... along with World Bank (part of Bretton Woods), IMF has been successfully lending money to mainly developing counties so that they could pay the interest on the already outstanding debts to commercial banks and ironically the IMF itself. In response, the commercial banks increased the loans, in confidence that the indebted countries will pay back by getting into more debt with IMF. As the indebted countries got into even more debt, the IMF's 'right' was to intervene into their economies, making structural adjustments with the purpose of actually helping to repay debts. Tragically, very often the effects on the economies have been devastating. 'Ill' economies have been treated with IMF's 3-step help1 and very often made even more ill, by IMF's technical assistance policies. Generally, the countries are required to: * Reduce inflation * Reduction of Imports * Increase of Exports * Restrict flows of capital and goods * Liberalise Trade * Privatise government enterprises * ...

See this essay or coursework document in full right now