Question 10GS2GS2

Discuss the role of the International Monetary Fund (IMF) in the development of developing countries. What are the key criticisms associated with its approach? (Answer in 150 words)

Introduction

IMF developed as Bretton Woods institution in 1945 post WWII but has now faced criticism wrt its policies 103rd Constitutional Amendment Act, 2019 granted 10% reservation in education and employment to economically weaker sections, thereby heralding a new era of affirmative action.

42 words

Main Body

IMF developed as Bretton Woods institution in 1945 post WWII but has now faced criticism wrt its policies

Role of IMF:

1Grant of credit during BoP cases @ Pakistan

2SDR as strategic asset of countries

3Policy guidance for development

4Gives economic growth rates for both decision making

1Hypocrisy shown granted loan to Pak

2West centred

Criticisms:

3Too much conditions

4Promote asymmetric conditional

5Promotion of trade war by agreeing to US

Measures:

1Have strategic autonomy

2Bilateral Trade Agreements

3Promote India First approach

India can navigate IMF by pushing for reforms within with like minded nations

103rd Constitutional Amendment Act, 2019 granted 10% reservation in education and employment to economically weaker sections, thereby heralding a new era of affirmative action.

103rd CAA, 2019 Breached 50% limit on reservation for forward in India Sawney Case 1992

Bounded reservation of basis other than caste

For those not covered under SC, ST, OBC castes. Income limit-8 lakh p.a.

Implications of this judgment/amendment for broader goal of social justice

(I) Positives:

1Introduced broader idea of social justice by delivering from concept of historical injustices

2Arriving at decision based onnew yardsticks of backwardness

3Class not caste taken into account for affirmative action

4Demonstrates other reasons of incapacity than caste dynamics

5Promotes idea of reasonable classification under Article 14

However, such decision also have some challenging ramifications

(II) Negatives | Challenges:

1Could open pandora box for affirmative action Demand

2Women, LGBTQIA+ etc

3Could divert motive of development by promoting reservation as end in itself

4Can be a potential disenchantment among unreserved class

5Difficult to passes income every year - cases of fake EWS certificates being mixed on social media

6Revision in EWS list every year - inclusion and exclusion errors

While 103rd CAA, 2019 opens up new era of affirmative justice, it should be complemented by increasing capability theory of citizens. So that they act as 'job giver' rather than 'job seekers'

337 words12 paragraphs

Conclusion

India can navigate IMF by pushing for reforms within with like minded nations While 103rd CAA, 2019 opens up new era of affirmative justice, it should be complemented by increasing capability theory of citizens. So that they act as 'job giver' rather than 'job seekers'

45 words

Diagram

Flowchart showing criticisms of IMF with branches including hypocrisy, west-centric approach, too many conditions, asymmetric conditions, and trade war promotion. Separate section on Measures with strategic autonomy and bilateral trade options

Historical contextualization of IMF
Lists key functions clearly
Uses specific example (Pakistan)
Articulates specific criticisms
Proposes India-centric solutions
Emphasizes multilateral reform strategy
References landmark judgment (Sawney)
Clearly explains the amendment's scope
Distinguishes from previous affirmative action models
Comprehensive analysis of positives and negatives
Uses contemporary examples (fake certificates)
References constitutional principles (Article 14)
Proposes nuanced way forward
Balanced perspective on complex issue

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Page 24

Topper

Ananya Rana

AIR 602025

Subject & Paper

GS2GS2

Topic

International Institutions, Agencies and Fora - Structure and Mandate

IMF Role in Development

IMF's Development Functions and Criticisms

Writing Stats

424

Total words

Paragraphs

critical-prescriptive

Tone