Outline a criticism of the IMF

The IMF, or International Monetary Foundation, was established in 1945 as part of the Bretton Woods Economic system created after the end of the second world war to promote peace through economic stability and unity. The organisation is criticised for many reasons, one being that it is heavily dominated by the USA. As the biggest contributor to the IMF, the USA enjoys the largest quota, and thus the largest vote share at 17.68%. Decisions in the IMF require an 85% majority, and the USA's large vote share means that it effectively exercises veto power within the organisation. In addition to this the IMF is based in Washington DC, the USA's political capital. Many have argues that because of this the IMF has embodied too many American economic ideals, over focusing on privatisation and deregulation, and this can be seen to some extent in the failure of Structural Adjustment Programmes (SAPs) in alleviating poverty in the global South. The IMF has responded to criticism by adjusting vote shares in favour of developing nations, but so long as the USA continues to enjoy the greatest vote share and veto power, many will continue to criticise the IMF for allowing the USA to dominate.