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

The IMF was established as a Bretton Woods town institution in 1945.

Role of IMF in development of developing countries:

1. Membership pre-condition for World bank loans.

2. Helps maintain fiscal prudence: eg: India's financial crisis 1991.

3. Aids in governmental finance structure: eg: Ten structure, market structure of the economy, eg: Pakistan's agricultural sector.

4. Revision of quotas for borrowing and special drawing rights for emergencies.

5. Provision of reserve arrangement for temporary mismatch.

6. Aids structuring of the economy: eg: Pakistan's agricultural sector.

Thus, the IMF plays a pro-active role but is also seen as a tool of the US-led western order.

Led western order:

eg: LLG policy to benefit western market interests.

Criticism found:

1. Rigid approach - ospat stipites, virtues for strafjacket approach - one size fits all.

2. Economic reforms not beneficial to all countries: eg: Sri Lanka's crisis

3. Non-inclusive nature - led to closer AIIB as competition.

4. Arraying of global south - eg: African counties leading to political instability and coups.

6. Far removed from ground reality: agricultural poor in India.

7. Use of IMF as diplomatic tool: eg: Loan to Pakistan amid terror attacks - Hypocrisy.

The 103rd Constitutional Amendment Act enshrined reservation for economically weaker sections in public institutions for education and in public employment.

Major base:

Affirmative action (EWS affirmative action):

Implications for broader goals of social justice:

1. Ensures income limit of Rs 8 lakhs per annum.

2. Excludes people with asset ownership.

3. Provides opportunities to poor but unscheduled categories.

4. Breaks the cycle of poverty.

5. Moves beyond caste and tribal identity.

Issues with EWS reservation:

1. Rs 8 lakhs per annum salary very low threshold

2. Use of forged documents for availing benefits

3. No cap on parental/sibling/family income.

4. Difficult to establish asset ownership misused by underserving candidates.

5. However, given the need for poverty reduction alleviation, the following can done to improve upon it:

1. Proper background verification.

2. Family asset ownership verification.

3. Social audit of certificates issued.

4. Transparency and disclosure of names/families.

Thus, the initially addresses institutional inequality, upholding constitutional principles.

Annum.

2. Includes people with asset ownership.

3. Provides opportunities to poor but unscheduled categories.

4. Breaks the cycle of poverty.

5. Moves beyond caste and tribal identity.

Issues with ENS reservation:

1. Rs 8 lakhs per annum salary very low threshold

2. Use of forged documents for availing benefits

3. No cap on parental/sibling/family income.

4. Difficult to establish asset ownership misused by underserving candidates.

However, given the need for poverty reduction alleviation, the following can done to improve upon it:

1. Proper background verification.

2. Family asset ownership verification.

3. Social audit of certificates issued.

4. Transparency and disclosure of names/families.

Thus, the initially addresses institutional inequality, upholding constitutional principles.

Done to improve upon it:

1. Proper background verification.

2. Family asset ownership verification.

3. Social audit of certificates issued.

4. Transparency and disclosure of names/families.

Thus, the initially addresses institutional inequality, upholding constitutional principles.