THE PROGRAM OF A POSSIBLE REFORM OF THE INTERNATIONAL MONETARY FUND (IMF)

In the lost decade of the 20(th) century and at the beginning of the 21(st) century, global economy has been exposed to the increased instabilities and global financial disequilibria, which outgrew in some of the countries in the region in global financial and economic crises. However, because of the huge misfortunes of the IMF in solving the financial crises and in fostering the development of the developing countries, there is great need for a radical reform of the IMF as well as the international financial system. Our goal in this paper is to highlight the role and significance of the IMF. It is possible to define the process of the reform of this institution and because of that we would like to show an agenda for the reform of the IMF by specifying the main directives of the reform draft. Therefore we shall divide this paper in two parts. In the first part of the paper, we shall discuss the importance of a possible reform of the Fund, which helps IMF to accomplish its goal and additionally suggest the directives for possible reform of the IMF. The second part of the paper shall discuss individually each directive of possible reform of the IMF which, in humble opinion of many economists, needs to reform its methodology of work and adopt new mechanisms, which should help manage the international monetary system effectively and later, provide a strong base for its (global financial system) development in the future.