Question

I need help

Considerable debate exists concerning the role and methods of the International Monetary Fund (IMF). Is the world better off with the IMF or should it be abolished in your opinion? Justify your answer.

Answer 1

IMF is discriminatory.The member countries receive votes according to the amount of funds they contribute.So rich countries receive more votes than poor ones.The organization also discriminates between developed and developing economies.IMF is not sure of its role.Till 2008 the organization concentrated on developing countries but at present its attention has turned towards Eurozone. IMF prefers stability over growth.It is less concerned with long term growth and only lays stress on short term stability.The IMF gives help to unstable financial institutions It tries to help unstable institutions rather than helping national economies grow.The politicians shun their responsibility of helping sick financial institutions because the IMF bails them out.So IMF should abolished.