We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

How effective has the IMF been in helping countries in financial difficulty - Essay Example

Comments (0)
Summary
A nation in severe problems and unable in compensating its international bills poses possible problems for the stability of the international financial system which was created to be protected by the IMF. IMF has programs with more than fifty nations and has committed more than…
Download full paper
GRAB THE BEST PAPER
How effective has the IMF been in helping countries in financial difficulty
Read TextPreview

Extract of sample
How effective has the IMF been in helping countries in financial difficulty

Download file to see previous pages... On issuing loans to nations, the IMF makes the loan conditional on the execution of specific economic policies. The policies enacted may involve allowing failing companies to go bankrupt, putting higher interest rates in stabilizing the currency, reducing borrowing from the government and structural adjustment (Rogoff, 25). The big issue is that the structural adjustment policies make the situation to be worse. For instance, in the Asian crisis that happened in 1997, nations such as Malaysia, Thailand and Indonesia were instructed by IMF to follow tight monetary policy and tight financial policies in reducing the budget deficit and strengthening exchange rates.
Argentina was forced in the same financial restraint policy in 2001. This led to the damage of economy as there was a decline in public services investment. It is also seen that when IMF intruded in Kenya in the 1990s, it made the Central bank abolish controls over capital flows. The consent was that the decision made it easier for dishonest politicians to transfer money out of the nation’s economy. This reveals how IMF did not understand the dynamics of the nation it dealt with.
In conclusion, in responding to the public demands in addressing the debt crisis of poor nations and offering debt reliefs, IMF introduced the Highly Indebted Poor Countries Inventiveness in 1996 (Feldstein, 18). This was a big disappointment because of the insufficient debt relief supplied and its SAP requirements. Before a nation became eligible for debt relief under the Highly Indebted poor nations, it was supposed to successfully complete six years of structural amendments. The objectives of Highly Indebted Poor Countries were not to sustain debts in the poor countries, but to minimize losses incurred by the rich ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Why do governments in less developed countries have difficulty in restraining money supply growth in order to control inflation
at a lower level of output, therefore reduction of money supply in order to tame the onrush of inflation will lower their output even further and thereby trapping it within a vicious circle. Here on one hand the economy suffers from a low level of output for a prolonged period
3 Pages(750 words)Essay
IMF
to IMF and World Bank macroeconomic programmes prescribed for developing countries whose economies are going through the throes of stagnation, decline, debt, and fiscal imbalances. Adherence to structural adjustment programmes (SAPs) have been used by the IMF (and the World
8 Pages(2000 words)Essay
In conditions of perfect capital mobility and a floating exchange rate, monetary policy may be effective in achieving both internal and external balance - discuss its applicability to IMF members which are developing countries
Let us start our analysis on the basis of a small open economy characterized by the existence of a flexible exchange rate regime. The exchange rate is determined by
4 Pages(1000 words)Essay
The World Bank and IMF effects on developing countries
The loan provided by these and other interlinked institutions are used as leverage to prescribe, dictate and in some cases impose the policies and reforms for improving economic conditions of these debt-ridden impoverished countries. Following the “one dollar, one
28 Pages(7000 words)Essay
'How effective is the legal and regulatory environment for Small and Medium Sized Businesses in Saudi Arabia and what needs to be done to improve the environment for their growth'
From the need for a regulatory environment that promotes access to finance and lessens the regulatory burden on firms, to legislation that makes the overall environment more predictable and transparent for industry as a whole,
5 Pages(1250 words)Essay
The role of the IMF (international monetary fund) in helping poor and debt-troubled countries
The IMF gets its funds through contributions from various countries that have a right to borrow resources and those with payment imbalances can temporarily borrow money. Riesenhuber (2001)
4 Pages(1000 words)Case Study
The role of the IMF in helping poor and debt-troubled countries
s criticism; some of the most traditional criticisms are that it is too short-run oriented, it does not pay attention to its impact on growth, it is too focused on demand management, and its programs affect social spending. This paper delves into unravelling the concept of
3 Pages(750 words)Essay
The role of the International monetary fund (IMF) in helping poor and debt-troubled countries
Originally, the principal role of the international monetary fund (IMF) was to consider appraisals made by countries in need of funds. The chief role of the IMF is to cover up the budget deficits of countries
4 Pages(1000 words)Essay
The role of the IMF in helping poor and debt-troubled countries
The IMF is a special branch of the United Nations that is operated by 186 member states, though membership is open to any country that accepts the foreign policy and the statutes of the
4 Pages(1000 words)Assignment
Should the IMF attach conditions to the credits its extends to developing countries
Sometimes when these financial agencies are doing so, they do not consider at least the social cost that the debtor country will have to pay. The reforms embodied in the IMF have been argued to have come disproportionately at the expense of wages, employment,
3 Pages(750 words)Essay
Let us find you another Essay on topic How effective has the IMF been in helping countries in financial difficulty for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us