School of Transnational Law Plays Host to IMF Senior Official
datetime:2016-03-30 11:14:39
       Bombard any common man with a question about the IMF and they will be quick to respond with words like lending, financial aid, debt crisis, etc. But how many of us are actually aware of the intricacies of the International Monetary Fund and the significant role it plays in transforming economies across continents? Wouldn’t you be surprised if I told you that IMF aid cannot be used for defense funding by a member nation? Or that the money it distributes among member nations does not physically exist in reality? Peking University Shenzhen Graduate School got an opportunity to glean such facts and more about the International Monetary Fund (IMF) when the School of Transnational Law recently played host to Mr. David Vannier from the office of the Managing Director of the IMF.

       Mr. Vannier, who works closely with the IMF Chief, Ms. Christine Lagarde, is intimately familiar with the operations of the IMF.  He interspersed wit and wisdom to enlighten the audience on why the Bretton Woods Institute does what it does and how it goes about achieving mutually beneficial financial goals. He elucidated in simple words the unique structure of the organization and elaborated on the broad array of assistance it offers to member nations. The IMF’s contribution in transforming the world from bipolarity to multi-polarity cannot be overlooked. In this regard, Mr. Vannier described the plethora of assistance the IMF offers its member nations and how it seamlessly mandates membership with an interplay of liberal and the distinct regulatory conditions it sets.

       Unlike a lot of other external financial aids, the IMF not only strives to not make the poor population poorer, it also focuses solely on macroeconomic challenges like for instance, inhibiting the negative impact of a famine if such kind of dire circumstances arise in a member nation. Mr. Vannier cited how a couple of countries managed to wipe out two decades of debts in just 2 weeks after their accession to the IMF. It was interesting to know that no two loans offered by the IMF are identical and that almost all of its reserves typically belong to the countries themselves.

       Like they say, there are two sides to every coin; the IMF has had its fair share of controversies too. Mr. Vannier concluded the session with a candid discussion on what entails the criticisms that the IMF faces in some regions. He ascertained that that IMF believes in coordinating rather than dictating and in following a policy like this, disagreements are bound to arise.

       An extremely enriching session, it was indeed a great opportunity to interact with Mr. Vannier and get to know how the IMF actively responds to the changing economic activities globally.

Reported by Gayathri Jagannathan