question_answer

  What is IMF? How does it work?                                     Or 'International Monetary Fund is not truly a democratic institution. Justify this statement with three suitable examples.                                                     Or Do you think that the IMF works in democratic manner? Justify your answer with arguments.

Answer:

                  The International Monetary Fund (IMF) is an international organisation that was created on 22 July, 1944. The IMF describes itself as 'an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world'. The IMF is one of the biggest money lenders in the world. The IMF works to foster global growth and economic stability. Its member states do not have equal voting rights. Financial contributions from member countries are linked to voting power in the organisation. Nearly half of the voting power is in the hands of only ten countries viz. the USA, Japan, France, Germany, UK, China, Italy, Canada, Saudi Arabia and Russia. The remaining countries have hardly any or very little say in how such an international organisation takes decisions. Christine Lagarde of France is the Managing Director of IMF.