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The International Monetary Fund and the Developing Countries: A Critical Evaluation

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  • Sebastian Edwards

Abstract

The purpose of this paper is to critically evaluate the IMF's role in the developing countries' adjustment process. In particular, the paper tries to answer the following questions: What model or framework does the IMF use to generate its advice, and is that advice eclectic? Is there evidence that countries that followed the IMF's advice do better than countries that proceed in other ways? Are the policy decisions of the Fund based on technical knowledge or do they reflect the political views of the larger members? Is the IMF position regarding the debt crisis conducive to a realistic solution? What can we expect from the Fund in the future? The paper also includes an evaluation of recent IMF programs, as well as an econometric analysis of the contractionary devaluation issue.

Suggested Citation

  • Sebastian Edwards, 1989. "The International Monetary Fund and the Developing Countries: A Critical Evaluation," NBER Working Papers 2909, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2909
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    1. Stock, James H & Watson, Mark W, 1988. "Variable Trends in Economic Time Series," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 147-174, Summer.
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    3. Edward, Sebastian, 1986. "Are Devaluations Contractionary?," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 501-508, August.
    4. Mohsin S. Khan & Peter J. Montiel, 1987. "Real Exchange Rate Dynamics in a Small, Primary-Exporting Country," IMF Staff Papers, Palgrave Macmillan, vol. 34(4), pages 681-710, December.
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    6. Saul Lizondo, Jose, 1987. "Unification of dual exchange markets," Journal of International Economics, Elsevier, vol. 22(1-2), pages 57-77, February.
    7. Buira, Ariel, 1983. "IMF financial programs and conditionality," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 111-136.
    8. Thorvaldur Gylfason & Michael Schmid, 1983. "Does Devaluation Cause Stagflation?," Canadian Journal of Economics, Canadian Economics Association, vol. 16(4), pages 641-654, November.
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