The IMF’s Credit Policy — Assistance to the Needy or a Tool of Enslavement?

Abstract

The paper discusses examples of lending by the International Monetary Fund in three countries with different degrees of economic development. The subject of the paper is not the loan itself, but the fact that in order to receive it, the IMF puts forward a number of conditions designed to ensure the stability of the economy, but in fact repeatedly criticized for the opposite, negative result. The impact of the IMF loan on the economy, therefore, becomes very ambiguous and requires a closer analysis. Macroeconomic analysis allows us to determine the specific effects of the crisis and IMF reforms on the economy, while the world-system analysis based on these data reveals the position of certain countries in the international division of labor. The aim of the work was to identify the impact of loans provided by the International Monetary Fund on the economies of countries. Based on the results of the analysis, it became possible to determine the role of the International Monetary Fund in the international economy and identify diffi culties in achieving its global goals. Thus, the IMF’s activities only allow preserving the existing world order without leading to rapid growth of the economies of the borrowing countries. In this regard, taking into account all current global trends, the authors believe that attention should be paid to the development of other international institutions that will allow in the medium and long term to fulfill the goals laid down in the charter of the International Monetary Fund.