This website uses cookies to ensure you have the best experience. Learn more

International Monetary Fund Essay

1532 words - 6 pages

It has been illustrated that the IMF was a tool or technology to spread liberalism and that the Washington Consensus formed the theoretical framework the IMF would aspire to work within. However another variable needs to be examined to understand this mode of power, that is the incentive for developing nations to succumb to this mode of power. One particular incentive implemented by the IMF was that of credit.
As Hoogvelt article discusses that credit as a means to acquire capital flows were added by the strategic implantation of nationalizing private debt. The nationalization of debt was legitimized through concepts of economic develop and national sovereignty (Hoogvelt 125). A further tactic used in debt control of the states that had been promoted by the IMF was the devaluation of the currency which effectively was a tax on the public that to alleviate a government domestic debt (Hoogvelt 125). Further compounding the problems of the developing nation were the neoliberal pressure as exerted through the IMF for states to sell off at barging prices their state owned enterprises (Hoogvelt 126). Thus we see the developing state’s role being reduced to that of legitimizing debt devaluing public assets.
Drawing off of Hoogvelt’s writings we can see some existing critiques of the IMF’s agenda of liberalization. He mentions how even IMF and World Banks economic standards, the policies prescribed and structural adjustment contracts have led to a decline in growth rates, and some states have experienced hyper inflation. Hoogvelt illustrates the risks of deregulation of financial markets by giving examples of corporate credit schemes that require have no regulation on reserve capital and how essential corporate bonds and repackaging of debt and loans allows for anonymity (Hoogvelt 123) in the trading of financial assets presenting a risk for developing nation of reintegration of illegitimate capital (Hoogvelt 124). However new tactics of addressing development are still being examined by the IMF.
One of the newer tactics the IMF has implemented in its strategy both to liberalize economies and to deal with development issues is Micro-credit and Micro-finance. Weber suggest that the Micro-credit is a way of gaining some cultural capital in that entrepreneurs are frequently in positions of influence geared towards a neo-liberal agenda whether through education media or methodologies (Weber 195) micro-credit has been strategically designed and employed through the Exchange Stability Fund to poverty intervention for the purpose of preventing social struggles turning into acute political conflicts in situations such as the Bolivian experiment (Weber 196).

Eventualization, Growing Pains of a New Global Financial Apparatus
Why the 2007 Credit Crisis important to Development? It may seem unobvious and worth questioning why it is important to study the credit crises of the 2000’s. One might ask if the crisis was primarily based on the US sub prime...

Find Another Essay On International Monetary Fund

Role of the International Monetary Fund

2297 words - 9 pages I, like many people, have always heard about the International Monetary Fund in the news yet never really knew or understood its inner workings, this report over views what the International Monetary Fund is, how it works, and how it is currently involved internationally. The International Monetary Fund (IMF) is a form of world credit union that has 187 countries involved, a near global involvement. The International Monetary Fund’s was

WORLD BANK AND INTERNATIONAL MONETARY FUND EVOLUTION

2521 words - 11 pages In spite of their extensive criticisms the World Bank and the International Monetary Fund have benefited the global south. The end of World War II saw the world in great need of reconstruction. In July of 1944 the Bretton Woods Conference was held over twenty-two days with 44 allied nations in attendance and with the intention of devising a plan to regulate the international monetary and financial order. At this conference the groundwork was

Financial Crises and the International Monetary Fund

3043 words - 13 pages the government to believe that it was “too big to fail” and intervention was necessary. The financial crisis was an international one, not confined to the US. The International Monetary Fund reported at the end of 2009 that there had been over $4.1 trillion in toxic assets, $2.7 trillion from the US alone. One of the consequences of American strength in the global economy were the adverse effects that impacted US trading partners and the rest

The International Monetary Fund and Balance of Payments

2057 words - 9 pages /journals.asp Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2010). Multinational Business Finance. (12th ed.). Boston, MA: Pearson Education, Inc. International Monetary Fund (IMF). (n.d.a). About the IMF. Retrieved March 9, 2014, from http://www.imf.org/external/about.htm International Monetary Fund (IMF). (n.d.b). Balance of payments and international investment position statistics. Retrieved March 9, 2014, from http://www.imf.org/external

Triumphs and Tragedies of the International Monetary Fund & World Bank

1946 words - 8 pages organization's services obsolete? A closer examination of the organization and its workings, its problems, and its opponents positions reveals the answers to these questions.The International Monetary Fund officially started operating on March 1, 1947. The philosophy behind the organization was mainly influenced by two men: Harry Dexter White and John Maynard Keynes. They were both heavily influenced by main economic and political events of the 1920

The World Bank and the International Monetary Fund, Interchangeable But Different

805 words - 4 pages The World Bank and the International Monetary Fund are two organizations that are used interchangeably, but are function very differently from one another. Both the World Bank and the International Monetary Fund were created during the post-World War II era to help stabilize the international economy. The IMF focuses mainly on international affairs and finance of the whole world, where the World Bank directs its attention toward developing

The goal of this paper is to discuss the origin and role of the International Monetary Fund

1367 words - 5 pages The goal of this paper is to discuss the origin and role of the International Monetary Fund. The International Monetary Fund is a specialized agency of the United Nations system that was set up by a treaty in 1945 in order to help improve the world economy. The IMF's headquarters is located in Washington, D.C.; 184 worldwide country representatives govern it. The IMF works for global wealth by promoting the balanced expansion of world trade

To What Extent has the International Monetary Fund Impacted the Democratic Republic of Congo under Mobutu Sese Seko?

1356 words - 5 pages Part A: Plan of Investigation To What Extent has the International Monetary Fund Impacted the Democratic Republic of Congo under Mobutu Sese Seko? The International Monetary Fund (created in 1945) was conceived by the meeting of representatives of 45 countries in Bretton woods, New Hampshire, United States to support countries facing debt crisis. The aim of this internal assessment is to examine the effect the IMF has had on the Democratic

International Monetary Systems

1256 words - 5 pages rate floats and there is a liquid foreign exchange market, reserve holdings are seldom required. Basically, floating exchange rates overcome the seemingly innate tendency of countries to delay adjustment” (Carney 2009). Not only is the basic goal of the global monetary system sustains a methodical system of payments between nations (Constancio, 2011). To this point, the international monetary fund has to deliver the services of a domestic currency

The United Nations Is the Answer To The Worlds Problems

626 words - 3 pages The United Nations Is the Answer To The Worlds Problems The issue of whether or not the United Nations should be disbanded is a complex two-sided answer. Some may say that no the United Nations should remain in society because of all the good the organization has done for the world such as UNICEF. Others may argue that the United Nations have done more harm than good, like the fact that your voting rights in the International Monetary Fund

Bretton Woods System

971 words - 4 pages International Bank for Reconstruction and Development [World Bank] and The International Monetary Fund (Stwenron, 1944). The conference set the standard of gold to $35.00 and selected the American dollar as the backbone of international exchange. The goal of the conference was to create a system through these financial institutes for economic co-operation and development leading to stable and robust global economy (International Monetary Fund, 2013

Similar Essays

The International Monetary Fund Essay

2495 words - 10 pages 1. Introduction 1.1 What is the International Monetary Fund (IMF)? “The International Monetary Fund is an organisation that provides short-term credit to 186 member nations. The International Monetary Fund works to maintain orderly payments arrangements between countries and to promote growth of the world economy without inflation. It supports free trade in goods and services. To stabilize its members’ economies, the IMF provides policy advice

International Monetary Fund Essay

1942 words - 8 pages International Monetary Fund Intro: In July 1944, the United Nations Monetary and Financial Conference met in Bretton Woods, New Hampshire, to find a way to rebuild and stabilize the world economy that had been severely devastated by World War II. One result of the conference was the founding of the International Monetary Fund (IMF) through the signing of its Articles of Agreement by 29 countries. The stated purposes of the IMF

International Monetary Fund Essay

7307 words - 29 pages INTRODUCTIONFounded 53 years ago in the turbulent era of the 1940s to stabilise the world economy, the International Monetary Fund (IMF) has become outdated, ineffective, and unnecessary. Most of the economic conditions that led to the IMF's creation no longer exist; in addition, the Fund has failed to achieve most of its own newly defined roles, a preponderance of which merely duplicate the functions of other existing agencies and

The International Monetary Fund (Imf) Essay

2616 words - 11 pages The International Monetary Fund, is an international organization established in 1945 as part of the United Nation system. Its creation was conceived at Bretton woods, to “…regulate the rates at which currencies were exchanged among member countries; and it would help ensure international stability by making loans at times of crisis in member countries’ balance of payments.” Since its creation, the IMF have gain enormous power in