A CRITICAL REVIEW OF IMF PROGRAMS IN THE CARIBBEAN:
THE CASE OF JAMAICA
TABLE OF CONTENTS:
INTRODUCTION …………………………………………………………………………
LITERATURE REVIEW ………………………………………………………………….
BACKGROUND OF JAMAICA …………………………………………………………..
REVIEW OF POLICIES IN FORM- JAMAICA ………………………………………….
DEVALUATION OF THE CURRENCY………………………………………………….
CONCLUSION ……………………………………………………………………………..
INTRODUCTION
The International Monetary Fund (IMF) was formed after the Great Depression in the 1930’s when there was a need to have an organization to implement a stable exchange rate. In view of the fact that the weight of money that was used, gold, was no longer utilized and there was confusion about the value of paper money, some countries took advantage of this and cheated others in trade. Also, some countries’ economies were greatly affected as a result of World War II. Therefore, there was a need for reconstruction of key areas in the well-developed nations and a need for development for developing nations.
As a result, proposals were implemented at the Bretton Woods Conference; Dexter White (U.S.A) and John Keynes (U.K) suggested these proposals. This conference was held in New Hampshire on July 1944, with forty-four (44) delegates representing their respective nation. This is where the final negotiations of the IMF were implemented. Among these proposals were suggestions to value each country’s currency, to eradicate and manage certain practices on trade and to assist countries with reconstruction after World War II. The IMF’s intention was to monitor and to help maintain pegged adjustable exchange rates, primarily between the industrialized countries of Western Europe & the USA.
The IMF is mainly concerned with the stability of the exchange rates, balance of payments and managing the development of international trade. There is a membership base of 185 countries that share economic policies to facilitate trade. The IMF maintains international monetary...