Topic: Important International institutions, agencies and fora- their structure, mandate.
3. While the IMF has been credited with supporting economic growth and stability in many countries, it has also faced criticism for promoting neoliberal economic policies that prioritize the interests of wealthy nations and corporations over those of developing countries. Critically examine. (250 words)
Difficulty level: Tough
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 2 and mentioned as part of Mission-2023 Secure timetable.
Key Demand of the question:
To write a critique of IMF and suggest possible reforms in it.
Directive word:
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Introduction:
Begin by giving a brief about aims of the International Monetary Fund (IMF)
Body:
First, in brief, write about the major aspects of global economy that IMF deals with.
Next, using facts and figures to substantiate, give the successes and limitations of IMF in regards to – foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world etc.
Next, write about the shortcomings of IMF – IMF’s austerity measures, economic and social inequality, non-transparent manner, failure to adequately address the impact of its policies on the environment and climate change etc.
Next, suggest possible reforms that are needed in the IMF.
Conclusion:
Conclude by writing a way forward.
