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The Role of IMF(International Monetary Fund) and its impact on Poblic Policy in China and South Korea - PowerPoint Presentation Example

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This region has a high population of about 1.5 billion people, who forms 38% of the whole Asian continent. Compared to the whole world, this region comprises of over 20% of the…
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The Role of IMF(International Monetary Fund) and its impact on Poblic Policy in China and South Korea
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The Role of IMF(International Monetary Fund) and its impact on Poblic Policy in China and South Korea

Download file to see previous pages... This necessitates the need to establish the role played by the IMF in promoting these countries development.
IMF is an international organization that was established in the post world war II period. The aim of its establishment was to enhance the stability of foreign exchange. It was also meant to create a channel through which international payment systems would be reconstructed. This followed the disruption of the payment systems during the World War II. Initially, it had a membership of 44 countries. However, its membership stands at 188 in present day. The member countries contribute towards a common pool, from where countries with deficits can borrow. The roles of the IMF have also changed, to include financial and technical assistance to affected member countries.
The effects of IMF in East Asia are innumerable. However, the most significant is the assistance of these countries during the financial crisis of East Asia in 1997. Nevertheless, the critics of this role argue that the IMF did not save the situation. They argue that that the higher interest rates charged, the tight monetary policies issued and the forced cut in government budget worsened the situation. However, it is apparent that the financial bailouts given to these countries by the IMF helped them to recover from the crisis.
The IMF has influenced China’s public policy in various ways. It maintains and engages in policy dialogue with the Chinese authorities. It helps the Chinese government refine its economic and structural refer issues. The IMF identifies and monitors economic development in China. It helps the Chinese government and authorities undertake developmental and policy implementations. It achieves this through exchanging views regarding these issues.
The economic situation of China has changed since it joined IMF. China has grown immensely both economically and socially since joining the IMF. It has ...Download file to see next pagesRead More
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