At the other extreme is the view that if the IMF did not exist, it would have to be.
invented. It is regarded by its supporters as playing a constructive role as an international.
credit cooperative serving its universal membership with impartial macroeconomic policy.
advice, technical assistance and financing for countries encountering temporary balance.
of payments problems. At this end of the spectrum, the debate focuses on how to enlarge.
its role in the global economy in a variety of ways, for instance, as a genuine lender of.
last resort and as creator of international liquidity through its prototype SDR mechanism (Dollar and Svensson, 1998); as an authority in orderly debt negotiations between creditors, private and official, and their sovereign debtors (Williamson, 2000) ; as an international authority endowed with powers to declare a "standstill" on legal actions that private creditors might take to enforce their claims on sovereign debtors and finally, as an overseer of the international monetary system through the exercise of effective surveillance over the exchange rate policies of the major international currency countries.
This paper, however, tries to look at the role of the IMF in the evolving global financial system from the perspective of developing country interests outlining some necessary reforms the IMF should undergo for better serving its purpose, especially with regard to the developing nations. .
In recent decades, many countries have participated in loan programs of the.
International Monetary Fund. In fact, almost all developing countries have received IMF.
financial support at least once since 1970. The few exceptions include Botswana, Iraq,.
Malaysia, and Kuwait. Given the broad reach of IMF loan programs, it is important to know the consequences of these programs for economic growth and other dimensions of economic.
performance. Do countries benefit from access to IMF loan programs or would countries.
