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Role of IMF in poverty alleviation - Research Paper Example

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The role played by the IMF in support of economic reform, in developing countries has been an issue of considerable criticism and scrutiny over many years. In 1999, the IMF and World Bank embraced a framework that could support developing countries. The framework consisted of…
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Role of IMF in poverty alleviation
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Download file to see previous pages PRGF supported programs were derived from a member’s PRSP that ensured that the reforms it supported were owned by the county and oriented to realizing economic growth and poverty reduction goals (Vreeland 3). Although it may be too early to appraise the new framework’s success in achieving the objectives, it is time to evaluate progress to this day and discover shortcomings that may need course corrections in the initiative’s design and implementation.
The IMF was initiated at the Bretton Woods Conference in 1944 and created by 29 countries in 1945. The international organization’s main objective was to help in the construction of international payment system after the Second World War. Member countries help to contribute funds through a quota system where countries that face payment imbalances can borrow money and other resources. Through the fund, and surveillance of member countries economies and self-correcting policies demand, the organization works to recover the economies of member countries. IMF headquarters is in Washington, D.C. (Jensen 3). The IMF works to promote world’s monetary cooperation and ensures that there is a financial stability, aid international trade, assists in employment issues and economic growth to alleviate poverty in the world. The IMF objectives are in the Articles of Agreement; they are: promoting international economic co-operation, employment, international trade, and the stability of the exchange rate by making finances available to members in order to meet the needs of the balance of payments (Woods 2).
The IMF fosters economic stability and global growth. The organization offers advice to policy matters and financial support to member countries that are in economic difficulties. IMF works together with developing countries to help them achieve economic stability and poverty reduction. The justification for this support is that international capital markets work imperfectly, and ...Download file to see next pagesRead More
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