IMF. By Nicholas Mahfood and Seya Meeks. Description of the Committee. The International Monetary fund is an organization that seeks to promote economic stability and growth for each of its 187 member countries.
By Nicholas Mahfood and Seya Meeks
The International Monetary fund is an organization that seeks to promote economic stability and growth for each of its 187 member countries.
It is a specialized agency of the United Nations governed by its own charter, structure and finances.
It was created as a response for the necessity to rebuild nation economies after the end of Word War II.
The funds main mission is to provide policy advice and financing to countries undergoing economic difficulties.
Its is common for countries to acquire debt when their revenue is not sufficient to fulfill their obligation to their citizens, such as public services, governmental salaries and all other activates provided to taxpayers.
In most cases, countries, usually developing countries, acquire debt under very unfavorable condition and circumstances.
When a country can achieve economic growth, it opens opportunities to develop.
There were advantages in the HIPC, but many people believed that it was not fully formed and was too discerning in its decisions as to which countries should be permitted this debt relief.
The HIPC had to evaluate each country and examine its external debt to decide whether its debt was sustainable. However, the HIPC only took into account one factor to decide whether the debt was sustainable, making countries ineligible.
Also, some of the changes made to the country were not very drastic, thus not improving the financial situation very much.
In 2010, a report was made by ECLAC (Economic Commission for Latin America and the Caribbean). The report was about the world’s financial situation after the economic crisis.
Between 2008 and 2009, export levels around the world dropped by 30%.
Despite this, developing countries look less time to recuperate from the crisis.
This has aided in other countries around the world recovering from the crisis.
Asia began the restoration of the economy, and places such as Latin America and Africa were guided by Asia’s restoration.
Not all countries, however, have dealt well with the crisis. Countries with unsustainable debt have not been able to recover from the crisis and get back their economies from before the crisis.