MEASURES TO REFORM IMF

SA’AD SHAIKH
CRITICISMS OF IMF

 IMF propounds the idea of free trade and

in the bargain forces poorer nations to
aggressively deregulate their markets and
become liberal.
 This has led to a global price war at the
advantage of the richer nations.
 Also, U.S and Euro hold key and strong
positions in the institution, thus influencing
the decision making process.
CRITICISMS OF IMF

 IMF has been inefficient in obtaining global

financial stability – thus resulting in a
global meltdown.
 The funds present with the IMF are by far
insufficient to meet its demand.
 Bottom line - Critics argue that the IMF
has helped make the rich, richer and the
poor, poorer – which in reality should be
the other way round.
MEASURES TO REFORM IMF

 Firstly, reform which takes place should be

across a range of areas to make a
significant impact on the current crisis.
 Reforms must engage the full spectrum of
its member nations – the rich and the poor,
the developed and the under developed.
 Secondly, the IMF requires to triple its
current fund holding i.e. Around $250
billion to around $750 billion to meet
current global requirements.
MEASURES TO REFORM IMF

 The IMF should also monitor the current

banking reforms in order to obtain global
financial stability.
 Also, the Board of Directors should be
transformed from a bureaucratic body to a high
– level decision making forum of ministers.
 These reforms will not be possible unless and
until U.S and Euro is ready to give up their
strongly held positions. This will all help to fight
immediate crisis, foster global financial stability
and reduce poverty.
THANK YOU!