AJ

ASTHA JAINAIR 9· 2025

Question Q.19GS2GS2

Critically examine the role of International Monetary Fund (IMF) in addressing debt distress in the Global South. How can India use its post-G20 presidency momentum to push IMF reforms?

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AnswerStrengthsGapsKeywords

Main Body

IMF was established in the Bretton Woods conference in 1944 to regulate global monetary flows.

Role in addressing debt distress:

1Provides funds to tackle urgent BoP crises (e.g. India in 1991)
2Relief from high interest rates by giving concessional loans
3Pakistan scent lean
4Support weak economies by giving supple in debt adjustment
5African nations
6Protect countries of global South from debt trap →
7Chinese loans led to debt trap → Sri Lanka, Pakistan etc
8Transparent procedure + loan conditions unlike China
9Reduces dependency on other players such as open market
10Help in structuring of economy → promote LPG reforms
4Chinese loans led to debt trap → Sri Lanka, Pakistan etc.
5Transparent procedure + loan conditions unlike China
6Reduces dependency on other players such as open market
7Help in structuring of economy → promote LPG reforms

Issues:

1Overweening judgment → values rights 24/7 to US
2Biased institution → promotes interest of western institution
3Conditionalities such as opening economies → long term loss
4SDR allocation also skewed towards global North → (g) India only x
5Couldn't provide debt relief in many countries

World is going through a phase of constant flux, both rapidly changing geopolitical area.

(i) Under Trump, EU's idea of right, Chinese aggression etc.

Entry formal endorsement not preferred
a) Complicates partnershipas world powers intervened (g) India highest under wraps

b) Complexities involved (g) Taliban a terror org

(ii) Global need + reputation at Statethus need of covert diplomacy

d) Rigidities in engagements

d) Rigidities in engagements

Engagement without endorsement:

1Ensure diplomatic Agtt (diagram showing Afghanistan, China, Pakistan, and India)
2India-Afghan shares deep ties
3Maintain continuity in relations
4People's People ties in Afghan
5Protect mutual interest (g) Counter Pakistan's terrorism propaganda
6Ensure synergy on creating areas of cooperation:

a) Economic b) Political c) Projects

India - Syria SAARC, building Salma Dam, Indian investment in Afghan (LOIT-IJON)

(B) Gives diplomatic headstart(g) China-Russia - left already engaging
(C) Invert blackbox syndromemaintain communication b/w nations
1Issue based partnership with flexibility
a) Continued human rights violation by Taliban in Afg concernsb) Against ideological tenets of India (g) Democracyc) IT sector sponsorshipd) Pakistan leverage in Afg hamper India-Afg ties
Waya) Can deepen partnership ahead (e) Mining cooperation (b) Issues strengthen
(B) Gives diplomatic headstart(g) China-Russia - left already engaging
(C) Invert blackbox syndromemaintain communication b/w nations
1Issue based partnership with flexibility
a) Continued human rights violation by Taliban in Afg concernsb) Against ideological tenets of India (g) Democracyc) IT sector sponsorshipd) Pakistan leverage in Afg hamper India-Afg ties
Waya) Can deepen partnership ahead (e) Mining cooperation (b) Issues strengthen.
480 words13 paragraphs

Conclusion

Gives diplomatic headstart → (g) China-Russia - left already engaging. Invert blackbox syndrome → maintain communication between nations. Issue based partnership with flexibility. Can deepen partnership ahead through mining cooperation and strengthen issues between India and Afghanistan.

37 words

Diagram

Map showing Afghanistan with bordering countries - China, Pakistan, and India

  • Contextualizes IMF's historical role
  • Addresses contemporary debt crises
  • Connects G20 presidency context
  • Identifies structural critiques of IMF
  • Mentions SDR allocation inequality
  • Acknowledges complexity of Taliban engagement
  • References contemporary geopolitical context
  • Comprehensive coverage of India-Afghanistan relations
  • Identifies key areas of cooperation
  • Addresses concerns about Taliban
  • Provides specific projects as examples
  • Balances pragmatism with ideological concerns
  • Identifies specific cooperation areas
  • Acknowledges regional power dynamics

Open original scan

Page 47

Topper

ASTHA JAIN

AIR 92025

Subject & Paper

GS2GS2

Topic

International Monetary Fund

IMF Role in Global South Debt Crisis

IMF Lending and Debt Management

Writing Stats

517

Total words

13

Paragraphs

Analytical

Tone