The IMF’s Controversy
The International Monetary Fund periodically develops programs to "rescue" countries from debt default. However, many developing countries argue that IMF policies often hurt the poorest of the poor, and sometimes to the advantage of rich countries and global corporations.
From time to time the economic growth of developing countries finds itself on a decline due to poor government policies or outdated reforms that undermine the possible promotion of the economy. In any case the IMF (International Monetary Fund) is often described as a “heartless” moneylender which provides developing countries with the option to adopt the IMF’s agenda and policies in order to provide a “solution” for economic growth.
Although most developing countries are already facing an economic distress and in need of fundamental reforms, the IMF’s primary goal is to provide short term loans to solve the balance of payment problems that a developing countries have along with special aids and technical advice on how to solve their economic problems.
The IMF currently controls approximately 60 country's economies by offering financial assistance during a debt crisis or loans for emergency conditions. The types of loans that the IMF administrates are often very particular in their policies and are called structural adjustment policies (SAPs). SAP loans are structured to help lift an economy out their debt by cutting funds to public services such education, transportation, waste management, environmental services, health and food assistance programs. In addition, SAP loans are designed for the IMF to help control the spending and the money flow throughout the respective countries.
According to Taner Berksoy, who serves as the d...
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