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International Monetary Fund(IMF) Video Lecture | UPSC Mains: International Relations
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FAQs on International Monetary Fund(IMF) Video Lecture - UPSC Mains: International Relations
| 1. What is the International Monetary Fund (IMF) and what is its role in the global economy? |  |
Ans. The International Monetary Fund (IMF) is an international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. It provides financial assistance, policy advice, and technical assistance to member countries facing economic challenges. The IMF also conducts surveillance of global economic developments and provides a forum for member countries to discuss and coordinate their policies.
| 2. How does the IMF provide financial assistance to member countries? | |
Ans. The IMF provides financial assistance to member countries through various lending programs. The most common type of assistance is provided through Stand-By Arrangements (SBA), which provide short-term financial support to countries facing balance of payments problems. The IMF also offers Extended Fund Facility (EFF) and Flexible Credit Line (FCL) arrangements for countries with medium to long-term financing needs. These programs come with specific policy conditions that the borrowing countries must meet to receive the funds.
| 3. How does the IMF promote economic stability and growth in member countries? | |
Ans. The IMF promotes economic stability and growth in member countries by providing policy advice and technical assistance to help countries implement sound economic policies. This includes advice on fiscal management, monetary policy, exchange rate policies, structural reforms, and addressing social and economic vulnerabilities. The IMF also conducts economic surveillance to assess the economic health of member countries and identify potential risks and vulnerabilities. By promoting sound economic policies and supporting countries in implementing them, the IMF aims to foster sustainable economic growth and stability.
| 4. How does the IMF contribute to reducing poverty in member countries? | |
Ans. The IMF contributes to reducing poverty in member countries by incorporating poverty reduction and social issues into its policy advice and lending programs. It encourages countries to implement policies that promote inclusive growth, improve social safety nets, and enhance access to basic services such as education and healthcare. The IMF also provides technical assistance and capacity development support to help countries design and implement poverty reduction strategies. Additionally, the IMF works in collaboration with other international organizations and stakeholders to address the social and economic challenges faced by member countries.
| 5. What is the role of the IMF in global economic governance? | |
Ans. The IMF plays a key role in global economic governance by providing a platform for member countries to discuss and coordinate their economic policies. It monitors global economic developments, assesses risks and vulnerabilities, and provides guidance on policy coordination to promote global financial stability. The IMF also represents its member countries in international forums, such as the G20, and advocates for policies that support sustainable and inclusive economic growth. Through its surveillance and policy advice, the IMF contributes to the stability and resilience of the global economy.
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Dec 21, 2024 Last updated |
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