- International Monetary Fund
- Published Date:
- January 1966
The Fund can decide whether or not to admit countries to membership. In considering applications, the Fund’s practice is to satisfy itself that the country is a state that conducts all of its international relations and that the obligations of the Articles will be performed. Membership in the Fund had grown to 103 states by the beginning of 1966. Among the non-members are the U.S.S.R. and countries of Eastern Europe, Switzerland, and certain small territories such as Liechtenstein, but this list is not complete. The Eastern European countries include two that are former members of the Fund: Czechoslovakia and Poland. Cuba and Indonesia are also ex-members.
Certain territories have a status that precludes membership in the Fund so long as that status remains unchanged. Under Article XX, Section 2(g):
By their signature of this Agreement, all governments accept it both on their own behalf and in respect of all their colonies, overseas territories, all territories under their protection, suzerainty, or authority and all territories in respect of which they exercise a mandate.
This means that a member state is responsible to the Fund for the observance of the obligations of the Articles in all of the territories listed. Nevertheless, these territories are not themselves members of the Fund and are not capable of becoming members while they remain in any of the categories mentioned in the provision. Conceivably, there could be practical difficulties if a territory had autonomy in the conduct of its domestic affairs and the obligations of the Articles were not being observed in the territory, but this would not change the legal position. The difficulties would normally be eliminated by tripartite consultation among the Fund, the member, and the territory for which it was responsible.