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Answer and Explanation: Countries having large control tends to vote in a manner which is favorable to them. This often leads to biasness in decision making which is more detrimental to low-income countries which includes unfavorable loan terms and other restrictions which comes attached with it.
The World Bank Group works with developing countries to reduce poverty and increase shared prosperity, while the International Monetary Fund serves to stabilize the international monetary system and acts as a monitor of the worlds currencies.
The IMF assists member nations in several different capacities. Provides Loans to Member Nations. Its most important function is its ability to provide loans to member nations in need of a bailout. Fills Deficit Gaps. Technical Support and Assistance. Too Much or Too Little Intervention.
The IMF provides capacity development, which is technical assistance and training of government officials to help member countries strengthen economic institutions and statistics, as well as capacities in areas such as taxation and administration, expenditure management, monetary and exchange rate policies, financial
Limitations of an IMF bailout Harsh austerity measures: IMF programs often require countries to implement strict economic policies, which can be unpopular and difficult to implement. Limited resources: The IMF has limited resources, which can limit the amount of assistance it can provide to countries in need.
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Benefits of Membership Access to information on economic policies of all member countries. Opportunity to influence members economic policies. Access to technical assistance in banking, fiscal affairs, and exchange matters. Financial support in times of payment difficulties. Increased opportunity for trade and investment.
At issue is whether IMF lending increases the risks in the international financial system. By minimizing the moral hazard problem, the IMF avoids recognizing that it is part of the problem. Its behavior encourages too much short-term lending by financial institutions and too few losses on risky loans.
The IMF provides broad support to low-income countries through policy advice, capacity-building activities, and concessional financial support meaning it is provided at below-market interest rates. Concessional support through the Poverty Reduction and Growth Trust (PRGT) is currently interest free.

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