The IMF and the third world

Noting the current uneasy state of relations between developing countries (LDCs) and the International Monetary Fund (IMF), this Briefing Paper reviews the chief points at issue. The paper notes that the Fund can provide 'scapegoat services' to governments who know that unpopular measures are inevitable and are delighted to be able to attribute the blame to the machinations of international bankers and their paymasters. Nevertheless, there are also genuine disagreements over policy between the Fund and LDC governments. The paper argues that there remains truth in the charge that the Fund is used by rich countries to increase their power over poor ones.