International Monetary Fund's Responsibility and Influence to Nation's Sovereignty

IMF controversy
Name:
Instructor:
Institution:
Date:
1. What are three of the most important points the IMF is responsible for with Global Business? Explain in detail for each one.
* Lending – the IMF is responsible for lending money to countries that have balances of payment. Lending is essential because it allows countries to replenish their reserves and grow their economy.
* Overseeing economic development – through economic surveillance, the IMF monitors developments that affect businesses, individual countries, and the whole world. This surveillance allows the IMF to formulate policies that lead to economic growth.
* Helping member countries modernize their economies – this is done by offering technical assistance that encourages the adoption of broader tax policies and flexible regulations.
2. Discuss all four aspects identified by critics who oppose the IMF. Do you agree/disagree, explain in detail.
There are four main criticisms of the IMF. First, critics argue that the conditions that the IMF attaches to loans interfere with the sovereignty of countries. Some of these conditions negatively impact banking regulations and increase government deficit. Second, the IMF has been criticized for imposing policies on countries without understanding their economic and political situation. Third, the IMF imposes numerous conditions at once rather than in intervals. Critics indicate that this phenomenon forces governments to focus...