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IMF successes and failures

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What are examples of IMF successes and failure?

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Solution Summary

Whether IMF policies aid developing nations or prevent them from prospering.

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The IMF was established by the United Nations in 1944 to provide loans to distressed countries at a relatively low interest rate. Nations having balance-of-payments problems can borrow from the IMF for short time periods if they agree to follow IMF recommendations. Typically, these require that the debtor nation follow an austerity program that limits government spending, domestic consumption, and imports. The IMF advises governments on macroeconomic policies which affect its exchange rate and its budget, money and credit management. Generally the IMF requires that countries devalue their currencies and cut government spending. The stated goal of the IMF is economic stability.

Many criticize the IMF because it tends to support the status quo, often military dictatorships. These regimes, while friendly to the US and Europe, tend not to be overly-concerned with human rights. ...

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