International Monetary Fund
Published Date:
September 1951
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Membership and Organization

Pakistan became a member of the Fund on July 11, 1950, and Ceylon on August 29, 1950, Pakistan with a quota of $100 million, Ceylon with a quota of $15 million. The aggregate of Fund quotas was thus increased to $8,036.5 million and the total number of members to 49. The Fund was notified by the Government of Liberia on August 23, 1950, and by the Government of Haiti on September 1, 1950, that it was not then possible for them to take up membership in the Fund. Their period for acceptance expired on September 30, 1950.

In accordance with the Articles of Agreement, which require that “the Fund shall at intervals of five years review, and if it deems it appropriate propose an adjustment of, the quotas of members,” the first quinquennial review of quotas was undertaken in December 1950. After consideration of the matter the Executive Directors decided that, under the current international circumstances, it was difficult to reach a conclusion on the question at that time and therefore looked forward to discussing the question further at as early a date as might be practicable.

The members of the Fund, their quotas, voting powers, Governors, and Alternate Governors are shown in Appendix II. Changes in the membership of the Board of Governors during the year are shown in Appendix III.

The Executive Directors of the Fund and their voting power as of April 30, 1951, are shown in Appendix IV. Changes in membership of the Executive Board during the year are shown in Appendix V.

On May 5, 1951, Mr. Camille Gutt completed his five-year term of service as Managing Director and Chairman of the Executive Board, having declined for personal reasons the unanimous offer made by the Executive Directors to extend his contract for a period of three years until the age of seventy. In submitting their Annual Report to the Board of Governors, the Executive Directors, as on the occasion of his retirement, record their recognition of Mr. Gutt’s distinguished participation in the establishment of the Fund as Vice Chairman of the Bretton Woods Conference and as Governor at the Inaugural Meeting at Savannah, and their appreciation of his wise conduct of the affairs of the Fund during its first five years, of his clear-sighted statesmanship in the field of international finance, and of the invaluable service he rendered to the Fund and its members.

On April 10, 1951, the Executive Board appointed Mr. Ivar Rooth, formerly Governor of the Sveriges Riksbank, to succeed Mr. Gutt as Managing Director and Chairman of the Executive Board. Mr. Rooth had not assumed his duties at the time this Report was written but is expected to take office early in August 1951.

Relations with Members

In the past year staff representatives visited twenty-nine member countries to confer with members on their exchange and monetary situation, or to exchange views on methods and techniques, or to furnish technical assistance. The major consultations with members are referred to elsewhere in this Report in connection with the exchange measures taken by certain members. These consultations between a member’s monetary authorities and a Fund mission with broad terms of reference are a normal method of collaboration in the formulation of policies. Through such consultations the Fund is able to obtain a direct, specific understanding of a situation and so be in a position to help in an equally specific sense. It is envisaged that the Fund will be increasingly conferring with its members in the coming year, both in connection with the availability of its resources in giving confidence to members in undertaking practical programs of action and with respect to the relaxation or removal of restrictions.

In the broad fields of technical cooperation the availability in the Fund of experts on national economies and economic techniques is appreciated by many members and there have been numerous requests for assistance. The Fund for its part has readily placed its technical resources at the service of its members since its inception, and believes that the usefulness to its members of these technical services will progressively increase. In developing and recruiting the staff the Fund has always borne the importance of technical cooperation in mind and every effort will be made to meet expanding requirements in this area of its activities.

Members of the staff on technical assignments in member countries in the past year have prepared reports and recommendations on a wide range of financial and exchange problems. Supported by preparatory studies in the Fund based on the comprehensive documentation which has been gathered on each member’s economy and finances, these surveys have covered the process of inflation in particular countries, the monetary and financial aspects of development programs, credit and fiscal policies, policy and operational changes in central and commercial banking, exchange system reforms, reorganization of foreign exchange controls and establishment of foreign exchange budgets. The countries to which such technical missions have been sent include Colombia, Chile, Greece, Iceland, Nicaragua, Paraguay, and the Philippines. Members of the staff have also visited many other countries on projects which, though smaller in range, have been valuable in improving methods and techniques.

Relations with Other International Organizations

The Fund and the International Bank for Reconstruction and Development continue to work together on their common problems and to make use of the opportunities for combined arrangements which are provided by their related areas of activity and responsibility and their joint headquarters. The Fund is also in close relationship with the Contracting Parties to the General Agreement on Tariffs and Trade (GATT). Consultations under the GATT have been reported in an earlier chapter.

The Fund has also cooperated actively with other international and regional organizations. Its representatives have participated in meetings of the United Nations General Assembly, the Economic and Social Council, the Economic Commissions for Asia and the Far East, for Europe and for Latin America, the Heads of Specialized Agencies and of the UN meeting as the Administrative Committee on Coordination, and a number of subordinate and technical commissions of these bodies. It has also been represented at the Tenth Session of the Food and Agriculture Organization and the Annual General Meeting of the Bank for International Settlements, and through its technical representative in Europe contact has been maintained with the Organization for European Economic Cooperation.

The General Assembly of the United Nations in November 1950 agreed that, if the Security Council failed to act on matters involving the maintenance of peace and security, the Assembly had the power to do so. The Economic and Social Council at its February 1951 session recommended that the UN Secretariat and the various specialized agencies having agreements with the United Nations explore what new arrangements might be called for as a result of this resolution. In response to this, discussions are currently proceeding with the United Nations.

The Fund assigned two members of its staff to assist the United Nations Commissioner in Libya on currency, banking and financial problems. A progress report was submitted by them late in 1950, designed to direct the attention of the United Nations and of the governments immediately concerned to the whole range of Libya’s financial deficiencies and to the interrelationship between Libya’s currency problem and its other financial problems. After a series of consultations ending with a meeting of experts representing the United Kingdom, France, Italy, Egypt, and the United States, the Fund staff members were able to make recommendations to the UN Commissioner on the basis of an integrated approach to Libya’s financial problems and with the assurance that they were for the most part acceptable to these governments.

The Fund has continued to prepare studies in the financial and monetary field for the use of several agencies of the United Nations, including the regional economic commissions, and to assign members of the staff to participate in meetings, joint working parties, missions, and study groups.

Training Program

The initiation of the Fund’s general and specialized training programs was reported last year. There is a world-wide shortage of competent technicians in the monetary and economic field and the shortage is particularly acute in the countries where the need for coordinated technical assistance is most keenly felt. The Fund’s training programs provide for a six months’ specialized course in balance of payments techniques designed to improve the technical competence of officials of member governments in the preparation, analysis, and presentation of balance of payments data; and a twelve months’ general course designed to give qualified young nationals of member countries a broad knowledge of the policies, functions, and operations of the Fund as well as technical training in the interpretation of monetary and economic data. The establishment of the programs was announced in May 1950, and a number of members were invited to submit candidates. Five candidates, from India, Iran, Nicaragua, Paraguay, and the Philippines, were selected for the first course of the Balance of Payments Program, which began in September 1950, and five candidates, from Brazil, Pakistan, Honduras, Thailand, and Egypt, for the second, which began in March 1951. For the first course of the General Training Program, which began in January 1951, candidates were selected from Bolivia, Chile, Guatemala, Honduras, India, Iran, the Philippines, El Salvador, Syria, and Thailand.

Although it is too early to measure the success of these programs, the experience so far gained justifies the expectation that in the near future, and increasingly in the long run, member countries will benefit from the additional experience that some of their nationals are thus able to gain, while the Fund for its part will benefit from their understanding of its functions and their ability to apply its techniques.


In addition to the Fifth Annual Report and the Second Annual Report on Exchange Restrictions to the Members and Governors, there was published in the year under review the first issue of Direction of International Trade, which is prepared jointly by the Fund and the International Bank for Reconstruction and Development, and printed and distributed by the United Nations. It is issued monthly and reports in terms of U.S. dollars detailed figures of the trade of ninety-two countries. The second Balance of Payments Yearbook was published in July 1950 and the third was in the press as this Report was being written. The first volume of Staff Papers was completed with the issue of the second and third numbers in September 1950 and April 1951. The monthly statistical bulletin, International Financial Statistics, and the weekly review of current financial news, International Financial News Survey, continue to be widely distributed.


At the end of the fiscal year, the total number of staff, including staff members on leave without pay and military leave, was 456, composed of nationals of 36 countries. Of this number 47 held temporary appointments. During the year 98 appointments were made of nationals of 22 countries, the net increase in staff for the year being 15.

An administrative budget for the period May 1, 1951, to April 30, 1952, as approved by the Executive Directors, is presented in Appendix VI, to which there is attached a tabulation setting forth a comparison with the budget and actual expenditures for the fiscal year 1951. A comparative statement of the Fund’s income is presented in Appendix VI.

Audited financial statements of the Fund’s Retirement Fund are presented in Appendix VII. The Retirement Plan was amended in June 1950, to reduce the vesting period from five years to three years, and in October 1950, to provide for the inclusion of Executive Directors and Alternate Executive Directors in the Plan.

Upon the request of the Executive Board the Governments of Belgium, Brazil, and India, respectively, nominated the following members of the Audit Committee: Mr. Charles Vercruysse, Inspector General, National Bank of Belgium, and Chief of the Accounting Department, Mr. Joao Candido Andrade Dantas, Deputy Manager of the Exchange Department, Bank of Brazil, and Mr. G. S. Rau, Director of Audits and Accounts, Office of the Comptroller and Auditor General of India. The report of the Committee is submitted separately. The Auditors’ Certificate, with the audited balance sheet as of April 30, 1951, and the audited statement of income and expenditure, with supporting schedules, are presented in Appendix VII.

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