Global Institute for Fiscal Affairs
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Official logo of GIFA
|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|
|xxx member states|
|Board of Directors|
The Global Institute for Fiscal Affairs (GIFA) is an intergovernmental organisation linked to the Community of Nations which exists to promote economic growth and stability through advising its members states and providing financial assistance, a task it also undertakes to developing countries. The largest public lender of funds in the world, the GIFA responsible for the creation and maintenance of the international monetary system, the system by which international payments among countries take place. The GIFA also advises on national macroeconomic policies, in particular focusing on financial regulatory policies, employment and labour market relations, exchange rates, national budgets, credit management and balance of payments. As a fund the 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 of the 1980 economic crisis to provide nations with easy access to credit to better manage their fiscal response to the crisis. In this it merged the Euclean Investment Bank, the Asterian Monetary Fund and Coian Infrastructure Bank which had been set up for similar purposes to provide funds for the reconstruction of national economies following the Great War.
The Global Institute for Fiscal Affairs outlines its functions its in founding charter, stating it supports the promotion of 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 the economic development of developing states. GIFA states that whilst its ultimately promotes private enterprise the under-development and restrictions on many countries means that it has developed means to provide alternate means of funding to aid member states.
GIFA is most known for its Economic Restructuring Policies (ERP's). ERP's are loan and bailout agreements that require countries to adopt certain policies to be eligible for loans, 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 is based around two main organs - the Board of Directors and Board of Executives. The Board of Executives is made up of representatives of each member states of GIFA with the number of representatives based on the financial commitment of member states and approves of the membership of candidate states, approves of bailouts and loans and has the power to amend or change the organisational structure of GIFA. The Board of Executives meets twice a year usually to discuss and approve of decisions made by the Board of Directors.
The Board of Directors is the main executive organ of GIFA. Made up of 18 voting members and 7 non-voting members, the Board of Directors is appointed by Chief Director who is elected by the Board of Executives for five year renewable terms. The Chief Director officially serves as the head of staff of the entire organisation representing GIFA on the international stage. The Board of Directors makes most executive decisions within GIFA with approval from the Board of Executives.