The role of the International monetary fund (IMF) in helping poor and debt-troubled countries - Essay Example

Consequently, the institution offers advice on investments in the public sector. The IMF supports United Nations policies on development. A good illustration can be derived from the fact that IMF is primarily concerned in financing services that raise public welfare such as education and health. IMF finances various aspects of the economies of debt ridden countries to achieve general Equilibrium. Stability of the economy benefits civilian populace both economically and socially. Moreover, stability in the economy enhances security and sound governance.

If IMF intervention does not stabilize the economy, a crisis is imminent, which often yield to violence in poor countries. Such conditions are evident in African countries. IMF is a financial institution obliged to offer development loans to countries. However, countries must fulfill asset of condition before their application can be granted. The eligibility conditions or criteria are several. The first condition is that the IMF should have a direct link to the program that is being rolled out with its money.

The condition is aimed at enhancing accountability and control of the economic direction by the IMF. Consequently, the condition acts as security for the MF funds by avoiding misallocation or squandering by government officials. Second, the project that is supposed to be financed must be stated clearly, with the requirements. This information can be found on the IMF factsheet. In addition, the government must accompany the information with the reasons that caused of the problem and the efforts that are being made to ensure that the situation is resolved in the future.

The factors that led the government to request funds from the IMF must have a proposed solution in the loan application details. The IMF can approve the proposal, reject them or offer alternative policies that can achieve similar or better results (IMF). In cases where the economic policies of the