IMF Strengths and Weaknesses Flashcards
1
Q
Strengths
A
- econ growth post war, Organisation for Economic Cooperation + Development (OECD) countries were experiencing growth rates 4-5% /yr
- bulwark against econ disasters e.g. bailed out Greece 2007-08 crisis, >35 countries $200 billion
- provided expertise for member states and adaptability after 1971 when it refocused to debt + development, ended fixed exchange rate, support for ex-communist countries after cold war
- increased representation to developing countries like Argentina, Colombia, Mexico, biggest loan to Pakistan
2
Q
Weaknesses
A
- OECD countries growth possibly due to other causes e.g. application of Keynesian economics, stimulus effect of US economy
- didn’t predict the 2008 crisis despite one of its aims being surveillance, lack of regulations of banking + financial sector
- seen to interfere with state sovereignty e.g. Greece, promotes neoliberal western-dominated econ model benefitting the rich companies in developing countries
- SAPs v controversial, didn’t benefit the poorest, not v democratic, US has virtual veto power bc it puts in the most money and decisions require 85% but US has 17%
