Source: The post is based on the article “Union Finance Minister attends the International Monetary and Financial Committee in Washington DC” published in PIB on 16th October 2022.
What is the News?
Union Minister for Finance & Corporate Affairs attended the Plenary Meeting of the International Monetary and Financial Committee(IMFC) at the International Monetary Fund Headquarters during the Annual Meetings 2022 in Washington DC.
What is the International Monetary and Financial Committee(IMFC)?
The IMF Board of Governors is advised by two ministerial committees, the International Monetary and Financial Committee (IMFC) and the Development Committee.
IMFC: It has 24 members drawn from the pool of 190 governors.Its structure mirrors that of the Executive Board and its 24 constituencies.As such, the IMFC represents all the member countries of the Fund.
– The IMFC meets twice a year, during the Spring and Annual Meetings.
– The Committee discusses matters of common concern affecting the global economy and also advises the IMF on the direction of its work.
– At the end of the Meetings, the Committee issues a joint communiqué summarizing its views. These communiqués provide guidance for the IMF’s work program during the six months leading up to the next Spring or Annual Meetings.
– There is no formal voting at the IMFC which operates by consensus.
Development Committee: It is a joint committee tasked with advising the Boards of Governors of the IMF and the World Bank on issues related to economic development in emerging and developing countries.
– The committee has 24 members (usually ministers of finance or development). It represents the full membership of the IMF and the World Bank and mainly serves as a forum for building intergovernmental consensus on critical development issues.