VI Membership, Orgnaization, and Administration
- International Monetary Fund
- Published Date:
- September 1952
Membership and Organization
Sweden became a member of the Fund on August 31, 1951, with a quota of $100 million, and Burma on January 3, 1952, with a quota of $15 million. The number of members was thus increased to 51.
By resolution of the Board of Governors, adopted on April 21, 1952, in a vote without meeting, a change in the quota of Honduras from $0.5 million to $2.5 million was approved. This change was accepted by Honduras on April 29, 1952.
With this change and the admission of Sweden and Burma, the aggregate of quotas was increased to $8,153.5 million.
The application of the Hashemite Kingdom of the Jordan for membership, which was made on June 6, 1950, was approved by the Board of Governors in a vote without meeting on April 21, 1952. Jordan has until September 30, 1952 to accept membership.1
The members of the Fund, their quotas, voting powers, Governors, and Alternate Governors are shown in Appendix V. Changes in the membership of the Board of Governors during the year are shown in Appendix VI.
Mr. Ivar Rooth assumed his duties as Managing Director and Chairman of the Executive Board on August 3, 1951. The Deputy Managing Director, Mr. A. N. Overby, resigned on January 24, 1952, when he was appointed Assistant Secretary of the U.S. Treasury.
Relations with Members
In addition to the formal consultations referred to in previous chapters, the Fund has maintained active and close relations with its members in the general field of technical assistance. This has involved work of three kinds: missions and technical visits, training programs, and publications and information.
Representatives of the staff visited 37 member countries during the past year for informal discussions or on technical assignments. These meetings are valuable in enabling the Fund to gain a closer understanding of a member’s situation and so to make its services and assistance available where they will be most helpful. In exchanging views with officials and in sharing information and experience of techniques, the members of the staff have received full and friendly cooperation. Such visits, renewed from time to time and complemented by visits of members’ officials to the Fund, make it possible to develop more effective relations between the Fund and its members, and are of service to all members in helping the Fund to take a comprehensive view of international needs as a whole.
Close working relations have been maintained with other international agencies concerned with technical assistance, both directly and through the UN Technical Assistance Board. Although the Fund is not a member of this Board, it has participated actively in its meetings, has contributed nonconfidential technical information on exchange matters, and has shared in the general interchange of information on missions and technical visits under the technical assistance programs of the various international agencies involved.
In summary, over the course of the twelve months covered by this Report, 36 members of the staff have been engaged at various times on missions and technical assignments. In the latter category, the subjects in relation to which the Fund’s technicians have furnished assistance include the drafting of new banking legislation, advising on an import certificate system, reviewing policies and practices bearing on exchange rates and exchange controls, and advising on the reorganization of the banking structure and fiscal system as related to exchange policy. In addition, the Fund has continued to lend its services in establishing machinery for the collection and interpretation of balance of payments and other statistical data. In some cases members of the staff have been lent to member governments and to other international organizations for extended periods of time to assist on specific projects.
The Fund’s two training programs are now in their second year. One course emphasizes the preparation, analysis, and presentation of balance of payments data. The other, of a more general character, deals broadly with international economics and the policies, purposes, and operations of the Fund. These programs include lectures and field work in cooperation with the International Bank and the United Nations as well as with U.S. Governmental agencies and central and commercial banking institutions. To date 41 trainees, from 30 member countries, have participated. All have returned, or are expected to return, to the service of their countries. Especially for countries whose economic development is not yet very far advanced, these programs, the details of which are under continuous review, offer useful opportunities for the training of technicians and as, in the course of time, more trainees gain a firsthand knowledge of the Fund, should also contribute to the development of more effective working relations between the Fund and its members.
In addition to the Sixth Annual Report of the Executive Directors, the Fund has issued during the year under review Volume III of its Balance of Payments Yearbook, and Volume II, Nos. 1 and 2, of Staff Papers. The circulation has expanded of the two monthly publications, International Financial Statistics and Direction of International Trade (the latter prepared jointly with the International Bank for Reconstruction and Development and printed and distributed by the United Nations) , and of the weekly International Financial News Survey.
Relations with Other International Organizations
The special relationship between the Fund and the International Bank for Reconstruction and Development affords opportunities for collaboration that continue to be of advantage to both institutions. The Fund has also a close relationship with the Contracting Parties to the General Agreement on Tariffs and Trade (GATT). The nature of the consultations under the GATT has been described in the Fund’s Third Annual Report on Exchange Restrictions.
The common interests that the Fund has with the Organization for European Economic Cooperation and the European Payments Union have made it desirable to cultivate closer contacts with these organizations. These relationships are being developed.
In accordance with its policy of active cooperation with other international organizations, the Fund has sought opportunities during the past year to extend its participation in their work. It has prepared a number of studies for the regional economic commissions of the United Nations and for the Economic and Social Council. Staff members have assisted at regional seminars and training centers organized by the United Nations, the Food and Agriculture Organization, and the International Bank. There has been consultation at Fund headquarters with an expert working group of the United Nations, and it has become an increasingly common practice for the Resident Technical Assistance Representatives being sent out by the Technical Assistance Board to confer with the Fund staff.
In the normal course of business, Fund representatives have attended 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 Food and Agriculture Organization, the World Health Organization, the International Labor Organization, and the Annual General Meeting of the Bank for International Settlements. Inter-agency coordination has been the subject of meetings of the Administrative Committee on Coordination in which the Fund regularly participates.
Privileges for Fund Communications
In Appendix XI of the Annual Report for 1950 there was set forth an interpretation by the Executive Directors, in accordance with Article XVIII of the Articles of Agreement, with respect to the treatment to be accorded by members under Article IX, Section 7, to the official communications of the Fund. The interpretation was submitted to the United States Federal Communications Commission in a proceeding instituted by the Fund and the International Bank for Reconstruction and Development against certain cable companies in the United States for the purpose of securing the same treatment in respect of rates for official communications as is accorded to member governments. On November 14, 1951, the Hearing Examiner of the Federal Communications Commission issued an Initial Decision which in effect recognized the obligation of the cable companies to accord the same rates to the official communications of the Bank and the Fund as are charged to other member governments of the Bank and the Fund. Final decision is still pending because exceptions have been filed by the parties.
At the end of the fiscal year, the total number of staff was 451, including nationals of 35 countries. Of this number, 15 held temporary appointments, 10 were on leave without pay, 16 were on military leave, and 1 was on loan. During the year, 71 appointments were made of nationals of 20 countries, the net decrease in staff for the year being 5. The Executive Board has approved the suggestion of the Managing Director to study the division of the Latin American, Middle Eastern, and Far Eastern Department into separate departments as soon as is practicable, and in general to study the allocation of geographical regions to the appropriate departments in the Fund, with a view to ensuring that each would be responsible for a manageable geographical area.
An administrative budget for the period May 1, 1952 to April 30, 1953, as approved by the Executive Directors, is presented in Appendix IX, to which there is attached a tabulation setting forth a comparison with the budget and actual expenditures for the fiscal year 1952. A comparative statement of the Fund’s income is presented in Appendix IX.
The Executive Board requested the Governments of Cuba, France, and Pakistan to nominate members of the Audit Committee. The following nominations were made and confirmed: Mr. Manuel de J. Fernandez Cepero, Certified Public Accountant, Professor of Accountancy at Havana University, and Auditor of the Banco Nacional de Cuba; Mr. Gilles de Wailly, Inspecteur des Finances, France; and Mr. Syed-Uz-Zaman, Chartered Accountant and Member of the Income Tax Tribunal, Pakistan. The report of the Committee is submitted separately. The Auditors’ Certificate, together with the audited balance sheet as of April 30, 1952, the audited statement of income and expenditure, with supporting schedules, and audited financial statements of the Fund’s Retirement Fund are presented in Appendix X. A comment has been prepared by the Executive Directors for the purpose of assisting comparison between the balance sheet presented by the Audit Committee this year with balance sheets prepared by earlier Audit Committees; this comment appears in Appendix XI.