analysis assesses how policy interventions will affect pay and retraining for public sector employees who the well-being of different social groups, especially the have lost their jobs; and employment through public SUPPLEMENT vulnerable and the poor. Those countries that are able works programs. About three-fourths of the low- to do so will conduct the analysis during the prepara- income countries that had IMF-supported programs tion of PRSPs. For those countries where national during 1994–98 included social safety nets in their capacity is weak, the IMF will draw on the work done programs. by the World Bank and other development partners in the PRSP process. What else can the IMF do? When the social impact analysis indicates that a The IMF has improved the collection of data on gov- particular measure (for example, currency devalua- ernment social expenditures, as well as the monitoring tion) may adversely affect groups of the poor, such of social indicators, especially in the heavily indebted effects would be addressed through the choice or tim- poor countries. Work on the PRSP process is still ing of policies as well as through social safety nets. The evolving and is expected to forge a stronger link safety nets built into IMF-supported programs have between social spending and social indicators and included subsidies or cash compensation for particu- focus attention more closely on how to help the poor. lar vulnerable groups; improved distribution of essen- Additionally, the IMF and the World Bank are jointly tial commodities, such as medicines; temporary price assisting heavily indebted poor countries in building controls on some essential commodities; severance the capacity to track poverty-related spending.

Chronology IMF adapts and expands operations to meet member countries’ changing needs 1945 December 27 Articles of Agreement enter into force upon signature by 29 governments, representing 80 percent of origi- nal quotas.

1946 March 8–18 Inaugural meeting of Board of Governors in Savannah, Georgia: by-laws are adopted, agreement is reached to locate IMF headquarters in Washing- ton, D.C., and first Executive Directors are elected. May 6 Mt. Washington Hotel, Bretton Twelve Executive Directors, five appointed and seven October 1 Executive Board approves proposals for standardized Woods, New elected, hold inaugural meeting in Washington, D.C. Hampshire, where Stand-By Arrangements. the Articles of September 27–October 5 Agreement of the First Annual Meetings of Boards of Governors of 1962 IMF and the World IMF and World Bank are held in Washington, D.C. Bank were signed January 5 in 1944. 1947 Executive Board adopts terms and conditions of General Arrangements to Borrow (GAB). March 1 IMF begins operations. 1963 May 8 February 27 First drawing from IMF (by France). Compensatory Financing Facility is created.

1952 1967 August 13–14 September 29 Germany and Japan become members. Board of Governors approves plan to establish special September 2001 drawing rights (SDRs). 27

©International Monetary Fund. Not for Redistribution 1969 1976 SUPPLEMENT July 28 May 5 First Amendment to Articles of Agreement, establish- Executive Board establishes a Trust Fund to provide ing a facility based on the SDR, takes effect after balance of payments assistance to developing country acceptance by three-fifths of membership representing members with profits from the sale of gold. The Board four-fifths of voting power. decides on policies and procedures for selling gold. June 2 1970 IMF holds first gold auction under Interim January 1 Committee understandings on disposition of one- First allocation of SDRs. third of IMF gold holdings. Proceeds of sales to go to Trust Fund to benefit developing countries. 1971 August 15 1977 United States informs IMF it will no longer freely buy February 4 and sell gold to settle international transactions. Par IMF makes first loan disbursements under Trust values and convertibility of the dollar—two main fea- Fund. tures of the Bretton Woods system—cease to exist. August 29 December 18 Executive Board establishes Supplementary Financing After four months of negotiations, Smithsonian Facility. Agreement provides for realignment of industrial country currencies and increase in price of gold. 1978 IMF establishes temporary regime of central rates April 1 and wider margins. Second Amendment of Articles of Agreement enters into force, establishing the right of members to adopt 1972 exchange rate arrangements of their choice. July 26 September 24 Board of Governors adopts resolution establishing a Interim Committee approves 50 percent quota Committee on Reform of the International Monetary increase under Seventh Review, which, when accepted System, known as the Committee of 20. by all members, raises IMF general resources to SDR 58.6 billion; it also agrees on new allocations of 1973 SDR 4 billion each year for three years beginning March 19 January 1979. “Generalized floating” begins as European Community countries introduce joint float for their 1979 currencies against U.S. dollar. February 23 Supplementary Financing Facility enters into force. 1974 June 12–13 1980 Committee of 20 concludes work, agreeing on imme- April 25 diate program to help monetary system evolve. Interim Committee agrees that IMF should be ready Executive Board establishes oil facility and adopts to play growing role in adjustment and financing of “Guidelines for the Management of Floating Exchange payments imbalances by providing assistance over Rates” and new method of SDR valuation based on longer periods and in larger amounts. basket of 16 currencies. September 17 September 13 IMF decides to unify and simplify, as of January 1, IMF sets up Extended Fund Facility (EFF) to give 1981, currency baskets determining value and interest medium-term assistance to members with balance rate on SDR. Unified basket to be composed of cur- of payments problems resulting from structural rencies of five members with largest exports of goods economic changes. and services during 1975–79: U.S. dollar, deutsche October 3 mark, French franc, Japanese yen, and pound sterling. Interim Committee holds inaugural meeting follow- December 1 September 2001 ing its establishment on October 2. IMF announces that 128 members have consented to 28 quota increases under Seventh General Review, meet- ©International Monetary Fund. Not for Redistribution ing the minimum participation requirement for quota December 2 increase, under which aggregate quotas would be IMF Managing Director de Larosière and World Bank SUPPLEMENT raised to SDR 60 billion. President A.W. Clausen express broad support for the debt initiative proposed by U.S. Treasury Secretary 1981 James A. Baker. The initiative calls for comprehensive January 1 IMF begins to use simplified basket of five currencies to determine daily valuation of SDR. March 13 IMF decides to institute policy of enlarged access to its resources following full commitment of resources from Supplementary Financing Facility and until Eighth General Review of Quotas takes effect. May 7 IMF Managing Director Jacques de Larosière and Governor of Saudi Arabian Monetary Agency H.E. Sheikh Abdul Aziz Al-Quraishi sign loan agreement allowing the IMF to borrow up to SDR 8 billion to finance its policy of enlarged access, which thus becomes operative. On May 7, 1981, May 21 adjustment measures by debtors, increased and more Governor of the IMF extends financing to members encountering bal- effective structural lending by multilateral develop- Saudi Arabian ance of payments difficulties produced by excesses in ment banks, and expanded lending by commercial Monetary Agency, banks. H.E. Sheikh Abdul the cost of cereal imports. Assistance is integrated into Aziz Al-Quraishi the IMF’s Compensatory Financing Facility. (left), and IMF 1986 Managing Director Jacques de Larosière 1982 March 27 signed a loan agree- August 13 IMF establishes Structural Adjustment Facility to pro- ment permitting the vide balance of payments assistance on concessional IMF to borrow up to Mexico encounters serious problems servicing its for- SDR 8 billion to eign debt, marking onset of debt crisis. In following terms to low-income developing countries. finance its policy of months, IMF supports major adjustment programs in enlarged access. Mexico and several other countries facing severe debt- 1987 servicing difficulties. February 22 Finance ministers of six major nations meet; IMF 1983 Managing Director de Larosière participates. Ministers February–March agree, in Louvre Accord, to intensify policy coordina- Interim Committee agrees to increase IMF quotas tion and to cooperate closely to foster stability of under Eighth General Review. IMF Board of exchange rates “around current levels.” Governors adopts resolution on quota increase. December 29 November 30 IMF establishes Enhanced Structural Adjustment Increases in quotas under Eighth General Review take Facility (ESAF) to provide resources to low-income effect. members undertaking strong three-year macroeco- nomic and structural programs to improve their bal- December 30 ance of payments and foster growth. Ten participants in the GAB concur on plans to revise and enlarge the GAB. 1988 1985 August 23 Executive Board establishes Compensatory and October 6–7 Contingency Financing Facility to compensate mem- Interim Committee agrees that about SDR 2.7 billion bers with shortfalls in export earnings because of cir- in Trust Fund reflows to become available during cumstances beyond their control and to help maintain 1985–91 will be used to provide concessional lending adjustment programs in the face of external shocks. to low-income members. September 2001 29

©International Monetary Fund. Not for Redistribution September 25–26 technical assistance, pending its application for full SUPPLEMENT Interim Committee endorses intensified collaborative membership. approach to arrears problem. 1992 1989 April–May May 23 Executive Board approves membership of countries of Executive Board strengthens the strategy for dealing the former Soviet Union. with developing country debt problem, based in part August 5 on proposals by U.S. Treasury Secretary Nicholas F. IMF approves SDR 719 million Stand-By Brady. Countries with strong adjustment programs Arrangement for Russia. will gain access to IMF resources for debt or debt- November 11 service reduction. Executive Board adopts Third Amendment of Articles of Agreement. This provides for the suspension of a 1990 member’s voting rights, by a 70 percent majority, if May 7–8 the member has been declared ineligible to use the Interim Committee agrees to 50 percent quota IMF’s general resources and persists in its failure to increase. Committee recommends Third Amendment fulfill its obligations under the Articles. Quota to Articles of Agreement, providing for suspension of increases under Ninth General Review of Quotas voting and other membership rights for members that take effect. do not fulfill financial obligations to IMF. Committee also approves a “rights-accumulation” program that 1993 permits members with protracted arrears to establish April 16 Executive Board approves creation of Systemic Transformation Facility to assist countries facing bal- ance of payments difficulties arising from the trans- formation from a planned to a market economy. It is to be in place through 1994.

1994 February 23 Executive Board initiates operations under renewed and enlarged ESAF. March–May IMF approves arrangements for 13 countries of the CFA franc zone, following January realignment of CFA franc. June 6 Soft drink vendors IMF announces creation of three Deputy Managing near Red Square in a track record on policies and payments performance Director posts. Moscow. The IMF and to accumulate rights to future drawings. approved a Stand- October 2 By Arrangement for June 28 Interim Committee adopts the Madrid Declaration, Russia in August Executive Board proposes increasing total IMF quotas 1992 following the calling on industrial countries to sustain growth, from SDR 90.1 billion to SDR 135.2 billion under dissolution of the reduce unemployment, and prevent a resurgence of Soviet Union. Ninth General Review of Quotas. inflation; developing countries to extend growth; and transition economies to pursue bold stabilization and November reform efforts. Executive Board approves temporary expansion of IMF facilities to support countries affected by Middle 1995 East crisis. February 1 Executive Board approves a Stand-By Arrangement of 1991 SDR 12.1 billion for Mexico, the largest financial com- October 5 September 2001 mitment by the IMF up to this time. U.S.S.R. signs agreement with IMF providing for 30

©International Monetary Fund. Not for Redistribution 1996 December 2 IMF activates New Arrangements to Borrow for the SUPPLEMENT March 26 first time to help finance a Stand-By Arrangement for Executive Board approves an SDR 6.9 billion EFF Brazil. Arrangement for Russia, the largest EFF in IMF history. April 16 IMF establishes voluntary Special Data Dissemination Standard for member countries having, or seeking, access to international capital markets. A General Data Dissemination System will be implemented later. September Interim and Development Committees endorse joint Initiative for Heavily Indebted Poor Countries (HIPC Initiative).

1997 January 27 Executive Board approves New Arrangements to Borrow (NAB) as the first and principal recourse in the event of a need to provide supplementary 1999 Bolivian farmers resources to IMF. January 1 harvest potatoes outside La Paz. April 25 Eleven European member countries adopt a new com- Bolivia and Uganda Executive Board approves issuance of Public mon currency, the euro. The European Central Bank, are the first two which manages monetary policy for the euro area, is countries to reach Information Notices following conclusion of their decision points members’ Article IV consultations with the IMF, at granted observer status in the IMF. under the HIPC the request of the member, to make the IMF’s views January 22 Initiative. known to the public. Quota increases under the Eleventh General Review September 20 take effect, raising total quotas to SDR 212 billion. Executive Board reaches agreement on proposal to April 23 amend Articles of Agreement that will allow all Executive Board expands the SRF to provide for members to receive an equitable share of cumulative Contingent Credit Lines for members that have strong SDR allocations. economic policies but that might be affected by finan- December 4 cial contagion from other countries. Executive Board approves a Stand-By Arrangement of September 30 SDR 15.5 billion for Korea, the largest financial com- Board of Governors approves a proposal to transform mitment in IMF history. the Interim Committee into the International December 17 Monetary and Financial Committee. The change is In the wake of the financial crisis in Asia, the IMF accompanied by an explicit provision for preparatory establishes the Supplemental Reserve Facility (SRF) to meetings of representatives of the committee. The help members cope with sudden and disruptive loss of IMF Executive Board adopts a resolution to conduct, market confidence. The new facility is activated the next as a onetime, exceptional operation, off-market sales day to support the Stand-By Arrangement for Korea. of up to 14 million ounces of IMF gold as part of a package to allow the IMF to finance its share of the 1998 enhanced HIPC Initiative. April 8 November 9 Uganda becomes first IMF member to receive debt Managing Director Michel Camdessus announces he relief (approximately $350 million in net present value will resign in early 2000 after 13 years at the helm of terms) under the HIPC Initiative, to which IMF is to the IMF. contribute about $160 million. November 22 July 20 The ESAF is transformed into the Poverty Reduction IMF activates GAB for first time in 20 years, and first and Growth Facility (PRGF); its objectives are to fos- time for a nonparticipant, to finance SDR 6.3 billion ter durable growth, thereby raising living standards September 2001 augmentation of EFF Arrangement for Russia. and reducing poverty. 31 ©International Monetary Fund. Not for Redistribution thirds reduction, on average, of these countries’ SUPPLEMENT foreign debt. February 2 IMF approves increase in China’s quota to SDR 6,369.2 million from SDR 4,687.2 million to reflect China’s position in the world economy follow- ing its resumption of sovereignty over Hong Kong. March 1 IMF announces it will establish the International Ian S. McDonald Capital Markets Department to enhance its surveil- Editor-in-Chief lance, crisis prevention, Sara Kane Deputy Editor and crisis management Sheila Meehan activities. Senior Editor Horst Köhler is the IMF’s eighth Managing Director. Elisa Diehl March 7 Assistant Editor IMF Executive Board Mary Myers December 10 reviews the conditions Assistant Editor Uganda becomes first country to receive assistance Lijun Li attached to the use of under the IMF’s PRGF. Editorial Assistant IMF resources (condi- Maureen Burke Administrative/Editorial Assistant tionality) and agrees to 2000 Philip Torsani move toward a more Art Editor/Graphic Artist February streamlined and focused Jack Federici Anne O. Krueger Graphic Artist The IMF eliminates its Buffer Stock Financing Facility approach. and the contingency element of the Compensatory March and Contingency Financing Facility in order to The IMF Survey (ISSN 0047- IMF Executive Board 083X) is published in English, streamline and simplify its facilities. French,and Spanish by the IMF adopts strengthened 23 times a year, plus an annual March 23 framework of measures Supplement on the IMF and an annual index. Opinions and IMF Executive Board selects Horst Köhler, from to safeguard the use of materials in the IMF Survey do Germany, to be the IMF’s eighth Managing Director. financial resources made not necessarily reflect official views of the IMF. Any maps March–April available to IMF member used are for the convenience of countries. readers, based on National Executive Board initiates broader review of IMF Geographic’s Atlas of the World, financing facilities, agrees to eliminate Currency May 8 Sixth Edition; the denomina- tions used and the boundaries Stabilization Funds and Debt- and Debt-Service- IMF First Deputy Timothy Geithner shown do not imply any judg- Reduction Operations. ment by the IMF on the legal Managing Director status of any territory or any April 10 Stanley Fischer endorsement or acceptance of such boundaries. Material Executive Board agrees to establish an independent announces his intention from the IMF Survey may be to resign his post later in reprinted,with due credit given. evaluation office to assess the IMF’s operations and Address editorial correspon- policies. the year. dence to Current Publications Division, Room IS7-1100, May 22 June 7 IMF, Washington, DC 20431 Köhler announces U.S.A. Tel.: (202) 623-8585; IMF’s General Data Dissemination System enters or e-mail any comments to operational phase. appointments of Anne O. [email protected]. The IMF Krueger as First Deputy Survey is mailed first class in August 1 Canada,Mexico,and the United Managing Director, Executive Board restores Sudan’s voting rights, which States, and by airspeed else- Timothy Geithner as Gerd Häusler where. Private firms and indi- had been suspended in August 1993. viduals are charged $79.00 Director of Policy annually. Apply for subscrip- December 20 tions to Publication Services, Development and Review Box X2001, IMF, Washington, Federal Republic of Yugoslavia becomes the 183rd Department, Gerd DC 20431 U.S.A. Tel.: (202) member of the IMF. 623-7430; fax: (202) 623-7201; Häusler as Director of the e-mail: [email protected]. International Capital 2001 Markets Department, and January 8 Kenneth Rogoff as IMF Managing Director Horst Köhler and World Director of the Research Bank President James Wolfensohn announce that Department. September 2001 22 countries, 18 in Africa, qualify for debt relief under 32 the HIPC Initiative. This relief will represent a two- Kenneth S. Rogoff

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