AY

Aryan YadavAIR 31

Question 10GS2GS2

विकासशील देशों के विकास में अंतर्राष्ट्रीय मुद्रा कोष की भूमिका पर चर्चा कीजिए। इसके दृष्टिकोण से जुड़ी समीक्षाएं क्या हैं? (उत्तर 150 शब्दों में दीजिए)। 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)

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AnswerStrengthsGapsKeywords

Introduction

The IMF was formed in the Bretton Woods conference along with World Bank in 1945 The 103rd Constitutional Amendment Act introduced reservation for Economically Weaker Sections (EWS) upto 10.1. by amending Art IS & 16

35 words

Main Body

The IMF was formed in the Bretton Woods conference along with World Bank in 1945

Role of IMF in development of developing countries:

1Provides short term loans to countries paying Balance of Payments crisis

Ex: India in 1991 received IMF loans

2Helps in debt relief for adjoining countries

Ex: Sri Lanka in 2019

3Promotes macro economic reforms

Ex: opening up of India's economy after 1991 (LPG reforms)

4Provides direct financial support via loans

Ex: Argentina in 2015

Key criticisms:

1Forcing of economic reforms (Washington Consensus) is seen as encroachment on state sovereignty
2Over reliance on austerity measures, leading to extreme inequalities in nations
3Dominance by USA (veto power) & western nations
4Politicization of IMF loans
5Misuse of IMF loans

Ex: Pakistan terror funding

Reforms are needed to make IMF more inclusive for the New development bank (NDB) of BRICS

The 103rd Constitutional Amendment Act introduced reservation for Economically Weaker Sections (EWS) upto 10.1. by amending Art IS & 16

Positive implications:

1Affirmative action for poor households having income below 8 lakhs/annum
2Ensuring substantive equality under Article 14 by providing support to EWS
3Will help reduce high income inequality in India → TOP 1.1. own 40.1 of wealth (OXFAM India)
4Help address the scale of legal opportunities for EWS
5Upholds principle of economic justice enshrined in preamble hence is in line with Constitutional morality (Writ of mandamus)
6Will help tackle economic mobility for poor by providing reservation in education

Negative Implications:

1Original purpose of reservation was social injustice & not economic
2Would lead to further demands for reservation well beyond 50+ ceiling of Indira Sawhney case
3Potential for manipulation by falsifying income statements of households
4Exclusion of SC/ST/BC from EWS reservation
5SC/ST fear that income becomes main criteria for reservation

Ex: SC recommended creamey layer for SC/ST in Darinder Singh case

6The 103.1. code has been questioned as arbitrary
7Income criteria met be updated regularly to account for inflation

SC upheld Lord (CA) in Somhit Abhiyan case holding it to be a constitutionally valid method of affirmative action

359 words7 paragraphs

Conclusion

Reforms are needed to make IMF more inclusive for the New development bank (NDB) of BRICS SC upheld Lord (CA) in Somhit Abhiyan case holding it to be a constitutionally valid method of affirmative action

35 words

  • Provides historical context (Bretton Woods 1945)
  • Uses relevant case studies (India 1991, Sri Lanka 2019)
  • Connects IMF role to specific economic reforms
  • Provides balanced critique of IMF policies
  • Mentions Washington Consensus as key criticism
  • References alternative institutions like BRICS NDB
  • Includes specific examples of IMF criticisms
  • Clearly identifies the amendment and its scope (10.1%)
  • Provides specific income ceiling (8 lakhs/annum)
  • Uses OXFAM data on wealth inequality
  • Connects to constitutional principles (Article 14)
  • Provides balanced analysis with both positive and negative implications
  • Cites relevant Supreme Court judgments (Indira Sawhney, Somhit Abhiyan)
  • Addresses concerns of SC/ST communities
  • Discusses implementation challenges (income verification, inflation adjustment)

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Page 24

Topper

Aryan Yadav

AIR 31

Subject & Paper

GS2GS2

Topic

International Institutions and Development

Role of International Monetary Fund (IMF)

IMF's Development Role and Criticisms

Writing Stats

429

Total words

7

Paragraphs

critical-analytical

Tone