Globalization and its Discontents paper Essay Example | Topics and Well Written Essays - 750 words

Globalization and its Discontents paper - Essay Example The policies devised by them are a result of prolonged discussions between the economists. The policies that have been devised by the International Monetary Fund have helped many countries to overcome the problem of financial crisis. In order to avoid a financial drought the country has to avoid all sorts of financial problems that may come up. The country has to control the flow of money internally otherwise the financial crisis cannot be avoided (IMF). If the international capital flow is not maintained properly, economic stability in a country cannot be achieved. The price in the country cannot be stabilized and hence the financial policies designed to overcome the crisis cannot be implemented properly. This shows that if a country has to prosper in terms of finance and economics it has to improve its structure internally and then ask for help from the outside sources. Hence if a country is in the developing stage and is not practicing its economic policies properly, the Internati onal Monetary Fund also cannot be of much help. One example of such a country is Botswana which improved itself internally and prospered than any other country in Africa. When Botswana got independence it was suffering from a severe financial crisis. And it was of utmost importance to address the issue properly. Botswana was rich of agriculture and diamonds but lacked the resources to make use of both these assets. The assets in the country did not prove to be lethal for them as they were used in the right way. This was quite beneficial for the country to achieve stable economy. The political leaders of Botswana believed in national integrity and worked towards the betterment of the state. And thus Botswana did not approach the International Monetary Funds for any kind of aid. But they received advices and suggestions from the outsiders who belonged to public or private institutions. These advisories helped in devising a future plan for the country. They laid out plans which involved the whole structure of the country and not only one department. The advisors selected by the state were properly interviewed and then hired. This showed that the state w as being controlled properly and each and every individual in the state had the spirit to move the country towards prosperity. For e.g. the deputy governor who was referred to by the IMF was only hired by the state when he was interviewed. This clearly illustrated that the state was internally stable and was working towards the betterment of the state. The state of Botswana maintained a good relationship with the International Monetary Funds through out its history. The advisories of International Monetary Funds helped the state of Botswana in tackling the problems of economics in the state. And these advisories were highly honored by the state of Botswana. Botswana was not helped properly by the IMF when it faced the problem of liquidity. But this was because of the requirements of the IMF. An economic policy should be devised before asking for any financial help from the IMF. This generally is a correct way of handling the situation as the IMF provides support so that the state ca n prosper further. However even then the state of Botswana was strong enough to pass through these problems. The reserves which the state of Botswana had from the income generated from its natural assets