Question

Does the globalization of the world's economy which includes the globalization of the monetary system by way of the IMF improve or harm the world's economies?

Answer 1

Globalization: is the integration of countries, its economic matters, the people or society, ideas, policies, goods and services, etc. we can also say it is the process of changing the whole world with different countries into one state or village which helps in bringing the nations and its people together.

So, here we are talking about the globalization of the monetary systems of the nations economies all over the world through IMF(International Monetary Fund) i.e the organisation that deals with the financial matters of the world and to safegaurd the international financial system and assist to enjoy the benefits while minimizing the risk of globalization.

And if we talk about the effects of the same whether it would harm or improve the economies, then it is surely going to improve the condition or state of world economies and we can see the various benefits of the same in the following by the way of IMF:

IMF provides the trancperency of information among the nations as a means to reduce money laundering and fraud, and ensure a level playing field for all investors., it is strengthening the economic governance by promoting the use of common economic standards and policies for sound economic and financial management and corporate governance, it not only listens to the member governments but also looks at the civil society needs and values and safety and lays a moral foundation for collective growth and upliftment of the whole world and economies of all nations through the way of globalization.

IMF believes that economic growth is the only way to improve living standards in developing countries, and that this is best achieved through globalization, while minimizing the associated risks. It tries to cut down the negative effects of globalization on the world economy in two ways:

1) By ensuring the stability of the international financial system 2) By helping individual countries to take the advantage of the investment opportunities offered by international capital markets, while reducing their vulnerability to adverse shocks or changes in investor sentiment.

IMF also believes that globalization is the vehicle for sustained reduction in poverty and the rich countries should help the poor countries by offering stronger financial support in the form of investment, official development assistance, debt relief and open the private market for the competitive advantage.

Hence, We can confirm that Globalization is the boon to the world economies and IMF is the playing the role of a supporting vehicle for the same. And it will surely improve the conditions of the economies worldwide.