Is there a legitimacy of IMF duties and did IMF fulfill its promises Essay

Is there a legitimacy of IMF duties and did IMF fulfill its promises - Essay Example The fund was also charged with the responsibility of availing its resources to member states facing hardships in their balance of payments, and lessening as well as shortening the degree of imbalance in the global balance of payments to its member states (Soros, 2002: pp 116). The IMF has contributed to positive change in numerous member countries since its establishment. At its inception, it undertook the daunting task of restoring economic growth and stability, especially after the world war, and the aftermath of the great global depression. The IMF adopted a simple working principle that all countries share some fundamental economic goals; that include achievement of high income and employment levels, and that countries can achieve these goals by adopting solid macroeconomic policies, collaborating to make international monetary systems work efficiently and making their economies accessible to trade (Camdessus, 1998). It has not been easy for IMF since the global economy has had its successes and challenges, especially during the fund's initial years. For all the countries that adopted the IMF principles, their employment rates rose, their national incomes grew, and their trade expanded immensely, ushering in almost fifty years of global prosperity. The global economy is much more com... Also, there are now various exchange rate arrangements which have replaced the initial fixed exchange rate system, with IMF member states increasing from just forty in 1947 to 182 currently (Camdessus, 1998). During these developments, the fund has also had to change and develop itself in order to remain relevant and address the changing needs and demands. The fund now temporarily provides and advices members undergoing wide ranging circumstances and problems. The fund has also expanded its scope to incorporate other elements contributing to stability in the financial systems and economic growth. The fund now advocates for its members deregulating their domestic economies to boost private sector activities. Moreover, it has called for the member governments to reduce unfruitful government spending, spend more on basic human needs, ensure accountability in corporate and government affairs and a more efficient dialogue on economic policies with the civil society and labor (Camdessus, 1998). The IMF has helped its members in dealing with various problems and issues that were not anticipated at the institution's establishment. For instance, the fund helped in creating a mechanism to recycle the surpluses of oil exporters and helped in financing oil-related deficits in some countries during the 1970s energy crisis. In the 1980s, the fund helped the Latin American countries in overcoming a debt crisis (Camdessus, 1998). In 1989, IMF helped in designing and financing substantial global efforts required to help the 26 transition countries of Eastern Europe and the former USSR to abandon the legacy of centralized planning. Between 1994 and 1995, IMF helped Mexico out