So Far International Monetary Fund (Imf) Has Been Failed to Curve Corruption, Reduce Public Spending and Develop Macroeconomic Policies

4014 WordsNov 2, 201217 Pages
“So Far International Monetary Fund (IMF) Has Been Failed to Curve Corruption, Reduce Public Spending and Develop Macroeconomic Policies.” What is IMF? The International Monetary Fund and the World Bank were created in 1944 at a conference in Bretton Woods, New Hampshire, and are now based in Washington, DC. Now it is an organization 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. Nearly all members of the United Nations are members of the IMF with a few exceptions such as Cuba, Lichtenstein and Andorra. (About the IMF:IMF Website) The IMF was originally designed to…show more content…
✓ Lack of Transparency in Operation: The undemocratic make-up of the IMF 's boards is compounded by a lack of transparency in their operations. Still beyond the reach of the public is any knowledge of how decisions have been reached and what the process and reasoning was behind the decisions. For example, at the IMF, executive board documents are published after five years, executive board minutes are released after 10 years, and other archived material is available after 20 years. The time lag means no decisions can be scrutinized until well after they have been implemented. Even when documents are released, they are only available at the IMF 's offices in Washington DC. This effectively makes even the archives inaccessible to most politicians, groups and individuals outside the US, an appalling situation tor a global institution. ✓ No Voting System for Taking Any Decision and Electing Managing Director: Normally, there is no formal vote on decisions taken by executive directors. The UK Treasury states that instead they "are taken on the basis of consensus". In practice this does not mean that all executive directors agree on the decisions to be taken. In reality, once the chair of the board meeting informally senses a majority to votes has been found on an issue, executive directors in opposition

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