On Legal Analysis Of The Developing Trend Of Imf In The Post-Subprime Times

As the remains of the Bretton Woods System, IMF still plays a fundamental role inmaintaining a stable international monetary system. However, the poor performanceof IMF in the recent crisis rescue has discouraged the confidence of internationalsociety. Furthermore, the breaking out of the subprime financial crisis has exposedits institutional dilemma. In order to fulfill the mission endowed by the new era,IMF is faced up with an institutional reform. In the post-subprime times, where IMFis going to becomes the focus of the international society.This thesis is titled with “On Legal Analysis of the Developing Trend of IMF in thePost-subprime Times”, focusing on voting power, drawing conditionality andexchange rate surveillance. This dissertation is divided into five chapters.The first chapter is about the evolution and dilemma of IMF. The first part brieflyintroduces the birth and evolution of IMF. The Bretton Woods system establishedafter World War II cannot get rid of “Triffin Dilemma”, and collapsed in the1970s.As the remains of the Bretton Woods System, IMF maintains the limited orderdifficultly in the Jamaica system. The second part by analyzing the legal reasons ofthe subprime crisis, proclaims that the present international financial supervisionsystem is not suitable for the current international economic situation. The subprimecrisis reveals the institutional defects of IMF. In order to get over the dilemma, IMF is in need of immediate reformation. Voting power、drawing conditionality andexchange rate surveillance should be paid attention especially.The second chapter is the legal analysis on the developing trend of voting power inIMF. The first part summarily presents the basic rules of voting power in IMF.IMF is characterized by the weighted voting power system based on the quota. Thesecond part points out the legal drawbacks in this voting power system. It is thequota-based voting power system that causes unfair voting power allocation betweendeveloped and developing countries. The third part states the possible reformproposals of the IMF voting system. Only reallocate the quota can the voting powersystem accurately reflect strength of different countries.The third chapter is the legal analysis on the developing trend of drawingconditionality in IMF. Article V of the Articles of Agreement is the legal base ofdrawing conditionality. The first part generalizes the legal frame of drawingconditionality in IMF. The second part sets forth the legal defects in this drawingconditionality system. One weakness that is worth pointing out is the rigidconditions imposed on the member countries, which leads to unsuitability between theconditions and the present situation in the related country. The third part elaboratesthe possible reform plans of the IMF drawing conditionality system. Of crucialimportance is to pay special attention to different financial circumstances in differentcountries when iron out a specific policy reform plan.The fourth chapter is the legal analysis on the developing trend of exchange ratesurveillance. The first part clarifies the legal skeleton of exchange rate surveillancein IMF. Article IV of the Articles of Agreement and The2007Decision on BilateralSurveillance over Member’s Policies constitute legal sources of exchange ratesurveillance. The second part expounds the legal flaws in this surveillance system.Take the Article IV of the Articles of Agreement for example, this article is mainly aprinciple, lacking in specific value in the practical operation. The third part putsforward the possible reform schemes of the IMF exchange rate surveillance system,one of which is to establish a surveillance institution to restrict the power of the boardof governors. The fifth chapter is the summary of other various ideas about the developing trendof IMF. This chapter is further divided into three parts. The first part illustratesthree proposals of reforming the international monetary system. The second partintroduces the viewpoints of abolishing or retaining IMF. The third part putsforward three plans in terms of preventing and curing financial crisis.