CONTRIBUTIONS OF THE IMF

CONTRIBUTIONS OF THE IMF

Member countries of the IMF have access to information on the economic policies of all member countries, the opportunity to influence other members’ economic policies, technical assistance in banking, fiscal affairs, and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade and investment.

The IMF is only one of many international organisations, and it is a generalist institution that deals only with macroeconomic issues; its core areas of concern in developing countries are very narrow. One proposed reform is a movement towards close partnership with other specialist agencies such as UNICEF, the Food and Agriculture Organization (FAO), and the United Nations Development Program (UNDP).
Jeffrey Sachs argues in The End of Poverty that the IMF and the World Bank have “the brightest economists and the lead in advising poor countries on how to break out of poverty, but the problem is development economics”.

IMF loan conditions cannot stand alone and produce change; they need to be partnered with other reforms or other conditions as applicable, summarily the following are common areas IMF have contributed to the development of developing countries:
1. Economic development
2. Support of military dictatorships
3. Impact on access to food
4. Impact on public health
5. Impact on environment

References

Narasimhan, M. (2008), The International Monetary System – Its shortcomings and iniquities in relation to developing countries, Chaugen Art Press, New Delhi India.

Fischer, Stanley (2003). “Financial Crises and Reform of the International Financial System”. Review of World Economics. Springer Publications.

Buira, Ariel (2003). “An Analysis of IMF Conditionality”. G-24 Discussion Papers . United Nations Conference on Trade and Development (22).