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

International Monetary Fund is one of Bretton wood institute created for purpose of lending to countries facing balance of payment crisis. Role IMF in the development of developing countries: 1) Lending to countries to overcome temporary balance of payment crisis. EG: 1991 lending to India. 2) Reforms: IMF mandates reforms under Washington Consensus for overcoming balance of payment crisis. Market Driven approach: IMF promotes market economy, Reduction of taxes, deregulation of currency. 3) Bailout package of IMF for Srilankan Ka. 4) Reponth: IMF publishes various reports on economic situation in countries. EG: would stability report. Criticism of IMF: 1) Controlled by Western powers. World bank by USA, IMF by Europe. 2) Excessive quota of USA giving virtual veto. 3) Tied funding: Funding tied to reforms to benefit Western east market economies. 4) No end use Monetary. Funding time to Pakistan.

Bailout package of IMF for Srilankan Ka. 4) Reponth: IMF publishes various reports on economic situation in countries. EG: would stability report. Criticism of IMF: 1) Controlled by Western powers. World bank by USA, IMF by Europe. 2) Excessive quota of USA giving virtual veto. 3) Tied funding: Funding tied to reforms to benefit Western east market economies. 4) No end use Monetary. Funding time to Pakistan. Measures: BRICS contingency arrangement, Reduce USA voting power, Monitor Countries performing, Conditional not all funding. In current scenario when countries facing debt sustainability issues, IMF reforms are required.