New Zealand's Relationship with International Financial Institutions
Page updated 6 Mar 2009
Treasury has prepared information explaining the workings of the main International Financial Institutions (IFIs) of which New Zealand is a member – the International Monetary Fund (IMF), World Bank and Asian Development Bank (ADB) – and New Zealand’s role.
The origin of the IMF and World Bank lies in the experience of countries during the depression of the 1930s. Agreement on the functions of the IMF and World Bank was reached in December 1944 at Bretton Woods, New Hampshire. The purpose of the IMF is to ensure the orderly and stable growth of the world economy. The World Bank's central purpose is to promote economic and social progress in developing countries by helping to raise productivity so that people can live a better life. The IMF and World Bank were established in 1946, and commenced financial operations in 1947.
The idea of an Asian bank was conceived by the United Nations Economic Commission for Asia and the Far East (CAFE) in 1961. It took only two years for an agreement (known as the ADB's Charter) to be drafted and signed. New Zealand joined the Asian Development Bank in 1966 as one of its founding members.
Like other regional multilateral development banks, the ADB was modeled on the World Bank, however its focus is the development of the Asia-Pacific region.
New Zealand is an active supporter of the International Financial Institutions and participant in their debates and policy formulation. As a member of these institutions, New Zealand is also a shareholder and helps to fund their work through its subscriptions and capital contributions.
New Zealand's Contribution to the International Financial Institutions (IFIs)
New Zealand's shareholding in each IFI reflects the size of the New Zealand economy as a proportion of the total world economy. This shareholding is normally in the form of partly paid shares; the "called" or fully paid portion is classified as an investment within the Crown accounts. Both uncalled capital and promissory notes are treated as contingent liabilities in the Crown accounts.
| Institution | Investment $m |
Uncalled Capital $m |
Promissory notes $m |
| ADB | 81.4 | 1,080.7 | ... |
| WorldBank: IBRD IFC MIGA |
68.1 4.7 0.7 |
1,077.3 ... 5.8 |
... ... 0. 7 |
| IMF | 188 | ... | 1,727.3 |
All figures as at 30 June 2008
