Has the IMF played a condtructive or destructive role Does it serve any purpose in the 21st century - Essay Example

Has the IMF played a constructive or destructive role? One of the universally accepted definitions of the international monetary fund put it as an international organisation debuted back at year 1944 during a conference. It was formerly established in year 1945, where it had 29 member countries. Its primary goal was stated as assisting in rebuilding global payment systems. Its primary source of funding was from contributions of the member countries. After collections, these funds were to be directed towards nations that experienced payment imbalances (Vreeland & James pg 20).

Through contributions and other support activities IMF has helped in improving economies of its members. The IMF has grown and experienced changes over the last years. Many have embraced this change, while there has been some that have not accepted it. Its members have been increasing, from the initial thirty to over 188 members. This organisation claims to foster financial stability, global monetary corporation and economic stability to its members (Freytag pg 20-30). Its objectives are geared towards promoting international economic, Corporation, creation of employment, establishing sustainable exchange rate and availing funding to its member states.

The role of the international fund about the 21st century is addressed by analysing the success and failure rate. Since its debut, this organisation has funded numerous nations, where there has been failure or success. The facts present a concrete factor that present this organisation as failing. Though there are success cases, the failures often lower the impact of these cases. One notable case is the one witnessed in Tanzania. After the IMF stepped in to save this declining economy, its economy lowered.

The employment rate decreased and the literacy level dropped. All this occurred within period from 1985 to 2000 (Research Activities of the International Monetary Fund: January 1991-December 1998 pg 26-30) Conclusively, the role played by this organisation cannot be ignored. It continuously helps nations to recover from economic failures. It is lending surveillance police have benefited many and still proves to in years to come. In order to change the faulty image over the years, there must be some adjustments.

This adjustment will enhance its role and make it productive as many presume it to be.Works CitedFreytag, Andreas. Success and Failure in Monetary Reform: Monetary Commitment and the Role of Institutions. Cheltenham: E. Elgar, 2002. Print.Research Activities of the International Monetary Fund: January 1991-December 1998. Washington, D.C: International Monetary Fund, 1999. Print.Vreeland, James R. The Imf and Economic Development. New York: Cambridge University Press, 2003. Print.