous waste and a tenth category for other projects. In their reporting, they used data on transportation, hazardous waste and water to rank firms as heavy contractors.
The Standard Industrial Classification and the newer North American Industry Classification System have a classification system for companies that perform or engage in construction. To recognize the differences of companies in this sector, it is divided into three subsectors: building construction and civil engineering construction, specialty trade contractors. There are categories for construction service firms and construction managers. Building construction is the process of adding structure to real property or construction of buildings; the majority of building construction jobs are small renovations, such as addition of a room, or renovation of a bathroom. The owner of the property acts as laborer and design team for the entire project. Although building construction projects consist of common elements such as design, financial and legal considerations, projects of varying sizes may reach undesirable end results, such as structural collapse, cost overruns, and/or litigation. For this reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.
Commercial building construction is procured or publicly utilizing various delivery methodologies, including cost estimating, hard bid, negotiated price, management contracting, construction management-at-risk, design & build and design-build bridging. Residential construction practices and resources must conform to local building authority regulations and codes of practice. Materials available in the area dictate the construction materials used. Cost of construction on a per square meter basis for houses can vary based on site conditions, local regulations, economies of scale and the availability of skilled tradesmen. Residential construction as well as other types of construction can generate waste such that planning is required. According to McKinsey research, productivity growth per worker in construction has lagged behind many other industries across different countries including in the United States and in European countries. In the United States, construction productivity per worker has declined by half since the 1960s.
The most popular method of residential construction in North America is wood-framed construction. Typical construction steps for a single-family or small multi-family house are: Obtain an engineered soil test of lot where construction is planned. From an engineer or company specializing in soil testing. Develop floor plans and obtain a materials list for estimations Obtain structural engineered plans for foundation and structure. To be completed by either a licensed engineer or architect. To include both a foundation and framing plan. Obtain lot survey Obtain government building approval if necessary If required obtain approval from HOA or ARC Clear the building site Survey to stake out for the foun
In economics, a free market is a system in which the prices for goods and services are determined by the open market and by consumers. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority, from all forms of economic privilege and artificial scarcities.. Proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods, such as tariffs, used to restrict trade and to protect the local economy. In an idealized free-market economy, prices for goods and services are set by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. Scholars contrast the concept of a free market with the concept of a coordinated market in fields of study such as political economy, new institutional economics, economic sociology and political science. All of these fields emphasize the importance in existing market systems of rule-making institutions external to the simple forces of supply and demand which create space for those forces to operate to control productive output and distribution.
Although free markets are associated with capitalism within a market economy in contemporary usage and popular culture, free markets have been advocated by anarchists and some proponents of cooperatives and advocates of profit sharing. Criticism of the theoretical concept may regard systems with significant market power, inequality of bargaining power, or information asymmetry as less than free, with regulation being necessary to control those imbalances in order to allow markets to function more efficiently as well as produce more desirable social outcomes; the laissez-faire principle expresses a preference for an absence of non-market pressures on prices and wages, such as those from discriminatory government taxes, tariffs, regulations of purely private behavior, or government-granted or coercive monopolies. In The Pure Theory of Capital, Friedrich Hayek argued that the goal is the preservation of the unique information contained in the price itself; the definition of free market has been disputed and made complex by collectivist political philosophers and socialist economic ideas.
This contention arose from the divergence from classical economists such as Richard Cantillon, Adam Smith, David Ricardo and Thomas Robert Malthus and from the continental economic science developed by the Spanish scholastic and French classical economists, including Anne-Robert-Jacques Turgot, Baron de Laune, Jean-Baptiste Say and Frédéric Bastiat. During the marginal revolution, subjective value theory was rediscovered. Although laissez-faire has been associated with capitalism, there is a similair left-wing laissez-faire system called free-market anarchism known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism. Thus, critics of laissez-faire as understood argues that a laissez-faire system would be anti-capitalist and socialist. Various forms of socialism based on free markets have existed since the 19th century. Early notable socialist proponents of free markets include Pierre-Joseph Proudhon, Benjamin Tucker and the Ricardian socialists.
These economists believed that genuinely free markets and voluntary exchange could not exist within the exploitative conditions of capitalism. These proposals ranged from various forms of worker cooperatives operating in a free market economy, such as the mutualist system proposed by Proudhon, to state-owned enterprises operating in unregulated and open markets; these models of socialism are not to be confused with other forms of market socialism where publicly owned enterprises are coordinated by various degrees of economic planning, or where capital good prices are determined through marginal cost pricing. Advocates of free-market socialism such as Jaroslav Vanek argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew the market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests.
Additionally, Vanek states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of the profits in addition to receiving their fixed wage or salary. Socialists assert that free-market capitalism leads to an excessively skewed distribution of income which in turn leads to social instability; as a result, corrective measures in the form of social welfare, re-distributive taxation and administrative costs are required, but they end up being paid into workers hands who spend and help the economy to run. They claim. Thus, free-market socialism desires government regulation of markets to prevent social instability, although at the cost of taxpayer dollars; as explained above, for classical economists such as Adam Smith the term free market does not refer to a market free from government interference, but rather free from all forms of economic privilege and artificial scarcities. This implies that economic rents, i.e. profits generated from a lack of perfect competition, must be reduced or eliminated as much as possible through free competition.
Economic theory suggests the returns to l
The Contras were the various U. S.-backed and funded right-wing rebel groups that were active from 1979 to the early 1990s in opposition to the socialist Sandinista Junta of National Reconstruction Government in Nicaragua. Among the separate contra groups, the Nicaraguan Democratic Force emerged as the largest by far. In 1987 all contra organizations were united, at least nominally, into the Nicaraguan Resistance. During their war against the Nicaraguan government, the Contras committed a large number of human rights violations and used terrorist tactics; these actions were carried out systematically as a part of the strategy of the Contras. Supporters of the Contras tried to downplay these violations the Reagan administration in the US, which engaged in a campaign of white propaganda to alter public opinion in favor of the contras, while covertly encouraging the Contras to attack civilian targets. From an early stage, the rebels received financial and military support from the United States government, their military significance decisively depended on it.
After US support was banned by Congress, the Reagan administration covertly continued it. These illegal activities culminated in the Iran–Contra affair; the term "contra" comes from the Spanish contra, which means against but in this case is short for la contrarrevolución, in English "the counter-revolution". The Contras were not a monolithic group, but a combination of three distinct elements of Nicaraguan society: Ex-guardsmen of the Nicaraguan National Guard and other right-wing figures who had fought for Nicaragua's ex-dictator Somoza—these were found in the military wing of the Nicaraguan Democratic Force. Remnants of the Guard formed groups such as the Fifteenth of September Legion, the Anti-Sandinista Guerrilla Special Forces, the National Army of Liberation. However, these groups were small and conducted little active raiding into Nicaragua. Anti-Somozistas who had supported the revolution but felt betrayed by the Sandinista government – e.g. Edgar Chamorro, prominent member of the political directorate of the FDN, or Jose Francisco Cardenal, who had served in the Council of State before leaving Nicaragua out of disagreement with the Sandinista government's policies and founding the Nicaraguan Democratic Union, an opposition group of Nicaraguan exiles in Miami.
Another example are the MILPAS, peasant militias led by disillusioned Sandinista veterans from the northern mountains. Founded by Pedro Joaquín González, the Milpistas were known as chilotes. After his death, other MILPAS bands sprouted during 1980–1981; the Milpistas were composed of campesino highlanders and rural workers. Nicaraguans who had avoided direct involvement in the revolution but opposed the Sandinistas; the CIA and Argentine intelligence, seeking to unify the anti-Sandinista cause before initiating large-scale aid, persuaded 15 September Legion, the UDN and several former smaller groups to merge in September 1981 as the Nicaraguan Democratic Force. Although the FDN had its roots in two groups made up of former National Guardsmen, its joint political directorate was led by businessman and former anti-Somoza activist Adolfo Calero Portocarrero. Edgar Chamorro stated that there was strong opposition within the UDN against working with the Guardsmen and that the merging only took place because of insistence by the CIA.
Based in Honduras, Nicaragua's northern neighbor, under the command of former National Guard Colonel Enrique Bermúdez, the new FDN commenced to draw in other smaller insurgent forces in the north. Financed, equipped and organized by the U. S. it emerged as the largest and most active contra group. In April 1982, Edén Pastora, one of the heroes in the fight against Somoza, organized the Sandinista Revolutionary Front – embedded in the Democratic Revolutionary Alliance – and declared war on the Sandinista government. Himself a former Sandinista who had held several high posts in the government, he had resigned abruptly in 1981 and defected, believing that the newly found power had corrupted the Sandinista's original ideas. A popular and charismatic leader, Pastora saw his group develop quickly, he confined himself to operate in the southern part of Nicaragua. A third force, appeared among the Miskito and Rama Amerindian peoples of Nicaragua's Atlantic coast, who in December 1981 found themselves in conflict with the authorities following the government's efforts to nationalize Indian land.
In the course of this conflict, forced removal of at least 10,000 Indians to relocation centers in the interior of the country and subsequent burning of some villages took place. The Misurasata movement split in 1983, with the breakaway Misura group of Stedman Fagoth Muller allying itself more with the FDN, the rest accommodating themselves with the Sandinistas: On 8 December 1984 a ceasefire agreement known as the Bogota Accord was signed by Misurasata and the Nicaraguan government. A subsequent autonomy statute in September 1987 defused Miskito resistance. U. S. officials were active in attempting to unite the Contra groups. In June 1985 most of the groups reorganized as the United Nicaraguan Opposition, under the leadership of Adolfo Calero, Arturo Cruz and Alfonso Robelo, all supporters of the anti-Somoza revolution. After UNO's dissolution early in 1987, the Nicaraguan Resistance was organized along similar lines in May. In front of the International Court of
The World Bank is an international financial institution that provides loans to countries of the world for capital projects. It comprises two institutions: the International Bank for Reconstruction and Development, the International Development Association; the World Bank is a component of the World Bank Group. The World Bank's most recent stated goal is the reduction of poverty; as of November 2018, the largest recipients of world bank loans were India and China, through loans from IBRD. The World Bank is different from the World Bank Group, an extended family of five international organizations: International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund; the president of the World Bank is, traditionally, an American. The World Bank and the IMF are both based in Washington, D.
C. and work with each other. Although many countries were represented at the Bretton Woods Conference, the United States and United Kingdom were the most powerful in attendance and dominated the negotiations; the intention behind the founding of the World Bank was to provide temporary loans to low-income countries which were unable to obtain loans commercially. The Bank may make loans and demand policy reforms from recipients. Before 1974, the reconstruction and development loans provided by the World Bank were small; the Bank's staff were aware of the need to instill confidence in the bank. Fiscal conservatism ruled, loan applications had to meet strict criteria; the first country to receive a World Bank loan was France. The Bank's president at the time, John McCloy, chose France over two other applicants and Chile; the loan was for US$250 million, half the amount requested, it came with strict conditions. France had to agree to produce a balanced budget and give priority of debt repayment to the World Bank over other governments.
World Bank staff monitored the use of the funds to ensure that the French government met the conditions. In addition, before the loan was approved, the United States State Department told the French government that its members associated with the Communist Party would first have to be removed; the French government complied and removed the Communist coalition government - the so-called tripartite. Within hours, the loan to France was approved; when the Marshall Plan went into effect in 1947, many European countries began receiving aid from other sources. Faced with this competition, the World Bank shifted its focus to non-European countries; until 1968, its loans were earmarked for the construction of infrastructure works, such as seaports, highway systems, power plants, that would generate enough income to enable a borrower country to repay the loan. In 1960, the International Development Association was formed, providing soft loans to developing countries. From 1974 to 1980 the bank concentrated on meeting the basic needs of people in the developing world.
The size and number of loans to borrowers was increased as loan targets expanded from infrastructure into social services and other sectors. These changes can be attributed to Robert McNamara, appointed to the presidency in 1968 by Lyndon B. Johnson. McNamara implored bank treasurer Eugene Rotberg to seek out new sources of capital outside of the northern banks, the primary sources of funding. Rotberg used the global bond market to increase the capital available to the bank. One consequence of the period of poverty alleviation lending was the rapid rise of third world debt. From 1976 to 1980 developing world debt rose at an average annual rate of 20%. In 1980 the World Bank Administrative Tribunal was established to decide on disputes between the World Bank Group and its staff where allegation of non-observance of contracts of employment or terms of appointment had not been honored. In 1980 McNamara was succeeded by Alden W. Clausen. Clausen crafted a different mission emphasis, his 1982 decision to replace the bank's Chief Economist, Hollis B.
Chenery, with Anne Krueger was an example of this new focus. Krueger was known for her criticism of development funding and for describing Third World governments as "rent-seeking states". During the 1980s the bank emphasized lending to service Third-World debt, structural adjustment policies designed to streamline the economies of developing nations. UNICEF reported in the late 1980s that the structural adjustment programs of the World Bank had been responsible for "reduced health and educational levels for tens of millions of children in Asia, Latin America, Africa". Beginning in 1989, in response to harsh criticism from many groups, the bank began including environmental groups and NGOs in its loans to mitigate the past effects of its development policies that had prompted the criticism, it formed an implementing agency, in accordance with the Montreal Protocols, to stop ozone-depletion damage to the Earth's atmosphere by phasing out the use of 95% of ozone-depleting chemicals, with a target date of 2015.
Since in accordance with its so-called "Six Strategic Themes", the bank has put various additional policies into effect to preserve the environment while promoting development. For example, in 1991 the bank announced that to protect against deforestation in the Amazon, it would not finance any commercial logging or infrastructure projects that harm the en
Mexico the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States. Covering 2,000,000 square kilometres, the nation is the fifth largest country in the Americas by total area and the 13th largest independent state in the world. With an estimated population of over 120 million people, the country is the eleventh most populous state and the most populous Spanish-speaking state in the world, while being the second most populous nation in Latin America after Brazil. Mexico is a federation comprising 31 states and Mexico City, a special federal entity, the capital city and its most populous city. Other metropolises in the state include Guadalajara, Puebla, Tijuana and León. Pre-Columbian Mexico dates to about 8000 BC and is identified as one of five cradles of civilization and was home to many advanced Mesoamerican civilizations such as the Olmec, Teotihuacan, Zapotec and Aztec before first contact with Europeans. In 1521, the Spanish Empire conquered and colonized the territory from its politically powerful base in Mexico-Tenochtitlan, administered as the viceroyalty of New Spain.
Three centuries the territory became a nation state following its recognition in 1821 after the Mexican War of Independence. The post-independence period was tumultuous, characterized by economic inequality and many contrasting political changes; the Mexican–American War led to a territorial cession of the extant northern territories to the United States. The Pastry War, the Franco-Mexican War, a civil war, two empires, the Porfiriato occurred in the 19th century; the Porfiriato was ended by the start of the Mexican Revolution in 1910, which culminated with the promulgation of the 1917 Constitution and the emergence of the country's current political system as a federal, democratic republic. Mexico has the 11th largest by purchasing power parity; the Mexican economy is linked to those of its 1994 North American Free Trade Agreement partners the United States. In 1994, Mexico became the first Latin American member of the Organisation for Economic Co-operation and Development, it is classified as an upper-middle income country by the World Bank and a newly industrialized country by several analysts.
The country is considered both a regional power and a middle power, is identified as an emerging global power. Due to its rich culture and history, Mexico ranks first in the Americas and seventh in the world for number of UNESCO World Heritage Sites. Mexico is an ecologically megadiverse country, ranking fourth in the world for its biodiversity. Mexico receives a huge number of tourists every year: in 2018, it was the sixth most-visited country in the world, with 39 million international arrivals. Mexico is a member of the United Nations, the World Trade Organization, the G8+5, the G20, the Uniting for Consensus group of the UN, the Pacific Alliance trade bloc. Mēxihco is the Nahuatl term for the heartland of the Aztec Empire, namely the Valley of Mexico and surrounding territories, with its people being known as the Mexica, it is believed to be a toponym for the valley which became the primary ethnonym for the Aztec Triple Alliance as a result, although it could have been the other way around.
In the colonial era, back when Mexico was called New Spain this territory became the Intendency of Mexico and after New Spain achieved independence from the Spanish Empire it came to be known as the State of Mexico with the new country being named after its capital: the City of Mexico, which itself was founded in 1524 on top of the ancient Mexica capital of Mexico-Tenochtitlan. Traditionally, the name Tenochtitlan was thought to come from Nahuatl tetl and nōchtli and is thought to mean "Among the prickly pears rocks". However, one attestation in the late 16th-century manuscript known as "the Bancroft dialogues" suggests the second vowel was short, so that the true etymology remains uncertain; the suffix -co is the Nahuatl locative, making the word a place name. Beyond that, the etymology is uncertain, it has been suggested that it is derived from Mextli or Mēxihtli, a secret name for the god of war and patron of the Mexica, Huitzilopochtli, in which case Mēxihco means "place where Huitzilopochtli lives".
Another hypothesis suggests that Mēxihco derives from a portmanteau of the Nahuatl words for "moon" and navel. This meaning might refer to Tenochtitlan's position in the middle of Lake Texcoco; the system of interconnected lakes, of which Texcoco formed the center, had the form of a rabbit, which the Mesoamericans pareidolically associated with the moon rabbit. Still another hypothesis suggests that the word is derived from Mēctli, the name of the goddess of maguey; the name of the city-state was transliterated to Spanish as México with the phonetic value of the letter x in Medieval Spanish, which represented the voiceless postalveolar fricative. This sound, as well as the voiced postalveolar fricative, represented by a j, evolved into a voiceless velar fricative during the 16th century; this led to the use of the variant Méjico in many publications in Spanish, most notably in Spain, whereas in Mexico and most other Spanish–speaking countries, México was the preferred spelling. In recent years, the Real Academia Española, which regulates the Spanish l
International Monetary Fund
The International Monetary Fund is an international organization headquartered in Washington, D. C. consisting of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, reduce poverty around the world." Formed in 1944 at the Bretton Woods Conference by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money; as of 2016, the fund had SDR477 billion. Through the fund, other activities such as the gathering of statistics and analysis, surveillance of its members' economies and the demand for particular policies, the IMF works to improve the economies of its member countries.
The organisation's objectives stated in the Articles of Agreement are: to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, making resources available to member countries in financial difficulty. IMF funds come from two major sources:quotas and loans. Quotas, which are pooled funds of member nations, generate most IMF funds; the size of a member's quota depends on its financial importance in the world. Nations with larger economic importance have larger quotas; the quotas are increased periodically as a means of boosting the IMF's resources. The current Managing Director and Chairwoman of the International Monetary Fund is French lawyer and former politician, Christine Lagarde, who has held the post since 5 July 2011. Gita Gopinath was appointed as Chief Economist of IMF from October 1, 2018, she received her Ph. D. in economics from Princeton University. According to the IMF itself, it works to foster global growth and economic stability by providing policy advice and financing the members by working with developing nations to help them achieve macroeconomic stability and reduce poverty.
The rationale for this is that private international capital markets function imperfectly and many countries have limited access to financial markets. Such market imperfections, together with balance-of-payments financing, provide the justification for official financing, without which many countries could only correct large external payment imbalances through measures with adverse economic consequences; the IMF provides alternate sources of financing. Upon the founding of the IMF, its three primary functions were: to oversee the fixed exchange rate arrangements between countries, thus helping national governments manage their exchange rates and allowing these governments to prioritize economic growth, to provide short-term capital to aid the balance of payments; this assistance was meant to prevent the spread of international economic crises. The IMF was intended to help mend the pieces of the international economy after the Great Depression and World War II; as well, to provide capital investments for economic growth and projects such as infrastructure.
The IMF's role was fundamentally altered by the floating exchange rates post-1971. It shifted to examining the economic policies of countries with IMF loan agreements to determine if a shortage of capital was due to economic fluctuations or economic policy; the IMF researched what types of government policy would ensure economic recovery. A particular concern of the IMF was to prevent financial crisis, such as those in Mexico 1982, Brazil in 1987, East Asia in 1997–98 and Russia in 1998, from spreading and threatening the entire global financial and currency system; the challenge was to promote and implement policy that reduced the frequency of crises among the emerging market countries the middle-income countries which are vulnerable to massive capital outflows. Rather than maintaining a position of oversight of only exchange rates, their function became one of surveillance of the overall macroeconomic performance of member countries, their role became a lot more active because the IMF now manages economic policy rather than just exchange rates.
In addition, the IMF negotiates conditions on lending and loans under their policy of conditionality, established in the 1950s. Low-income countries can borrow on concessional terms, which means there is a period of time with no interest rates, through the Extended Credit Facility, the Standby Credit Facility and the Rapid Credit Facility. Nonconcessional loans, which include interest rates, are provided through Stand-By Arrangements, the Flexible Credit Line, the Precautionary and Liquidity Line, the Extended Fund Facility; the IMF provides emergency assistance via the Rapid Financing Instrument to members facing urgent balance-of-payments needs. The IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its member countries; this activity facilitates international co-operation. Since the demise of the Bretton Woods system of fixed exchange rates in the early 1970s, surveillance has evolved by way of changes in procedures rather than through the adoption of new obligations.
The responsibilities changed from those of guardian to those of overseer of members' policies. The Fund analyses the appropriateness of each member country's economic and financial policies for achieving orderly economic growth, assesses the consequences of these policies for other countries and for the global e