Business law international - Essay Example

This will be a help or support provided by the IMF to support countries which are suffering from capital flight. It stated that the IMF has allowed for an emergency finance mechanism so as to facilitate the countries which have been hit by the prevailing financial crisis. The scheme has been said to be a sppedy procedure for the approval of loans, as stated by the IMF chief Dominique Staruss-Khan and was used in the financial crisis in 1997. It is a procedure which has its legal validity and has been stated to be procedure adopted by the IMF in situations of credit crisis.

It was stated that due to slump in demand in Western economies there had been cut in credit lines which had adversely affected emerging economies and due to this the IMF stated it was willing to provide assistance to countries which are in need to funding. . Similar grants were also provided to Philippines, Thailand, Korea and Indonesia after the Asian financial crisis erupted in 1997.Another thing that needs to be pointed at this time is that in October the Permanent Peoples' Tribunal, an international organization which is an esteemed and highly regarded convened in Madrid so as deliver a judgment on the institutions that is World Bank and IMF.

The evidence which had been provided was analyzed and expert witnesses were called upon and their judgments were looked into. The Tribunal issued a sentence of guilty. It was stated that the policies that had been adopted by the IMF and the World Bank infringed human rights and were found to be homicidal. The session of the Tribunal was a follow up on the pledge that had been vowed by the previous session which had taken place in Berlin in 1988 so as to assess the policies of the institution with regard to international law and the right to self determination.

It had been assessed that the policies of the IMF and the World Bank are in contradiction with the constitutive treaties and the basic principles of International Law. Further it has been stated that the policies of the World Bank and the IMF can not be unfettered when they are in violation of the international law. Thus it had been stated by the Tribunal that the UN General Assembly should direct the International Court of Justice to set limitations on the competence of the IMF and the World Bank.

Further it has been stated that the International Human rights should be adopted as a part of International Law to affect the policies of the IMF.In the current situation there have been put forward by the IMF