Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. The International Monetary Fund (IMF) needs to recognise the changing economic dynamics of developing countries and undertake restructuring and reforms accordingly. Comment. (250 words)
Difficulty level: Moderate
Reference: InstaPedia
Key Demand of the question: To write about how India can cope up to the disruptions in NCD services due the covid-19 pandemic.
Directive word:
Analyse – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Introduction:
Begin by giving context regarding the role of IMF in the global economy.
Body:
First, write about the various limitations regarding IMF – archaic rules, domination of developed countries, changing economic weight of emerging countries, stressing on completing quota reforms, quota determines its voting power as well as its borrowing capacity, Article IV consultation reports are utilised by credit rating agencies, impacting the fund-raising capacity of countries like India and maintaining data integrity
Write the reforms that are needed in the IMF to acknowledge the emerging markets increasing their share in global output or GDP over the years.
Conclusion:
Conclude with a way forward.
