International Political Economy Essay Example | Topics and Well Written Essays - 1250 words

International Political Economy - Essay Example It also mentions some of the conditions that countries need to fulfill in order to receive any assistance from the organization. Composition of the IMF Executive Board, Voting powers The member states have the liberty to participate in the IMF directly. The executive board comprises of 24 members out of which five executive directors can be elected by the member states having the maximum quota. The remaining nineteen executive directors are elected by the remaining number of members. The powers that each country enjoys are predominantly dependant on the proportional scale of their population and the economic position they hold in the entire world. The general owners of the organization are represented by the board of executive directors who are responsible for taking the major decisions and responsibilities of the organization. However, all of the names of the member countries are represented in the economic scale. This is more resembling with the theory of structuralism which was di scovered and presented by Marx. In the view of structuralism theory presented by Marx, it disputes the instrumentalist theory which considers the state as being the direct servant of the ruling class or the capitalists. Structuralism theory states consider the capitalist of production as the state being under the control of the capitalist class having superior powers. As per the members of the executive board, it is seen that members having superior positions in the IMF are actually the members who belong to the developed nations of the world which abides by the structuralism theory stated by Marx. The highest decision making authority of IMF rests with the Board of Governors. All powers of the IMF are vested in the Board of Governors. The Board of Governors comprises of a single governor as well as an alternate governor for each of the member countries. Members’ states are responsible for appointing the governor and generally the finance minister or the governer of the Centr al Bank is nominated for the position. The Board of Governors may delegate to the Executive Board all except certain reserved powers. The Board of Governors generally conducts a meeting in every year (IMF, â€Å"IMF Members' Quotas and Voting Power, and IMF Board of Governors†). The regular or day to day running of business of the organization is done by the Executive Board. Composed of 24 Directors, either elected or appointed by the member nations or also by collective groups of countries, it is also elected by the Managing Director, or the Chairman of the board. Several meetings are conducted by the Board in a single week. The works are generally conducted by the papers which are prepared or provided by the management and staffs in IMF (IMF, â€Å"IMF Executive Directors and Voting Power†). Design and operations of IMF In the 1980s a tremendous financial crisis had gripped the Latin American economy when high and bloated public debts and improper and loose monetary policies had led to very inflation rates in the economy. However, some of the conditions set by the IMF demonstrate the fact that it imposes certain restrictions or preconditions before providing aid to nations. For example, in this situation, the International Monetary Fund gad imposed financial austerity or balanced budgets as well as tighter monetary policies. The IMF demanded from the nation that it should impose the same monetary policies