Discussion
Apologies if it's already been covered, and if it seems a naive question, but articles in the broadsheets today seem to indicate that the IMF have access to funds of €3 TRILLION to help navigate out of the current financial crisis.
Given that the IMF is essentially made up most of the world's countries, where do they get all this money from? Can't we just dissolve the IMF and re-distribute these mountains of cash back to where it came from (ie us) so solving the crisis?
Go on; shoot me down, but I'm genuinely interested in why the IMF should have more money than most countries, if it's just sitting there waitng to solve a problem.
Given that the IMF is essentially made up most of the world's countries, where do they get all this money from? Can't we just dissolve the IMF and re-distribute these mountains of cash back to where it came from (ie us) so solving the crisis?
Go on; shoot me down, but I'm genuinely interested in why the IMF should have more money than most countries, if it's just sitting there waitng to solve a problem.
http://www.imf.org/external/
"Lending
"In the event that member countries experience difficulties financing their balance of payments, the IMF is also a fund that can be tapped to facilitate recovery. A policy program supported by financing is designed by the national authorities in close cooperation with the IMF. Continued financial support is conditional on the effective implementation of this program."
In other words, you only get the money on condition you agree to what you're told and then do it. In other words, give up a bit of sovereignty - which some people get very excited about. Might as well just accept a bit of European federalisation instead.
"Lending
"In the event that member countries experience difficulties financing their balance of payments, the IMF is also a fund that can be tapped to facilitate recovery. A policy program supported by financing is designed by the national authorities in close cooperation with the IMF. Continued financial support is conditional on the effective implementation of this program."
In other words, you only get the money on condition you agree to what you're told and then do it. In other words, give up a bit of sovereignty - which some people get very excited about. Might as well just accept a bit of European federalisation instead.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff


