Main Body
3Increasing debt burden due to non-repayment of loans by debtor countries → creates cycle of dependency. 4) Dominance of few nations in IMF. UK & USA holds more than 40% of quota. 5) Absence of consensus mechanism in decision making. Value of vote dependent on quota held → lower quota by global south. 6) Absence of post payment accountability towards use of IMF loans. Multiplicity of loans by Sri Lanka. Successes of IMF in addressing debt distress in global south: 1) Facilitated economic reforms. In India post 1991 reforms.
2Saved from hyperinflation of economic & political erosion. Sri Lanka's Debt crisis of 2022. 3) Helped undertake development measures and counter China's debt trap diplomacy. Aid to Bangladesh & Myanmar. 4) Boosting infrastructure growth. Combines in Sahel region. Advocate for multipolar world and its integration in its demand. Ways India can push IMF Reforms: - One country, one vote policy on lines of WTO. - Social & economic audit of debts should be undertaken. - Increase peer dependence & cooperation. - Strict policy formulation & prudence before loan disbursal. IMF reforms would pave way for a New World Order.
190 words1 paragraphs
Conclusion
IMF reforms would pave way for a New World Order.
10 words
Diagram
Diagram showing 'Ways India can push IMF Reforms' branching into points on WTO-style voting, social/economic audit, peer dependence & cooperation, strict policy formulation.
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Topper
Yashvi Jain
AIR 972025
Subject & Paper
GS2GS2
Topic
International Institutions, Agencies and Fora - Structure and Mandate
Important International Institutions
IMF and Debt Distress in Global South
Writing Stats
200
Total words
1
Paragraphs
analytical
Tone