The work of International Monetary Fund (IMF ) has three types control , provision of technical assistance and lending . The latter offers short financing to support policies for correcting balance of compensatements riddles over and above loans to create countries aimed at alleviating scantiness . In addition , IMF also takes partition in the fight against money laundering and terrorism . In return , the countries assisted by IMF are usually needful to embark on the IMF-monitored sparingal reform course of studyThe loans are prone out to countries with the condition that each will implement the program . However , this reform program is said to be an tyrannic and inhumane way of providing assistance to countries facing economic douse . Oftentimes , these countries prioritize financial concerns over social ones therefore , they are being required to open up their economies to un corresponding investment , privatize public enterprises , and cut government outlay which then made them suffer from improper fund tryst for government programs . Also , some foreign corporations tend to solve the situation by taking advantage of the cheap labor party in the country without loose consideration for the environment (The IMF at a Glance , 2007Austerity programs exist when the government reduces its spending to pay off creditors , i .e . IMF . The IMF requires a country to pursue nonindulgence insurance for repayment of loans that are near due . such policies may include the following : stop issuing bonus , reduce public spending , and raise prices , among others . In the experiences of countries like Argentina , Russia , and Brazil , the austerity programs severely affected their economies . In Argentina , the pegging of peso to dollar resulted in overvalued national silver , hence , etitive exports , depressed wages , soaring interest rate , ballooning foreign debt , and high unemployment rate . Also , these programs were designed for all countries and do not cater to specific needs of each country .
As a result , IMF fails to have-to doe with its objective of helping the poor countries and even aggravated the economic condition of the country (Cooper , 2001The successes of IMF are built on the phylogeny projects being implemented by the poor countries . By giving out loans , IMF is contributing to alleviation of poverty in these countries where poverty is reduced to a certain extent . However , these successes are overshadowed by the failures of the organization which are discussed herein . First , the beggar-thy-self policy did not achieve its intention of making the country s citizens to be better off rather it presented disastrous effects in the country and its region . Since the GDP declined , cutbacks on import occurred and consequently , regional exports were reduced . Second , IMF was created to promote global economic stability but some of its policies such as seat of government and financial market liberalization in developing countries contributed to asymmetry Third , IMF has evolved thru time and so as its mandate . The problem with this evolution is that IMF cannot openly announce its new mandate so it resorted to formulation of amalgamation of policies which are ineffective and lacks intellectual cohesiveness . Other aspects of IMF such as organizational structure and rules of deal out contribute to...If you want to get a full essay, line of battle it on our website:
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