Can IMF improve the world's economy?

International Monetary Foundation (IMF) was built to help the membership countries to get out of economical crisis, increase the employment and decline the poverty. Usually, the IMF will provide financial assistance to the countries who experience the financial difficult and need borrow money too solve the problems. The money comes from the 187 member countries for the foundation to help member countries that need help. The country that needs help should provide the information of the difficulties and need to borrow money.

As a person or a company, when we want to do business, we have to get enough capital to invest to purchase material and hire people to work. If the money is not enough, we can borrow from bank or other friends. However, if a countries lack of money to develop its economy and deal with poverty, where could it borrow money? The answer is the World Bank, IMF and other unions. IMF is important for the development of the countries, which face the financial crisis; the loan could help the country continue to run rescue plan and improve the economy. The member countries can benefit from this foundation when he deposits a mount of money in the IMF. Although the World Bank can provide the support, IMF is important to work together with the World Bank.

Think about the recent Greece debt crisis, if no one such as European union and IMF borrow money for it to deal with financial problem, how it would be? Bankruptcy? If that, the country will have security problem and impact on the world’s safety.

However, when the country borrows money from IMF, in have to meet the requirement, such as increase the tax and decrease the government spend, and increase the interest rates to stabilize the currency. When the economy is weak, this requirement may hurt the economy rather than to help it. Government usually cut the spends on the health care and the input to health care, food and other public investment, finally cause the decline of the economy. To solve this problem, the IMF should make the different requirements depend on the countries’ situation, because even the financial crisis from different countries is different.