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NEERAJAIR 180· 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?

Open scan (p.47)

Main Body

IMF is Bretton-Woods institution provides loans for countries facing balance of payment crisis. Example: India received bailout in 1991 BoP crisis. Role of IMF in address debt distress: (1) Provide Different facilities for different needsimmediate relief based SDR quotes. (2) Concessional funding for poverty alleviation programme. (3) A Technical guidance to ensure macroeconomic stability. Issues with debt-distress of globalsouth: (1) "Conditionality" imposed on countries leads to austerity & poverty. (2) Lack of reform in quota & representation to global south. (3) Clandestine functioning instruction of west USA. (4) Questionable funding$ 1 bn for Pakistan after Operation Enduring.
Issues with debt-distress of global south continued: Issues with Debt-distress of Global south: (1) "Conditionality" imposed on countries leads to austerity & poverty. (2) Lack of reform in quota & representation to global south. (3) Clandestine functioning instruction of west USA. (4) Questionable funding$ 1 bn for Pakistan after Operation Enduring. Push IMF Reform: (1) Build alternativityNew Development Bank of BRICS. (2) Criticise through voice minded countries eg Voice of Global South Summit. (3) Greater funding to IMF by India. (4) Leverage relation b/w west & East (China/Russia) to build Concern. Thus reformed IMF is need of our as FM Modi-led '21st century software cart' run on 21st century IT power.
216 words1 paragraphs

Conclusion

Thus reformed IMF is need of our as FM Modi-led '21st century software cart' run on 21st century IT power.

20 words

Diagram

Diagram showing IMF's role in addressing debt distress with main issue 'Structure debt along with players' branching to (5) Client clearing plan and (5A) Structural adjustment plan

Topper

NEERAJ

AIR 1802025

Subject & Paper

GS2GS2

Topic

International Institutions, Agencies and Fora - Structure and Mandate

Important International Institutions

IMF Role in Debt Management

Writing Stats

236

Total words

1

Paragraphs

critical, analytical

Tone