TITLE:
IMF POLICY INVOLVEMENT IN THE DEVELOPING COUNTRIES

International Monetary Fund’s (IMF) Policy Involvement in the Developing Countries

Mohd Hafiz Bin Mohd Hussin
Kolej Poly Tech MARA
Malaysia

ABSTRACT
During the last two decades, the focus of IMF involvement in the developing world, and especially in the low income countries, has shifted. IMF involvement became more long term, but also oriented toward policy reform, rather only assisting with a macroeconomic crisis. This paper explores the deficiencies in IMF policy prescription and implementation in the developing countries. The information was collected using a library research where books, journals, articles and online resources were used. The paper further clarifies reasons behind the failure of structural adjustment programs and the danger of neo liberal based economic policies imposed on low-income countries. The research concludes IMF’s enormous financial and political power should be used in the betterment of people in the developing nations.

CONTENTS

1. Title page…………………………………………………………………………….…1 2. Abstract…………………………………………………………………………………2 3. Content………………………………………………………………………………….3 4. Introduction……………………………………………………………………………..4-5 5. Argumentation………………………………………………………………………….6-9 6.1. Mismanaged lending and debt crisis in the developing countries………….6 6.2. Counter argument and Refutation………………………………………………7-8 6.3. Violation of Islamic economic principles……………………………………….9 6. Conclusion……………………………………………………………………………..10-11 7. References…………………………………………………………………………….12-13

4. Introduction

Capitalism has been international in scope since the man went out to discover the world 500 years ago. Since then, this economic system has gained the confidence of people and rose upon suppressing other