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GAURAV CHOPRAAIR 83· 2025

Question Q19Critically examineGS2GS2

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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Answer

Introduction

International Monetary Fund (CIMF) is the global multi-lateral institution for ensuring transparency in currency exchange and international debt.

18 words

Main Body

International Monetary Fund (CIMF) is the global multi-lateral institution for ensuring transparency in currency exchange and international debt.

Positive Role of IMF in addressing debt Distress:

1Apex Institution: IMF is the apex institution for handling international debt.
2Ensuring Transparency in debt conditions and agreements.
3Aid to debt-ridden countries to manage their payments.
4Collective action → IMF Board contains plural influential country like USA.

Limited Role in addressing Debt Distress:

1Limited ability to control Debt Trap Diplomacy at China. [E] Sri Lanka Crisis at 2022.
2External Imposition of Washington Consensus on countries → impact Sovereignty. [E] India's 1991 BOP crisis-LPG.
3Inability to mandate structural change. [E] IMF gave bailout to Pakistan 21 times → though no change.
4Hegemony of Global North → USA and Western countries using it for their economic system.
5Slow work towards the needs of Global South vis-a-vis North. [E] expedited relief package for Greece.
Indiapast G20 momentum to push Reforms in IMF
1Push towards Global Consensus: Collectively use NAM as the voice of global south.
2Use its ability of being connector of Global North to Global South. [E] invited to G7.
3Use synergy to push for reforms in all multilateral bodies like IMF, world Bank, UNSC.
4Find like-minded partners. [E] G4 for UNSC reforms.
5Leverage its HADR credentials. [E] Vaccine Maitri and helping Sri Lanka during debt crisis.

Above steps will go long way in reforming IMF.

246 words3 paragraphs

Conclusion

Above steps will go long way in reforming IMF.

9 words

Examiner score
1.2/10

Open original scan

Page 47

Topper

GAURAV CHOPRA

AIR 832025

Subject & Paper

GS2GS2

Topic

International Institutions, Agencies and Fora - Structure and Mandate

Important International Institutions

IMF Role in Debt Management

Writing Stats

273

Total words

3

Paragraphs

analytical

Tone