GS2 · 10 marks · 150 words

Discuss the role of the International Monetary Fund (IMF) in the development of developing countries. What are the key criticisms associated with its approach?

Answered by 11 toppers · CSE 2023–2025

Syllabus: Important International institutions, agencies and fora- their structure, mandate.

How toppers approached it

From all 11 answers · about 150 words · 36% drew a diagram.

Opening

Body

Zinnia AuroraAIR 6 · CSE 2025 · 165 wordsTheir whole copy

Opening

Bretton Woods Institution - International Monetary Fund is a financing agency accredited to the UN that was originally the IBRD.

Body · points and prose

Diagram

* IMF * advancing loans in emergencies * contingency backers of economics * integration of world economy * Research and development finance

Role of IMF

Article IV aid to developing countries. a) 1991: India
Provision of discounted loans in times of crisis a) Sri Lanka financial crisis of 2020
Aids economic restructuring to help achievement of self reliance a) aid to East Europe post 1991
Advances economic research and innovation in financial instruments
- World economic outlook
Country roadmap mapping and economic advisory on quota basis
Cutting strings of terror finance
- FATF help

Key criticisms

West's tool to advance own interests
- Forced restructuring of developing economies to suit MNCs.
Aid to authoritarian governments and terror sponsoring states.
- Loan to Pakistan during Operation Sindoor.
Geopolitical tool hegemonized by the United States basis quota dynamics
Rising global economic uncertainty not captured properly

Close · a summary

Thus, IMF remains a crucial international financing institution but with need for 'reformed multilateralism'.

The UN, WTO, IMF, World Bank and multilateral fora.