tripled, and most of the world has experienced major improvements in literacy and life expectancy. among the biggest gainers have been the developing nations, home to half of the world ’ s population. many of them have been quick to take advantage of the opportunities afforded by the global economy, especially during the last two decades. these countries – whose ranks include brazil, chile, china, india, korea, and mexico – were able to double their share in world trade, raise per capita incomes, and lift millions out of poverty. their experience demonstrates that integration into the global economy can bring major benefits. the imf ’ s evolution the world has witnessed many changes and developments – in technology, politics, culture, as well as economics – over the years, and the imf has adapted itself accordingly. at the time of imf ’ s establishment, our economic policy advice focused mainly on helping members to shape sound macroeconomic and financial policies, within the disciplines of the bretton woods system of fixed exchange rates. the breakdown of that system in the early 1970s, and the resultant second amendment of the imf ’ s articles of agreement, led to a re - orientation of the imf ’ s functions. in particular, the revision of article iv, and the introduction of the surveillance process, explicitly recognized the close relationship between domestic economic policies and international stability. to this day, this forms the basis for our systematic and comprehensive review of economic conditions and policies in each member country. similarly, the wave of de - colonization that swept the world from the 1950s onwards placed new and complex responsibilities on the fund. the imf quickly found that countries looked to it for advice and assistance beyond the traditional macroeconomic areas of fiscal policy, monetary policy, and exchange rate systems. in addition to these subjects, imf advice and assistance were also sought on establishing the institutions of monetary and fiscal policy, and on supply - side structural policies to help promote sustained growth. in the last fifteen years, following the end of the cold war, new challenges were created in this regard by the transition of former centrally - planned economies to market - based systems. through our work in these areas, it also became increasingly clear that structural and institutional issues were important for stability and growth in other member countries too, including the major industrial economies. the area of imf financing has also seen great transformation. for example, although imf lending continues to be targeted at short - term balance of payments needs, our financing instruments have, for nearly two

rodrigo de rato : the imf in a changing world ( keynote address ) keynote address by mr rodrigo de rato, managing director of the international monetary fund, at the joint imf - bundesbank symposium “ the imf in a changing world ”, frankfurt, 8 june 2005. * * * thank you, mr. stark, for that opening and introduction. good morning – it is a great pleasure to be here today among this impressive gathering of experts from many countries. let me first thank the german authorities for graciously hosting this conference. their organization of this event is much appreciated. as you know, the imf was established about 60 years ago. the world economy has witnessed dramatic changes since that time. for instance, our membership has grown four - fold, from around 40 to 184. the world ’ s financial landscape has also been dramatically altered by the rise of private international capital flows. throughout the changes of the last six decades, the imf has continually evolved to meet the needs of its members and the international economic system. it is in that spirit of evolution and renewal that we meet today to discuss issues related to the international monetary system, financial stability and, more broadly, the imf ’ s role in the world economy. my remarks this morning may be conveniently divided into three sections : • the origins of the imf, addressing its purposes, objectives, and mandates. • main changes to the imf since its establishment, and the reasons for those changes. • some thoughts on the future role of the imf in the international monetary system. in going through these subjects, it is my hope that the developments and ideas in each section will provide useful context for your panel discussions later today. the imf and its origins we live today in a highly globalized and integrated world. however, some analysts may suggest that the global economy was actually more integrated at the end of the 19th century than it is now. in the first half of the 20th century, nationalism and protectionism disrupted this integration, setting off the great depression and contributing to world war ii. the imf – and the world bank, its sister institution – were established to restore an open system of trade and finance, help countries rebuild from the war and, in the process, hopefully build a new era of world peace and prosperity. against that background, a key part of the imf ’ s mandate today is the promotion and maintenance of monetary and financial stability, both in individual countries and at the