A suitable case for treatment? Understanding the ongoing debate about the IMF

The International Monetary Fund has been in the spotlight over recent years , particularly in the context of its involvement in the East Asian economie s following the 1997-98 crisis. Various reports on aspects of the internati onal financial system have made recommendations for reforming the IMF. Havi ng provided a brief historical and empirical background, this paper identif ies the underlying issues in the ongoing debate: does the world still need the IMF, should the Fund be an adjustment or lending institution, what shou ld be its relationship with private capital markets, should it be a crisis averter, crisis lender or crisis manager, does it have a long term lending role in developing countries and is there too much overlap with the World B ank, do Fund programmes work and what is the future for conditionality, sho uld the Fund's organisational structure be reformed, and how should the Fun d be financed? The paper distinguishes between areas of consensus and disse nt and briefly assesses the chances of reform.