CRITICISMS OF IMF

CRITICISMS OF IMF

• 1.
  *
• 2.
  1. Make worseeconomic problems: It argued that the conditions of IMF loans cause more harm than good 2. One size fits all: The IMF frequently argues for the same economic policies regardless of the situation 3. Takes away political independence: Countries such as Jamaica, argue that the IMF take away the ability for countries to decide national policy 4.Moral hazard: The IMF has also been criticized by the free market economists arguing that they do to much offencive
• 3.
  5.Conditions for loans: -It must implement certain economic policies which reduce government borrowings - Increase international rates to stabilize currency which allowing firms to go bankrupt 6. Exchange rate returns: - Remove controls over flows of capital. This can lead to more corruption - IMF doesn’t understand a country’s changing aspects 7. Devaluations: IMF has been allowing for inflationary devaluations
• 4.
  (Price of goodsand services are determined by open market and customers) 8. Free market criticisms of IMF: - Free market believers argue it is better to let capital markets operate without attempts at intervention -Arguments attempts to influence exchange rates only makes things worse 9. Lack of transparency and involvement: - Imposes policy with little or no consultation with affected counties 10. Supporting military authoritarianisms