INTERNATIONAL MONETARY FUND: POSITIVE AND NEGATIVE EFFECTS Modern world is consumed by a phenomenon called «globalization». <...> Globalization is a global process of political, economic, religious and cultural integration. <...> Nowadays we can observe specialization and labor division everywhere. <...> The world is driven by international economic relations. <...> Global trade has risen significantly over the past decades. <...> International trade plays a key role in global economic system. <...> While international economic relations had been spreading around the world the need in supranational organization aimed at controlling the process in question emerged. <...> Thus, such organization as the IMF was created in terms of Bretton Woods Conference on 27 December 1945 and officially started to operate from 1 March 1947. <...> Nowadays 189 countries are members of International Monetary Fund with 2663 employees from this countries1[1]. <...> Basically, the IMF is an organization which fosters global monetary cooperation, secure financial stability, promote high levels of employment, steady economic and reduction of poverty mainly by providing short- and longterm loans to countries with deficit in balance of payments. <...> In a nutshell, IMF operates to improve the economies of its members. <...> As a rule, the IMF helps developing and poor countries rather than developed ones. <...> Although it may seem that such an organization has only advantages and positive sides, it also has drawbacks and there are even a group of people who assume that the IMF is harmful for countries which receive loans from it. <...> In order to estimate positive and negative sides of the IMF it is necessary to understand the way IMF works and its internal organization. <...> The highest executive authority is the board of governors, which consist of representatives of country members and their substituents. <...> The authorized capital of the IMF is 217 billion SDR(Special Drawing Rights). <...> SDR are artificial reserve currency defined and maintained by the International Monetary Fund. <...> So, entering the IMF every country must contribute certain amount of money that is called quota,as a membership fee. <...> Quota serves for determining the amount of money a certain country can receive as a loan and for determining the number of votes that entering country <...>