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The Future of Financial Support for Developing Countries: Regional and Islamic Monetary Funds

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  • Zaman, Khalid

Abstract

The study analyses the strengths, weaknesses, opportunities, and threats (SWOT) of establishing regional and Islamic monetary funds as alternatives to the International Monetary Fund (IMF). The study considers this proposal's merits, flaws, prospects, and dangers and sheds light on the project's viability. Potential autonomy is strength of regional and Islamic monetary funds. Without outside interference, these funds may be better able to respond to their respective areas' specific requirements and cultural norms by implementing innovative financial strategies. Further, nations needing these resources would have more say over their economic and fiscal strategies, protecting them from potential IMF interference. On the other hand, the analysis reveals several severe flaws in this proposal. The capacity to give extensive aid and technical support may be constrained because regional and Islamic monetary funds lack the IMF's resources and competence. The IMF can help nations worldwide, whereas these funds probably cannot. The research finds that despite these difficulties, establishing regional and Islamic monetary funds presents great prospects for collaboration and integration among nations. This can strengthen cooperation in the face of shared economic problems and foster peace in the area. The research also shows where this project can be vulnerable to failure. Regional and Islamic monetary facilities risk losing their legitimacy and independence if they succumb to political interference, financial difficulties, or opposition from established organizations like the International Monetary Fund. Finally, the SWOT analysis gives an in-depth look at the opportunities and threats associated with creating regional and Islamic monetary funds as IMF substitutes. While certain advantages to using a hedge fund, such as autonomy, adaptability, and management, some severe constraints and risks should be considered. The results of this research give essential information on the viability of this plan, which policymakers and interested parties can use to make informed decisions.

Suggested Citation

  • Zaman, Khalid, 2023. "The Future of Financial Support for Developing Countries: Regional and Islamic Monetary Funds," MPRA Paper 116264, University Library of Munich, Germany, revised 05 Feb 2023.
    • Handle: RePEc:pra:mprapa:116264
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    References listed on IDEAS

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    2. Enrique G. Mendoza, 2023. "Monetary Policy Frameworks in Latin America: Evolution, Resilience and Future Challenges: A Discussion," World Scientific Book Chapters, in: Claudio Borio & Edward S Robinson & Hyun Song Shin (ed.), MACRO-FINANCIAL STABILITY POLICY IN A GLOBALISED WORLD: LESSONS FROM INTERNATIONAL EXPERIENCE Selected Papers from the Asian Monetary Policy Forum 202, chapter 27, pages 575-582, World Scientific Publishing Co. Pte. Ltd..
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    4. Graham Bird & Dane Rowlands, 2006. "IMF quotas: Constructing an international organization using inferior building blocks," The Review of International Organizations, Springer, vol. 1(2), pages 153-171, June.
    5. Jan Wouters & Jed Odermatt, 2014. "Comparing the ‘Four Pillars’ of Global Economic Governance: A Critical Analysis of the Institutional Design of the FSB, IMF, World Bank, and WTO," Journal of International Economic Law, Oxford University Press, vol. 17(1), pages 49-76.
    6. Christopher Dick-Sagoe & Jorge Miguel Lopo Gonçalves Andraz, 2020. "Decentralization for improving the provision of public services in developing countries: A critical review," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1804036-180, January.
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    Cited by:

    1. Kien, Pham Van & Ou, Jenho Peter & Sadiq, Dr Muhammad & Nguyen, Tran Thai Ha & Huy, Pham Quang & Tran, Trung Kien, 2023. "What role financial inclusion, green trade and natural resources utilization play in ASEAN economic growth: Evidence from post COVID era," Resources Policy, Elsevier, vol. 85(PB).
    2. Tanweer, Syeda Zainab & Shah, Muhammad Saud & Nabi, Agha Ammad & Mukhi, Aftab Ali & Ahad, Muhammad, 2023. "Accelerating Growth: Unleashing the Power of Accelerator Programs as Strategic Investments for Startups in Pakistan," MPRA Paper 117474, University Library of Munich, Germany, revised 28 May 2023.
    3. Zaman, Khalid, 2023. "Navigating the Perils of a Banana Republic: Lessons from Pakistan's Economic Crisis," MPRA Paper 116713, University Library of Munich, Germany, revised 08 Mar 2023.
    4. Yu, Donglei & Wenhui, Xiong & Anser, Muhammad Khalid & Nassani, Abdelmohsen A. & Imran, Muhammad & Zaman, Khalid & Haffar, Mohamed, 2023. "Navigating the global mineral market: A study of resource wealth and the energy transition," Resources Policy, Elsevier, vol. 82(C).
    5. Sriyanto Sriyanto & Muhammad Imran & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & ?Dadang Yunus Lutfiansyach? & Parmono Parmono & Abdul Wahab Pathath & Mohd Khata Jabor, 2023. "Harnessing the Power of Globalization: A Study of the Association between Globalization, Transportation Energy, and Insurance and Financial Services in Europe and Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 453-461, March.
    6. Jiang, Wanxing & Gao, Han, 2023. "The nexus between natural resources and exports of goods and services in the OECD countries," Resources Policy, Elsevier, vol. 85(PA).

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    More about this item

    Keywords

    International monetary fund; Regional monetary fund; Islamic monetary fund; SWOT analysis;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • F01 - International Economics - - General - - - Global Outlook

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