Publication

This paper reviews the current business model of the International Monetary Fund (IMF) and proposes changes to sustain its viability and improve its capacity to tackle future crises. Based on recent developments and on the demands of the IMF's prospective clients, it argues for an independent surveillance process, a redistribution of power and chairs on the board, establishment of an automatic insurance facility and a substantial increase in the capital base of the IMF. The paper concludes that under this framework, all IMF member countries would be covered by an IMF facility: developed countries by surveillance, solvent emerging markets by insurance, insolvent emerging markets by the standard IMF programs, and poorer countries by the poverty alleviation programs.