Question

What are the various defects of IMF? How the powerful countries exploited the situation?​

Answer 1

Not only is the World Bank and IMF’s foundational approach

lacking in multiple realms, but both are completely undemocratic

institutions. Actions are hidden under a veil of secrecy that

protesters are just now trying to lift up. Taxpayers’ money

goes to fund these institutions; the public has a right to demand

accountability. Instead, the institutions pay greater heed to their

partners on Wall Street and have absolutely no public

responsibility. Any form of government that has no loyalty to the

voice of the people is unnecessary.

Officials at the IMF and World Bank are not elected and the

system’s basic structure is undemocratic. A nation’s

voice within the IMF and World Bank forum is directly related to

the size of its wallet. So, the rich, developed nations are able to

dominate the developing nations and dictate how they should evolve

economically. The institutions ensure that there are no barriers or

restrictions to the infusion of northern foreign capital within

developing markets. But basic history indicates just how

hypocritical these policies are, as the United States, in

particular, industrialized its economy under heavy protectionist

tariffs, and even still today has critical policies limiting

foreign competition in certain markets.

The interdependence and connectivity of world markets associated

with globalization is not what I protest against. I raise arms

against the unfair exploitation and outright abuse of fellow human

beings in the name of capitalism. Unfortunately, greedy, power

hungry governments and corporations have become obsessed with the

accumulation of monetary wealth at the expense of the world’s

poor. Under the facade of promoting free trade, they ensure their

edge on the market. The World Bank and IMF must stop serving the

needs of these pigs and wolves.

Answer 2

Answer:

Explanation:

The various defects of IMF can be-limited scope,indifferent treatment,unscientific fixation of quotas,faliure to remove exchange controls,fails to attain exchange stability,no solution of liquidity problem,failure to tackle problem of dollar system,dominance of developing countries,no provision for automatic revalution of currency,wrong assumption of par values,defective membership of executive of the fund,only secondary role.