The Pros And Cons Of The International Monetary Fund

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The International Monetary Fund (IMF) was originally created by a group of member countries to act as a tool for economic growth and progression through providing loans to countries. These loans would enable the borrowing countries to trade on an international level, build industry, and create jobs (Global Exchange, 1999). In more recent years, due to major debt crisis’s, the IMF have more so assumed the role of bailing out countries in need than acting as a booster. In order to bail out a country in a manner that would encourage reform, structural adjustment policies (SAPs) were put in place for the countries taking out loans. Zimbabwe was one of these countries that needed bailing out and as such accepted a particular set of SAPs in order to take a loan out. Unfortunately, this was not such a great thing for Zimbabwe.

When these SAPs were first created, the focus was to assist countries get out of the pickle they were in. Sadly, this is not what these policies have ended up doing for the majority of the countries who have been borrowing from the IMF
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3. Jalloh, B. (2007). THE IMF AND WORLD BANK ARE MAJOR CAUSES OF POVERTY IN AFRICA. Global Envision Retrieved February 10, 2016, from https://www.globalenvision.org/library/23/1524.

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