The IMF describes itself as: "an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty". With the exception of North Korea, Cuba, Liechtenstein, Andorra, Monaco, Tuvalu and Nauru, all UN member states either participate directly in the IMF or are represented by other member states.

In the 1930s, as economic activity in the major industrial countries dwindled, countries attempted to defend their economies by increasing restrictions on imports. To conserve dwindling reserves of gold and foreign exchange, some countries curtailed foreign imports, some devalued their currencies, and some introduced complicated restrictions on foreign exchange accounts held by their citizens. These measures were arguably detrimental to the countries themselves as the Ricardian comparative advantage states that everyone gains from trade without restrictions. It is noteworthy to mention that, although the "size of the pie" is enhanced according to this theory of free trade, when distributional concerns are taken into account, there are always industries that benefit while others lose out. World trade declined sharply, as did employment and living standards in many countries.

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