Sunday, March 9, 2014
Criticism of International Monetary Fund (IMF)
As everybody Knows the IMF is a monetary fund based in the United States who helps countries in times of need and give them funds in return of much needed and I may say forced reforms so that the countries can get back to economic growth and pay the loan back to the IMF. Now as with all the things humans have created, IMF is not without its critics and its opposition mostly from the countries where they have lent money. And it is true that they have screwed one times too many but I believe that no country is forced to come to the IMF or the IMF does not offer its services just casually. There is no force or coercion that some country has to approach IMF to get funds. The countries are free to follow their own economic policy and generate its own revenue. When they don’t do this it means that they are not serious out raising revenue or are not interested in following prudent economic policy. But once you approach IMF don’t expect that you will get the loans with any conditions or requirements to fulfill because they want to get back their money they have lent so there will be some harsh medicine to be taken with these kinds of loans. And as with every loan you get from a bank or other places there will be costs attached to it. So approaching IMF without doing your homework in terms of paying back the loans and its conditions should be the first step towards securing the loan. Constructive criticism is good but if you are going to just say that terms are bad or one should not approach it then just fix the economy yourself instead of coming with a begging bowl in your hand, getting the loan and then criticizing it for all the wrong reasons.