Which of the following is an argument put forth by critics of the IMF?

QUESTION

Which of the following is an argument put forth by critics of the IMF?

A. It increases barriers to the free flow of goods and investment across national borders.

B. It provides assistance only to developing nations and completely ignores the developed nations.

C. It is not powerful enough to ensure that the nation-states adhere to the rules laid down in trade treaties.

D. It promotes the rise of communism across the globe.

E. It usurps the sovereignty of nation-states by telling governments what economic policies they must adopt.

ANSWER

E
IMF loans come with strings attached. In return for loans, the IMF requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth. These requirements have sparked controversy. Some critics maintain that by telling national governments what economic policies they must adopt, the IMF is usurping the sovereignty of nation-states.