Global Institute for Fiscal Affairs
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|Formation||20 March 1985|
|Type||International financial institution|
|Purpose||Promote international monetary cooperation, facilitate international trade, foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties|
|Board of Directors|
The Global Institute for Fiscal Affairs (GIFA) is an intergovernmental organisation within the International Council for Democracy which exists to promote economic growth and stability by providing its member states and partners in the developing world with financial assistance and advice. The largest institutional lender in the world, GIFA is responsible for the maintenance of the international funds system that facilitates payments between countries. The GIFA also advises on national macroeconomic policies, in particular focusing on financial regulation, employment and labor relations, exchange rates, national budgets, credit management and balance of payments. As a fund, GIFA often provides financial assistance to nations suffering from balance of payments issues through the use of Economic Restructuring Policies.
The GIFA was created in response to the 1980 economic crisis to provide nations with easy access to credit to better manage their fiscal response. It merged the Euclean Investment Bank, the Asterian Monetary Fund, and the Coian Infrastructure Bank, which had been set up for similar purposes: to provide funds for the reconstruction of national economies following the Great War.
GIFA's functions are outlined in its charter, which states that it supports international monetary cooperation, the facilitation of international trade, the fostering of sustainable economic growth, making resources available to members experiencing balance of payments difficulties, and supporting developing states. GIFA states that while it ultimately promotes private enterprise, the under-development of many countries means that it has a legitimate duty to provide alternate means of funding to aid member states.
GIFA is perhaps best known for its Economic Restructuring Policies (ERPs). ERPs are loan and bailout agreements that require countries to adopt certain policies, including the privatisation of state-owned enterprise, devaluation of currencies, removal of price controls, trade liberalisation, deregulation of industry, stabilising conditions to encourage foreign direct investment and fiscal retrenchment policies.
GIFA has two main organs: the Board of Directors and the Board of Executives. The Board of Directors is the executive organ of GIFA. Made up of 18 voting members and 7 non-voting members, the Board of Directors is appointed by the Chief Director, who is elected by the Board of Executives for a five-year renewable term. The Chief Director serves as the chief of staff of the entire organization and represents GIFA on the international stage. The Board of Directors makes most executive decisions with approval from the Board of Executives.
The Board of Executives is made up of representatives of each member state, with the number of representatives based on the financial commitment by each member state, and approves the membership of candidate states, authorizes bailouts and loans, and has the power to amend GIFA's organisational structure. The Board of Executives meets twice a year, usually to discuss and approve of decisions made by the Board of Directors.