Question

What is International Monetary Fund (IMF)? Is it based on democratic provisions?

Answer 1

(i) International Monetary Fund (IMF) is one of the biggest moneylenders for any country in the world. But it is not based on democratic provisions.
(ii) Its 173 member states do not have equal voting rights. The vote of each country is weighed by how much money it has contributed to the IMF.
(iii) Nearly half of the voting power in the IMF is in the hands of only seven countries - US, Japan, France, UK, Saudi Arabia, China and Russia.
(iv) The remaining 166 countries have very little say in how these international organizations take decisions.