Instant Access To 100,000+ Essays!

The IMF was created in 1945 with relatively limited functions and authority. It took on additional roles over time in response to fundamental changes in the world economy. As might be expected with a party that finances bankrupt countries, the IMF is subject to many controversies. An analysis of some of those controversies suggests that the IMF should focus on its core competencies and allow other entities to assume responsibility for other functions. Critics attack the IMF for making its loans conditional on a package of macroeconomic policies that result in an austerity program that prevents real economic recovery and crushes the hope of the people of the country. The IMF “standard form is a set of quantitative conditions on macroeconomic variables attached to a stand-by agreement.” The country must meet various objectives as a condition for the loan and later disbursements under the loan. (Harris, 199) The IMF or any creditor can properly make its loans subject to a package of conditions that controls how the debtor will conduct its business on a going forward basis to provide for repayment of the loan. However, in continuing the application of the same conditions designed to regain macroeconomic stability afte