IMF has always faced the accusation of being a biased organization. Lets find out how far is that true. You might interject my views with valid arguments but it is worth giving a thought.
THE IMF Conditionality does more good for the member states than harm. IMF plays a pivotal role in recovering the economies from financial crises by lending loans to member state in lieu of imposing certain conditions which helps member states repay and improve their economic conditions so that they can once again attain self-reliance.
Conditionality helps countries solve balance of payments problems without resorting to measures that are harmful to national or international prosperity. At the same time, the measures are meant to safeguard IMF resources by ensuring that the countrys balance of payments will be strong enough to permit it to repay the loan. IMF is always accused of controlling the economic and political policies of its borrower nations. However, as per the recently amended conditionalities, they have absolute freedom in electing, designing, and implementing the policies that will make the IMF-supported programs successful and ensure safeguarding of their funds. Most IMF financing feature disbursements made in installments so that they do not appear as a burden for the country.
In recent years, the IMF has become more flexible in the way it engages with countries on issues related to finance. Moreover, structural performance criteria requiring formal waivers have now been abolished and structural reforms are covered by reviews of overall performance of the program. This helps in resolving the member states without affecting their autonomous rights.
(The views expressed in this article are the authors opinions and do not reflect the opinion of TIE as a community.)