Glossary

Definitions of terms used throughout CountryReports.

This glossary contains 1,144 terms used throughout CountryReports — political, economic, cultural, historical, and geographic terminology referenced in country profiles and articles. Terms are drawn from authoritative sources including the Library of Congress.

Bretton Woods System: A structure of fixed exchange rates developed at the 1944 Bretton Woods Conference, which established the International Monetary Fund (q.v.) and the World Bank (q.v.). The Bretton Woods System was in effect until 1971.
dinar: Basic currency unit consisting of 1,000 fils; created in 1950 as replacement for the Palestinian pound. Dinar’s value was established at parity with the British pound sterling, or a value of US$2.80 equal to JD1. Jordan, as a member of the sterling area, maintained parity with the British pound until 1967 when the British devalued their currency. Jordan did not follow the pound, retaining the dinar at US$2.80 equal to JD1 through 1972. When United States currency was devalued in 1973, the dinar was unlinked from the dollar, since which time the rate has fluctuated. Beginning in February 1975, the dinar was pegged to the special drawing right (SDR--q.v.). According to International Monetary Fund (IMF--q.v.) data, the average conversion rate of the dinar for trade and other purposes was US$3.04 in 1987, US$2.1 in 1988, and US$1.54 in 1989.
IMF (International Monetary Fund): Established along with the World Bank (q.v.) in 1945, the IMF is a specialized agency affiliated with the United Nations that takes responsibility for stabilizing international exchange rates and payments. The main business of the IMF is the provision of loans to its members when they experience balance of payments difficulties. These loans often carry conditions that require substantial internal economic adjustments by the recipients.
Inter-Governmental Group on Indonesia (IGGI): An international group of lenders established in 1967 by the Netherlands to coordinate multilateral aid to Indonesia. The other members included the Asian Development Bank, International Monetary Fund (q.v.), United Nations Development Programme, World Bank (q.v.), Australia, Belgium, Britain, Canada, France, Germany, Italy, Japan, New Zealand, Switzerland, and the United States. In March 1992, Indonesia announced that it was rejecting further IGGI aid as long as the Netherlands chaired the organization. IGGI was replaced by the Consultative Group on Indonesia (q.v.).
International Monetary Fund (IMF): Established on December 27, 1945, the IMF began operating on March 1, 1947. The IMF is a specialized agency affiliated with the United Nations that takes responsibility for stabilizing international exchange rates and payments. The IMF’s main business is the provision of loans to its members when they experience balance of payments difficulties. These loans often carry conditions that require substantial internal economic adjustments by the recipients. The IMF’s capital resources comprise Special Drawing Rights and currencies that the members pay under quotas calculated for them when they join. These resources are supplemented by borrowing. In 1993 the IMF had 167 members.
monetarists: Advocates of monetarism, an economic policy based on the control of a country’s money supply. Monetarists assume that the quantity of money in an economy determines its economic activity, particularly its rate of inflation. A rapid increase in the money supply creates rising prices, resulting in inflation. To curb inflationary pressures, governments need to reduce the supply of money and raise interest rates. Monetarists believe that conservative monetary policies, by controlling inflation, will increase export earnings and encourage foreign and domestic investments. Monetarists have generally sought support for their policies from the International Monetary Fund (q.v.), the World Bank Group (q.v.), and private enterprise, especially multinational corporations. The University of Chicago economist Milton Friedman is considered to be a leading monetarist.
Paris Club: The informal name for a consortium of Western creditor countries (Belgium, Britain, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United States) that have made loans or have guaranteed export credits to developing nations and that meet in Paris to discuss borrowers’ ability to repay debts. Paris Club deliberations often result in the tendering of emergency loans to countries in economic difficulty or in the rescheduling of debts. Formed in October 1962, the organization has no formal or institutional existence. Its secretariat is run by the French treasury. It has a close relationship with the International Monetary Fund (q.v.), to which all of its members except Switzerland belong, as well as with the World Bank (q.v.) and the United Nations Conference on Trade and Development (UNCTAD). The Paris Club is also known as the Group of Ten (G-10).; Source: Library of Congress
riyal (SR): Saudi Arabia’s currency unit. Riyal is pegged to the International Monetary Fund (q.v.) special drawing rights (SDR--a unit consisting of a basket of international currencies) as SR4.28 = SDR1. In May 1993 the exchange rate was SR3.75 = US$1, a rate that had not changed since June 1, 1986.
special drawing rights (SDRs): Monetary units of the International Monetary Fund (q.v.) based on a basket of international currencies including the United States dollar, the German deutsche mark, the Japanese yen, the British pound sterling, and the French franc.