The International Monetary Fund has decided to give an aid to Greece. Greece, a country that forms a part of the 16 nations Euro-zone is under very debts with paucity of funds to repay those debts. Thus the Euro zone nations have decided to pay a 110 billion Euros($147 billion). But just a minute, a surprising news is that IMF too is going to give a share in this "debt-crisis fund". This is a question of debate as the "article of association" of IMF says that it is an organization that deals only to provide funds to developing nations to undertake various development-oriented projects & schemes.
It also deals & provides aid only in "balance of payment" whereas Greece's problem is a fiscal problem(i.e. incorrect fiscal policies). Here, its as such quite surprising for IMF to lend aid to Greece.
India can surely raise concerns here & question the validity of such a move. The reason for India to raise a concern is that the IMF has funds given by the developing nations too, thus utilizing it for an advanced economy's problem may not be a long-term solution. Still, lets hope it doesn't affect IMF's aids to India & other developing nation.
NOTE: Views here reflect the inputs as published by a leading Economist & a columnist of a daily Eng. newspaper.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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