The International Monetary Fund, is an international organization established in 1945 as part of the United Nation system. Its creation was conceived at Bretton woods, to “…regulate the rates at which currencies were exchanged among member countries; and it would help ensure international stability by making loans at times of crisis in member countries’ balance of payments.” Since its creation, the IMF have gain enormous power in the international community, specially influencing the economic policies of third world countries. Currently, the IMF have 35 member countries with advance economy or emerging markets, and approximately 153 countries with developing economies; for a total of 188 member countries. Developing countries are for the most part the ones that constantly are asking for loans to the IMF for various reason, for instance, when a country is in a financial crisis and is unable to pay is foreign debt.
In order for a country to receive a loan from the IMF, the country has to accept a set of conditionality impose by the institution. These conditionality are sets of economic policies and financial measures based on what the IMF believe will help the economy of the country and safeguard IMF resources. According to Peet, “the institution appeals to the best of neoclassical economic science backed now by fifty years of experience in the loan business” to create the conditionality impose on each country. In recent years, the IMF has been severely criticized because, these conditionality have worsen the economic situation in many countries instead of improving them and the most affected have been the working class. The focus of this paper is (1) describe the principles, purpose and structure on which the IM...
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...se crises has been appropriate…not perfect, to be sure, but far better than if the structural elements had been ignored or the fund had not been involved”.
In conclusion, the International Monetary Fund had been subject to many criticism as it became a powerful international organization. Some argued that it has been destructive to the economy of third world countries. Other have argued that without the IMF the economic situation of these country would have been even worse. What this debate should teach us, is that it does not matter who is right; what matter is that the conflict exist. This should be consider as a first step in recognizing that something is wrong, either with the institution itself or the policies that is implementing. I believe that the institution certainly needs to be reform. Abolishing it, is not the solution.
Instead of the current administration making a swift and decisive action to deal with these insolvent institutions, there were many bureaucratic attempts to delay action so that the problems would not become a polit...
Crisis is an event that is unplanned, unwanted, and dangerous and leads to hard decision making. There are many different types of crisis such as economic crisis, mental health crisis, situational crisis, social crisis, adventitious crisis and many more. Every type of crisis affects people more than we think and know. There is always someone who loses and who gains during a crisis. People who lose are usually the ones who are affected the most such as losing a job, losing a family member or someone close to them, losing their homes and sometimes even their own lives. The people who gain are usually the rich people who prey on the poor and usually gain from making money and the poor’s lives miserable.
Echterling, Presbury and McKee (2005) define crisis as a turning point in one’s life that is brief, but a crucial time in which, there is opportunity for dramatic growth and positive changes, as well as the danger of violence and devastation. They further state that whatever the outcome, people do not emerge from a crisis unchanged; if there is a negative resolution, the crisis can leave alienation, bitterness, devastated relationships and even death in its wake; on the other hand, if the crisis is resolved successfully a survivor can develop a deeper appreciation for life, a stronger sense of resolve, a mature perspective, greater feelings of competence, and richer relationships.
Massachusetts Institute of Technology. (2000). The IMF and the World Bank: puppets of the neoliberalism onslaught. Retrieved April 05, 2014, from MIT website: http://www.mit.edu/~thistle/v13/2/imf.html
... should device ways of eliminating the causes of global financial crisis so that the effects of this crisis may not be experienced again in the world.
..., Crisis communication failures: The BP Case Study, International Journal of Advances in Management and Economics, Issue 2, March-April 2013, accessed 28 March 2014,
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
IMF and World Bank staffs. 100 Percent Debt Cancellation? A response from the IMF and the World Bank. (July, 2001): 1-6
The communication process is not something that begins when a crisis rears its ugly head rather it is a process that takes place in preparing for a crisis before it happens. While the term crisis represents a blanket term used to describe many situations, each situation is unique, thus presenting different obstacles to overcome. However, with a well-established advanced plan in place an organization places itself in a position to overcome and work around obstacles. The development of a comprehensive crisis management plan is one achieved through effective communication where each member of the crisis management team has an advanced shared understanding of his or her role and responsibility during a time of crisis (du Pr'e, 2005).
the effect that the work of the IMF and the World Bank have had on the
Joseph Stiglit’s focused on criticizing the International Monetary Fund (IMF) and how globalization makes the rich countries richer and the poor countries poorer. At first, I thought that the book was too technical for a beginner on the subject to understand, but he was able explain well the contents of this book. This book is very informational for people, who are into globalization and economic development. His sharp critiques on globalizations, particularly on the International Monetary Fund (IMF), that was based on his own experiences. In this book, he emphasized the effect of globalization on the Least Developed Countries as well as on the Developed Countries. I chose On Globalization and its Discontent because aside from the striking title of the book, it also the sincere opinions of Joseph Stiglitz. Also, I chose this book aside from it being required, I figured out that this book will be of good help for me in the near future – if I want to pursue this track – with all the information that were given by Stiglitz.
In conclusion, we feel that the recommendation we have suggested in this report is a suitable foundation to build a sustainable and prudent financial system in this country. This will facilitate the financial industry both, withdraw out of this crisis and in the future avoid as much as possible inducing the scale of matters at present. As the report suggest, everyone contributed in their own miniscule way to this crisis, we feel that it’s up to every one of us to contribute to the overall recovery of this financial crises and recovery of the nation in general.
Onimode, Bade. The IMF, The World Bank and The African Debt: The Economic Impact. London ; Atlantic Highlands, N.J., USA : Zed Books, 1989.
...nces discussed above. Right now, the global economic is recovering, but the study of reasons of the crisis still teaches many countries a lesson on how to build a solid financial system and how to deal with other macroeconomic problems.
Fifty-one countries established the United Nations also known as the UN on October 24, 1945 with the intentions of preserving peace through international cooperation and collective security. Over the years the UN has grown in numbers to include 185 countries, thus making the organization and its family of agencies the largest in an effort to promote world stability. Since 1954 the UN and its organizations have received the Nobel Peace Prize on 5 separate occasions. The first in 1954 awarded to the Office of the United Nations High Commissioner for Refugees, Geneva, for its assistance to refugees, and finally in 1988 to the United Nations Peace-keeping Forces, for its peace-keeping operations. As you can see, the United Nations efforts have not gone without notice.