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IMF

IMF Committee Description 

Description: The phrase “Tax the rich” has gradually amassed popularity with Democrats and left-wing party members such as Joe Biden and Bernie Sanders advocating for a tax on high-net-worth individuals. However, the economic disparities in countries like the US and UK aren’t nearly as severe as South & Southeast Asian countries. India for instance, more than 40% of the wealth created in the country from
 
2012 to 2021 had gone to just 1% of the population while only 3% had trickled down to the bottom 50%. As the IMF’s goals involve achieving sustainable growth and prosperity, it’s of utmost importance to address these disparities and work on resolving them to reduce economic instability and prevent financial crises.

Description: One of the IMF’s foremost aims is to promote sustainable economic growth. As economies wax and wane through periods of recessions and booms, there’s a great reliance on borrowing, especially from organisations like the IMF. Particularly, South American countries like Argentina, Ecuador and Colombia have ended up being the IMF’s greatest debtors with a cumulative outstanding debt of over 52 billion dollars. Public borrowing is needed for a variety of reasons but excessive borrowing can lead to vicious cycles of debt that lead to its myriad of problems from financial instability to poor economic growth. By enforcing stricter and more critical borrowing policies, it would ensure that economies are more sustainable.