The role of IMF in the Asia financial crisis
It has been nearly 25 years since the crisis occurred in East Asian countries but the role of IMF in this crisis is still a controversial topic. There were many conflicting opinions about the solution of the IMF to help countries in crisis. But one can not deny that the timely assistance of the IMF has helped countries in East Asia out of crisis and develop more powerful
General about IMF.
IMF International Monetary Fund is an international organization of financial and monetary in which contributing countries’ governments are the members. In 7/1944 at Bretton Woods, New Hampshire, USA took the final negotiations on the establishment of the International Monetary Fund between 44 countries. Since 3.1.1947, the IMF has formally gone into operation as a specialized agency of the United Nations. At that time, the IMF had 49 country members. The IMF headquarter is located in Washington DC and its two branches are in Paris and Geneva. Since 1945, the number of IMF members has come to more than 180 members.
When establishing IMF, countries tending to respond to the unresolved financial problems created a crisis in the 30s. Therefore, IMF has become the world – wide doctor specializing in treatment of ulcers in the economic system. Country members must report any change to the IMF about their financial and economic policies in order to avoid affecting the economy of country members. Besides, they had to implement policies related to financial and economic advice of the IMF to fit the needs of all the country members. In order to support countries to follow this principle, the IMF loans money to countries which are financially troubled. So there’s no surprise when the IMF intervened rather roughly in the economy of a country in need of its support money. In summary, the IMF's goal was to maintain stability which, in their opinion, comes after order. Meanwhile, if they wanted to restore order from...