International organisations

In delivering the UK’s international economic and financial objectives, HM Treasury works with a number of key international institutions.

International Monetary Fund (IMF)

The UK is a founding member of the International Monetary Fund (IMF). It is governed by its 187 member countries and works to foster international monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. HM Treasury leads in Government on the UK’s engagement with, and policy towards, the IMF, in line with the Chancellor’s role as UK Governor of the IMF. Working with the Bank of England, we work to ensure that the IMF is a well-focussed, effective and efficient centre for international economic policy.

A new agreement on IMF quota and governance reform was secured in October 2010. This agreement will increase the voice and representation of emerging markets and developing countries at the IMF while maintaining the UK’s position as a major shareholder. HM Treasury engages with the IMF and international partners to ensure that the IMF is adequately resourced to continue to support its systemic role in supporting countries in distress. To ensure that the IMF can continue to carry out its global role in crisis prevention and resolution, there may be times when countries will provide more resources to the IMF, either on a permanent or temporary basis. The UK has previously made contributions alongside other countries, subject to IMF assessment that supplementary resources are needed. Similarly, HM Treasury also engages to ensure the IMF continues to enhance its surveillance of the global economy and its membership, including the identification and monitoring of emerging risks. This includes the IMF’s regular surveillance function, its annual Article IV consultation that it carries out with the UK and other countries, to discuss economic and financial developments and policy.

UK Delegation to the International Monetary Fund and World Bank (UKDel)

UKDel is the United Kingdom’s resident representation to the IMF. The UK’s Executive Director represents the UK at the IMF’s Executive Board. HM Treasury works very closely with UKDel to ensure that the UK’s interests are represented and it is able to fulfil its responsibilities as a member of the IMF, and take an active approach in preparing for IMF Board meetings and liaising with IMF management.

World Bank

The World Bank Group consists of five organisations:

the International Bank for Reconstruction and Development;
the International Development Association;
the International Finance Corporation; the Multilateral Investment Guarantee Agency; and
the International Centre for Settlement of Investment Disputes.

The organisations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organisations on all matters, including policy, financial or membership issues.

The Department for International Development (DFID) leads on issues relating to the World Bank across Government. HM Treasury works with DFID to ensure that HM Treasury interests are reflected in UK positions at the World Bank; Ministers and officials are kept appraised of key developments; and on matters relating to UK contributions to the World Bank.

G7/G20

The G20 is an informal group of 19 countries plus the European Union. It is often referred to as the premier forum for international economic cooperation, reflecting the growing role of the emerging market economies. The G20 has met regularly since 1999 at the Finance Minister and Central Bank Governor level, and aims to find measures to promote the financial stability of the world and to achieve sustainable economic growth and development. In November 2008, G20 country leaders met to coordinate their response to the global financial crisis. Since then there has been a G20 Leaders’ process as well as a G20 Finance Ministers’/Central Bank Governors’ process. Each country takes a turn to host the presidency of the G20, with Mexico holding the 2012 presidency, to be followed by Russia in 2013.

The G7 is an informal group of Finance Ministers and Central Bank Governors from seven industrialised nations: Canada, France, Germany, Italy, Japan, the UK and the USA. The group has met regularly since the mid 1970s, in formal meetings and informal discussions as economic circumstances require.

The G8 comprises the G7 countries plus Russia. Country leaders attend the annual G8 Summit of Heads of State and Government to discuss major economic and political issues. The G8 was created out of the G7 with the inclusion of Russia in the 1990s, and has particular focus on international security and development issues. The presidency of the G8 also rotates among the group's members, with the USA holding the G7 and G8 presidency in 2012. HM Treasury works alongside other government departments to provide input into the G8.

The Chancellor of the Exchequer and Governor of the Bank of England represent the UK at the Finance Ministers’ and Central Bank Governors’ Meetings in the G7 and G20. Together they represent the UK’s views and interests. As a member of the G7 and G20, the UK attends all of the meetings and takes a turn to hold the presidency. The UK last held the G20 Presidency in 2009, and will assume the G7/8 Presidencies in 2013. HM Treasury provides support to the Chancellor in his role as joint head of the UK delegation with the Governor of the Bank of England. HM Treasury also works closely with the Cabinet Office in order to ensure UK interests are coordinated in both the G20 Finance Ministers’ and Leaders’ tracks.

Organisation for Economic Cooperation and Development (OECD)

HM Treasury represents the UK on a number of OECD committees and working parties that look at economic and public policy analysis, including taxation. HM Treasury also regularly participates in country peer reviews and works to ensure standards on taxation are implemented through the Global Forum on Transparency and Exchange of Information for Tax Purposes– an OECD satellite organisation focused on compliance with global tax standards

Paris Club

HM Treasury leads the UK delegation to the Paris Club. The Paris Club is an informal group of 19 official creditor nations (those nations who are owed money by other countries around the world). The Paris Club attempts to ease the payment difficulties of the countries that owe money, so that they do not default and are able to repay the creditor nations. It does this by either cancelling the debt or rescheduling payments over a longer time period. The Club meets around 10 times a year in Paris.

Paris Club website

Financial Action Task Force (FATF)

HM Treasury leads the UK’s international policy on countering illicit finance and leads the UK delegation to the Financial Action Task Force (FATF) – the inter-governmental body that sets global standards on tackling money laundering and the financing of terrorism.

Financial Action Task Force