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Letter of Transmittal to the Board of Governors
July 31, 2015
Dear Mr. Chairman:
I have the honor to present to the Board of Governors the Annual Report of the Executive Board for the financial year ended April 30, 2015, in accordance with Article XII, Section 7(a) of the Articles of Agreement of the International Monetary Fund and Section 10 of the IMF’s By-Laws. In accordance with Section 20 of the By-Laws, the administrative and capital budgets of the IMF approved by the Executive Board for the financial year ending April 30, 2016, are presented in Chapter 3. The audited financial statements for the year ended April 30, 2015, of the General Department, the SDR Department, and the accounts administered by the IMF, together with reports of the external audit firm thereon, are presented in Appendix VI, which appears on the CD-ROM version of the Report, as well as at www.imf.org/external/pubs/ft/ar/2015/eng. The external audit and financial reporting processes were overseen by the External Audit Committee, comprising Mr. Ramos (Chair), Mr. Loeto, and Ms. Barth, as required under Section 20(c) of the Fund’s By-Laws.
Yours very truly,
Managing Director and Chairman of the Executive Board
Commemorating IMF’s 70th Anniversary
During 2014 the IMF marked the 70th anniversary of its founding at the Bretton Woods Conference. The institution looked back during the year, but the focus was also forward looking: How can the Fund best support the closely interconnected global economy of the 21st century? And how will it adapt to change going forward?
At the time of the IMF’s founding in 1944, the world faced extraordinarily difficult choices. Depression had produced a world war that was still months away from ending. The challenges of rebuilding a new international order were daunting.
Over the succeeding decades, the IMF helped rebuild Europe. It assisted new nations when colonial empires retreated, and as the Soviet Union collapsed. The Fund helped Latin America and Asia to navigate crises, and worked closely with the new emerging market economies that came into their own with the new millennium. Since 2008, the IMF has worked closely with all its members to overcome the most recent global financial crisis.
During the year the IMF devoted the quarterly publication Finance & Development to the Bretton Woods anniversary in its September 2014 issue titled “Past Forward: The Future of Global Economics.” It also published a booklet on the anniversary by former IMF historian James M. Boughton titled The IMF and the Force of History: Events that Have Shaped the Global Institution.
Three events during the year highlighted the milestones of the past and the challenges of the present and future. The first was a July 2014 in-house celebration of the founding for members of the Executive Board, IMF staff, and retirees. The second was an Executive Board Retreat in September where Directors had an opportunity to discuss their views on “The Battle for Bretton Woods.”
The third event was Managing Director Christine Lagarde’s keynote speech to the 2014 Annual Meetings in October on “The IMF at 70: Making the Right Choices—Yesterday, Today, and Tomorrow.” In the speech, Ms. Lagarde used the anniversary to look ahead to the new challenges facing the IMF:
Seventy years after Bretton Woods, the international community stands at another fork in the road. The tried-and-true modes of cooperation seem to be fraying around the edges. The sustainability of the global economic engine itself is increasingly being questioned.
Can it really deliver the jobs, the incomes, the better living standards that people aspire to?
There are three key collective choices to be made:
First, how do we achieve the growth and jobs needed to advance prosperity and ensure social harmony? I would call this the choice between acceleration and stagnation.
Second, how do we make this interconnected world a more inclusive, safer place for all of us to thrive? This is the choice between stability and fragility.
Third, how do we strengthen cooperation and multilateralism, instead of isolationism and insularity? This is the choice between solidarity and seclusion.