IMF is in the process of reforming itself and is trying to focus its operations on its core objectives mentioned in the mandate. This is an effort to make itself more acceptable and dispel the controversies surrounding it.

Argentina is hitting the headlines for all the wrong reasons. Wrong policies have plummeted a once surging Latin American country into disarray. Laid off workers, street protests and riots are the results of years of misjudged economic policies. Amongst all this is the cry for International Monetary Fund (IMF) to bailout Argentina and bring some economic order. Another crisis and another call for IMF.

The spotlight is back on IMF. Even before the bailout package is announced IMF seems to be in a tricky situation. The new Government in Argentina has already put off the much needed structural reforms of the provisional Government's finances, a commitment made by the previous Government to the IMF as a condition of its loan agreement. This despite Argentina needing the IMF loan desperately. This change in attitude of the Argentine Government is not the only reality in which IMF operates. There is growing disappointment that the fund offered little public support for the Government's economic plan. IMF is also conscious that the finger of blame is being pointed at it for failing to prevent the crisis in Argentina. It provided financial assistance to Argentina as recently as August last year. Critics ask why it did not urge for more radical reforms in Argentina. But things are not as simple as they sound. IMF is always in a dilemma in such crises. If it helps a country whose policies are insufficient it risks failing on its duty towards people who underwrite its resources and if it withholds support it risks driving the target economy into a deeper slump. These are just few of the sticky decisions, which IMF has to take.

With the core mandate of international monetary compensation, IMF seems to have diverged to become a specialist in bailouts. But how do the countries view these bailouts? What effect does this have on the respective economies? Bailouts not showing the expected results and repeated bailouts of the same economies have raised more doubts as to the effectiveness of these packages.

IMF : On the reform path, Argentina, investors, economic, Government, policies, crisis, financial, foreign, Mexican, speculators, international, Mexico, profits, public, tricky, workers.