International Monetary Fund Flashcards
2015 Millennium Development Goals
Success
Number of people living on less than $1.25 a day reduced from 1.9 billion to 836 million.
Global number of deaths under the age of 5 reduced from 12.7 million to 6 million.
Access to clean water doubled.
13 million people received anti-retoviral treatment
2015 Millennium Development Goals
Failure
Sub-Saharan Africa did not meet the MDG for extreme poverty reduction target and is still 12.5% behind.
250 million in SSA faced water shortages.
Found in 2015 women were more likely than men to live in poverty - 24% earned less than men
What is the International Monetary Fund?
an international organisation that addresses financial crises and tries to promote economic growth
What are its aims?
Stabilise Economies
Prevent Financial Crises
Improve living standards
How many members?
189
What are its three tasks?
Surveillance
Lending
Capacity Building
How is it funded?
Payments from member states equating to voter power
What did the SAPs transfer to?
Poverty Reduction Strategies
Pakistan and the IMF
SAP required them to increase the amount of tax the government received as in 2009 it was estimated 3.2 million people who owned multiple properties did not register to pay tax.
Privatise national airline and 67 other companies.
Pakistan Outcome
IMF tax revenue collection in 2016 still below potential.
Pakistan received new loans despite not making progress on privatisation
Greece and the IMF
SAP requirement of reducing spending on government wages and welfare benefits - costing 17.5% of GDP.
Greece and the IMF
2016 voted to approve reforms.
Pensions have been cut and are estimated to be worth 25-55% less than beginning of the debt crisis.
Strengths
Helps reduce the likelihood of economic recession
Prevents spread of crises
Encourages economic reform
Weaknesses
Infringes upon state sovereignty
SAPs do not benefit the poorest
Failed to predict prior global crises
