As pointed out in the World Investment Report, 2000, MNCs may restrict the access of particular affiliates to technology in order to minimize inter-affiliate competition. It is noted that MNCs are more likely to license older technologies from which they have already derived significant rents than newer technologies on which there are still relying for market leadership. Further, they may hold back the upgrading of the affiliate technology or invest insufficiently in host-country training and R&D in accordance with their global corporate strategies. Therefore, arguing that FDI inflows and economic liberalization automatically facilitates technology transfer is being extremely naïve. INTERNATIONAL MONETARY FUND (IMF) International Monetary Fund is the inter-governmental organization that oversees the global financial systems by following the macroeconomic policies of its member nations, in particular, those countries with an impact on exchange rate and the balance of payments. The IMF was conceived in July, 1944 during the United Nations Monetary and Financial Conference. Later, it was formally organized on December 27, 1945, when the first 29 countries signed its Articles of Agreement at the Conference of Bretton Woods. Its head quarters are in Washington DC, United States of America. The IMF is accountable to the governments of its member countries. The IMF’s resources are provided by its member countries, primarily through payment of quotas, which broadly reflect each country’s economic size. Activities of IMF The IMF is generally, responsible for promoting the stability of the international monetary and financial system-the system of international payments and exchange rates among national currencies that enables trade and financial transactions to take place between countries. The IMF works to promote global growth and economic stability-and thereby prevent economic crisis-by encouraging countries to adopt sound economic policy. Usually once a year, the IMF conducts in-depth appraisals of each member country’s economic situations and policies, and advises on desirable policy adjustments. In the event that member countries do experience crises, the IMF resources may be trapped to help finance balance of payments needs. In low-income countries, the IMF provides financial support through its concessional lending facilities-the Poverty Reduction and Growth Facility (PRGF) and the Exogenous Shock Facility (ESF)- and through debt relief under the Heavily Indebted Poor Countries(HIPC).
School of Distance Education Indian Economy Page 108 Special Drawing Rights (SDR) Special Drawing Right was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Today, the SDR has only limited use as a reserve asset, and its main function is to serve as the unit of account of the IMF and some other international organizations.