Imf- Full Employment

In: Business and Management

Submitted By ssbr29
Words 531
Pages 3
Trade and investment have made the countries’ economies more interdependent. With this said, the IMF position is very important to the stability of the World’s economy, ensuring that the various economies prosper and thus promoting a strong global financial system. The IMF keeps track of the global economy and assists those countries in need. IMF reduces vulnerabilities to crisis, by educating countries on financial and economic policies, thus promoting growth and stability.
I believe to some extent the IMF helps many nations get back on their feet, by providing loans to troubled economies. This in other words, by investing in one’s economy, that country has the financial means to produce and be a more competitive market. However by receiving these loans, countries are subject to severe austerity measures that might not be in the best interest. Let’s take the example of one biggest borrower: Greece. Greece had over 32 billion Euros in emergency loans from the IMF, and yet it struggled to stay afloat, and more importantly it was the first country to fail to pay back its’ IMF loan. Greece was getting money however it was being mismanaged creating a crisis and a bigger hole for Greece. IMF has the potential to promote economic growth and reduce poverty however it’s up to each country to make use of that money wisely. Greece didn’t and IMF failed on surveillance letting Greece get to a state of desperation. IMF loans are subject to the scrutiny of the international community, and should be more carefully monitor in order to promote a stronger global economy. It is hard enough when there are aspects of economies that cannot be foreseen such as natural disasters, which affect a countries economy. Here with Greece, the IMF failed to see that Greece was failing to implement the austerity procedures and they were giving misleading information on its financial…...

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