This website uses cookies to ensure you have the best experience. Learn more

The Function And Governance Of Imf Lending Policies In Malawi

1537 words - 7 pages

The Function and Governance of IMF Lending Policies in Malawi
The International Monetary Fund was established at the United Nations Conference held in Bretton Woods, New Hampshire, United States in July, 1994. The IMF's goal is to build a framework of cooperation between nations into hasten up post-war reconstruction, to aid political stability, and to encourage peace (Lele 154).
The IMF membership is at 188 countries. According to the organizational structure, each participant country in the organization is allocated a quota according to its contribution to IMF reserves. The IMF performs economic survey of its members in order to provide technical assistance and training to its member ...view middle of the document...

Facilitating technical assistance ensures that vital expertise is provided in the event of lack of capacity, and this means well-crafted economic policies and programs.
National governments encountering financial difficulties with balancing their finances are given a respite with IMF loans. IMF provides the member countries with options to offset their budgetary deficits by working together and forming policy programs supported by financing. These credit agreements between the IMF and member countries are dependent on pre-contracted terms and conditions. Loan access is dependent on the country’s quota in the organization but recently, the IMF lending policies were reformed to allow low-income countries to access double of their previous loan limits while concurrently reducing interest rates. This was done to strengthen the organization’s lending capacity to avert crises especially in the aftermath of the recent global economic crisis.
IMF has introduced policies during the 2008 financial crisis for granting loans to countries. These policies require that the applicant country should first reduce fiscal deficits and inflation levels, ensure that international reserves are shielded from depletion, minimize public spending through decrease of expenditure and increase of taxation, hike interest rates and minimize increase of money supply, prevent currency devaluation and provide financial sector liquidity as required.
Malawi is ranked as one of the world’s lowest per capita economies according to a study conducted by United Nations Development Program (UNDP 2006). More than 80% of the population in Malawi lives in the rural areas of which 65.3% live in poverty, (Malawi National Economic Council 2000).
Malawi’s Economy before 1960 was mainly commodity based and laid great emphasis on goods with the potential to be exported such as agricultural produce including tea, tobacco, coffee, as well as cotton. These crops were grown by only a select few who could afford expensive inputs required while the poor were practicing noncommercial crop production. The colonial government imposed the new farming technologies on the poor indigenous farmers with disregard to the appropriateness of the practices, and this led to growing poverty among the local farmers (Moyo 202).
At the dawn of independence in 1964, Malawi began investing in food production to ensure self-reliance in terms of having enough food for the farmer as well as for the entire nation. In order to attain this goal, the government-subsidized agricultural inputs and increased availability of essential farming implements. This greatly improved the living standard of the common citizen, but the only problem was that these crops did not generate adequate returns and poverty still remained a major economic obstacle.
To help alleviate the country’s poverty and to improve the economy, Malawi adopted Structural Adjustments Policies (SAPs) in 1986 as a condition to loans given by the IMF. These SAPs...

Other Papers Like The Function and Governance of Imf Lending Policies in Malawi

The Benefits and Disadvantages of the Imf and the World Bank

1215 words - 5 pages benefits of the institutions to the member states and the disadvantages of their policies and operations before concluding the discussion. The International Monetary Fund (IMF) and the World were formed shortly before the end of the World War II in 1944 at the Bretton Woods conference. The IMF was formed to promote international economic cooperation and provide its members with short term loans to enable trade with other counties. This role has

Function and Importance of Communication in Management

872 words - 4 pages organization, They directly result into stoppage of production and loss of time and indirectly create ill-will and low morale among the employees and affect productivity and production. 3 Basis of managerial functions Communication is helpful to the management in discharging various functions, which are as follows :- (a) Anticipation :The most important function of the management is to anticipate the future of their products and prospects in

The Role and Function of Law

844 words - 4 pages terrorists who had obtained student visas through a flight school. Our industry went from being lightly regulated to being subjected to heavy oversight. Most significantly, all schools which provide F-1 student visas are compelled to use a government database, called SEVIS, which links school administrative mainframe systems with the Department of Homeland Security and the Department of Immigration in real time. The role and function of

Roles And Function Of The Law

727 words - 3 pages authorized the use of authority by agencies of the executive branch and other government agencies. As far as the Commerce Clause is concerned it plays a major role in how states regulate trade with themselves and foreign nations. The Commerce Clause essentially gives Congress the power to regulate commerce. This plays a huge role within the function of law for both society and business. This causes people who are traveling across states lines

The Role and Function of Law

763 words - 4 pages The Role and Function of Law Law plays of significant role in the operation of a successful business and society. One of the characteristics of law is that is “creates duties, obligations, and rights that reflect accepted views of a given society” (Melvin, 2011, pg. 4). Law also helps businesses resolve disputes that have to do with the rights of the business and citizens (Melvin, 2011, pg. 4). Obtaining an understanding of the legal system

Lending Institutions, Healthcare and Human Capital in Algeria

1390 words - 6 pages Lending Institutions, Healthcare and Human Capital in Algeria Lending Institutions, Healthcare and Human Capital in Algeria The central bank gives the system its overall consistency and provides resources to other bodies. In addition, laws and regulations underpinning bank supervision may not be formally deficient. However, the extensive state ownership of banks severely undermines regulatory governance (IMF, 2004). Many uncertainties also

Customer Relationship and Corporate Governance in Sustainability of Business

2666 words - 11 pages necessary policies and customer intensive initiatives which help in the sustainability of any business. Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or

Role of Ict in the Governance of Higher Education

3069 words - 13 pages GOVERNANCE AND QUALITY ASSURANCE Role of ICT in the governance of higher education Mrs. Shankarisankar, M.A.,MPHIL.,M.ED.,MPHIL., HDCA., DMTT ASSISTANT PROFESSOR SRM SCHOOL OF TEACHER EDUCATION AND RESEARCH SRM UNIVERSITY Abstract The increasing use of information and communication technologies (ICTs) has brought changes to teaching and learning at all levels of higher education systems (HES). Across the past twenty years the use of ICT

Peer-to-Peer Lending in the United States

2041 words - 9 pages 同行对同行贷款在美国 (Peer-to-Peer Lending in the United States) | 摘要 (Abstract) 互联网已经彻底改变了我们思考,生活的方式,并互相交流;这种进步还可以扩展到我们如何做生意。消费者和生产者的传统模式已永远地改变或取代有更好的东西,而在本文中,我们探讨这样一个例子:点对点点对点贷款。The Internet has revolutionized the way we think, live, and interact with each other; this progress can also be extended to how we do business. Traditional models of consumer and producer have been forever changed or supplanted with something better, and in this paper, we

The Function Of Different Settings In A Doll's House And Twelfth Night

821 words - 4 pages The Function of Different Settings in A Doll's House and Twelfth Night The setting comparison and deliberation in this essay is between Henric Ibsen's "A Doll's House" and William Shakespeare's "Twelfth Night". "A Doll's House" deals with the social life and duty, the woman's proper place and role within the family and the society. "Twelfth Night" is about illusion, deception, disguises, madness, and the extraordinary things that

The Portrayal and Function of Courtly Romance Convention in Chaucer`S Canterbury Tales

1910 words - 8 pages and faithful or beautiful and faithless. The Knight allows her to decide. The old woman is delighted to have won ‘sovereignty’ over her husband and rewards him by becoming faithful and beautiful all the time. The Knight’s Tale describes how two kinsmen Arcite and Palamon fall in love with the same woman named Emily, whom they first see out of their prison window. Emily is the niece of King Theseus. Arcite gains his freedom but is banished

Related Essays

Hiv And Aids In Malawi Essay

2270 words - 10 pages HIV and AIDS in Malawi Interdisciplinary Perspective on HIV March 22, 2012 Out of a population of 15.4 million, almost one million people in Malawi are living with HIV. AIDS is the leading cause of death amongst adults in Malawi, and is a major factor in the country’s low life expectancy of just 54.2 years. The Malawian government has mounted an impressive, comprehensive response to the AIDS epidemic in recent years. The government and

Imf & Ibrd Main Function And How They Do Things

2328 words - 10 pages foundations for sustainable economic growth. Recent history shows that countries that pursue the right policies, operating in a growing world economy, and with the right support, can achieve rapid economic growth and reduce poverty. An enhanced partnership between World Bank (IBRD) and the IMF is essential to the success of this effort. The global economic crisis has highlighted just how interconnected countries have become in today’s world economy

Unethical Mortgage Lending And The Collapse Of The American Economy

1494 words - 6 pages Shawn Mutchler Clara Gerl Comp I 01 September 2013 Unethical Mortgage Lending and the Collapse of the American Economy Living in an era of economic uncertainty is an abysmal proposition that many of us thought improbable. However, we find ourselves in the midst of the worst financial quagmire since the Great Depression of the 1920’s. Across the United States, businesses are down-sizing and even closing the doors of peripheral branches. In

Problems Of Nation Building In Malawi

986 words - 4 pages . Malawi was not even a one-party state, it was a one-man state, a political autocracy in which the state apparatus was answerable to only one man.Until as recently as 1989, Western donor governments were comfortable with Banda's strict, paternalist, Protestant style, his cultural conservatism and his friendliness towards the West - when it still counted. Because of his pro-Western policies, Banda's regime got off rather lightly. But in the post