Global Political Economy

Global Political Economy
Student’s Name
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Global Political Economy
The global political economy remains an important topic considering the impacts that policies, in that construct, can have on the operational stability of each nation. In the context of the global political economy, prospects such as international finance, international trade, economic development, and the impacts of such prospects on the socio-political stability of the world are assessed. Nations play individual and collective roles in ensuring the management of the global political economy. Besides the inputs of the nations, there are independent institutions that have played a significant role in steering global political and economic trends, especially in the period after the war. Primary among such institutions is the International Monetary Fund (IMF). The IMF stays at the center of global prospects such as reducing poverty around the world, promoting high employment and sustainable economic growth, facilitating international trade, securing financial stability, and fostering global monetary cooperation. Combined, the above roles of IMF steer global political trends. In this paper, emphasis is put on assessing how the roles of IMF in the global political economy have changed over the past four decades and the impacts of such changes on the primary mandates of the institution. Assessing the evolution of the IMF and its impacts in the global political economy triggers insight into understanding the direction the world is taking in key political and economic prospects such as trade, financial stability, efficient political integration, and economic developments.
The International Monetary Fund (IMF)
The IMF is an intergovernmental pillar founded to support the structure of the world’s financial and economic order. IMF was formed in 1944 and came into formal existence in 1945, with 29 countries becoming its key members. Since its formation, IMF has grown to have 190 members. Additionally, 150 nationalities are represented by staff at IMF (IMF, 2021). The organization has 24 executive directors who represent the 190 member states. As it is constituted presently, the IMF can lend its member countries up to $1 trillion (Krueger, 2006). There are 29 lending arrangements currently to execute that order. It is also worth remarking that low-income countries can borrow money from IMF at a 0% interest rate. The IMF keeps influencing economic and political activities with the mandate that it is accorded in the global platform.
There are specific roles of the IMF that have defined its evolution since the 1970s. Primary among such roles is surveillance. IMF is mandated to prevent crises and maintain stability in the international monetary system. To execute such a role, the institution is allowed to monitor the policies that member countries have implemented. The institution further monitors the regional and global economic and financial models through its surveillance systems (IMF, 2021). Within that capacity as an independent monitor of financial and economic policies and activities, IMF can promote policies aimed at enhancing the living standards of some people, reducing vulnerability to financial and economic crises, an...