Globalization and Its Discontents - Assignment Example

This shows that if a country has to prosper in terms of finance and economics it has to improve its structure internally and then ask for help from outside sources. Hence if a country is in the developing stage and is not practicing its economic policies properly, the International Monetary Fund also cannot be of much help. One example of such a country is Botswana which improved itself internally and prospered over any other country in Africa.

When Botswana got independence it was suffering from a severe financial crisis. And it was of utmost importance to address the issue properly. Botswana was rich in agriculture and diamonds but lacked the resources to make use of both these assets. The assets in the country did not prove to be lethal for them as they were used in the right way. This was quite beneficial for the country to achieve a stable economy. The political leaders of Botswana believed in national integrity and worked towards the betterment of the state.

And thus Botswana did not approach the International Monetary Funds for any kind of aid. But they received advice and suggestions from the outsiders who belonged to public or private institutions. These advisories helped in devising a future plan for the country. They laid out plans which involved the whole structure of the country and not only one department. The advisors selected by the state were properly interviewed and then hired. This showed that the state was being controlled properly and each and every individual in the state had the spirit to move the country towards prosperity. For e.g.

the deputy governor who was referred to by the IMF was only hired by the state when he was interviewed. This clearly illustrated that the state was internally stable and was working towards the betterment of the state. The state of Botswana maintained a good relationship with the International Monetary Funds throughout its history. The advisories of International Monetary Funds helped the state of Botswana in tackling the problems of economics in the state. And these advisories were highly honored by the state of Botswana.

Botswana was not helped properly by the IMF when it faced the problem of liquidity. But this was because of the requirements of the IMF. An economic policy should be devised before asking for any financial help from the IMF. This generally is a correct way of handling the situation as the IMF provides support so that the state can prosper further. However, even then the state of Botswana was strong enough to pass through these problems.