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Unformatted text preview: or International Monetary and Financial Committee Development Committee Criticisms The IMF is dominated by the G8 (especially the U.S. Treasury) The Group of Eight (G8) consists of Canada, France, Germany, Italy, Japan, United Kingdom, U.S., and Russia. U.S. has the largest quota (17.6%) G8 account for approximately 50% of total quota. Criticisms (cont'd) IMFsupported programs impose austerity on countries in financial crisis Classical IMF recipe, with tight fiscal and monetary policies rather than customized technical assistance IMF is no more responsible for recent crises than is the fireman for the fire Criticisms (cont'd) The IMF encourages developing countries to reduce trade barriers when industrial countries don't. The availability of IMF lending encourages "moral hazard". Criticisms (cont'd) Programs supported by the IMF constrain spending on priority sectors, like education and health, by "imposing" fiscal deficit limits....
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- Spring '10