Answer to Question #236454 in Economics for Thewilly

Question

Consider the criticisms of the IMF and the World Bank. Do you feel that their practices are required for accountability purposes, or do you believe that they unfairly threaten the sovereignty of certain nations? Furthermore, how would you shape the policies of the IMF and the World Bank, if you had the proper authority to do so?

Answer 1

The International Monetary Fund (like the World Bank) is often criticized by various academics and politicians. There are many reasons, but most often they mention the pro-American nature of the IMF's actions and the ineffectiveness of its recommendations for getting out of crisis situations.

It should be borne in mind that votes in deciding on the actions of the Fund are distributed in proportion to contributions. To approve the decisions of the Fund, 85% of the votes are required. The United States has about 17% of all votes. This is not enough for independent decision-making, but it allows you to block any decision of the Foundation. The US Senate may pass a bill prohibiting the International Monetary Fund from taking certain actions, for example, granting loans to countries.