The Global Economy Assignment 2022

Running head: THE GLOBAL ECONOMY
The Global Economy
Name of the Student
Name of the University
Author note

THE GLOBAL ECONOMY1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................4
References........................................................................................................................................6

THE GLOBAL ECONOMY2
Introduction
One of the largest international organization that aims to solve the financial crisis around
the world is known as International Monetary Fund (IMF), which established in 1945. The total
number of member countries of is 189 and headquarter of the organization is situated in
Washington, D.C (Imf.org 2020). The activities of the organization has been criticized by many
and called IMF a promoter of neoliberal agenda. The concept of the neoliberalism is associated
with the free market capitalism and laissez-faire economic liberalism. Therefore, this paper taken
into account the historical development of the IMF to assess the role of the IMF as a neoliberal
promoter.
Discussion
The main purpose of the IMF include facilitating international trade, promoting
international monetary co-operation, securing financial stability, reducing poverty, promoting
high employment and encouraging sustainable economic growth across the world (Farnsworth
and Irving 2018). In addition, the organization is dependent on the World Bank in order to obtain
resources for the development work. Thus, the role of the IMF is indispensable in restructuring
the international payment system. It helps to control the difficulties in international financial
crises and balance of payment of the countries around the world. The activities of the IMF is
questioned as it is based on neoliberal regime. Hence, it can said that the policies suggested by
the IMF is based on economic liberalization, which increases the influence of the deregulation,
free trade, privatization, austerity and globalization. As a result, it supports the idea of inducing
influence of the private sector in the society and economy by reducing government spending.