International Monetary Fund Essay

The question â€Å"To what extent has the International Monetary Fund contributed in revamping the Nigerian economy since the 1980’s?† is a question that helps us to evaluate the true impact of international monetary policy.   In order to further understand the meaning of this question, this paper will examine the following subjects – 1) the meaning of the question, 2) the significance of the question for International Relations scholars, 3) how the question relates to other published work in the area, and 4) what methods would be employed to answer the question. First of all, the question is directly focused on economic impacts.   However, the question is not simply a matter of metrics, because the question is directed at procedural changes as well.   The question is focused on the restructuring of the Nigerian economy.   To only use economic metrics would fail to address the consequences restructuring entails.   When the IMF releases money to a country, they stipulate conditions that the country must meet. Therefore, the question is also directed at the matching the directives of the IMF with the implementation within Nigeria.   The question is not asking if the IMF has had a positive or negative impact on Nigeria, so value judgments can be left aside.   However, there are several hidden economic impacts.   Structural changes to the workforce, changes in occupations, and new roles within the economy are all more difficult to measure, but can be considered a result of economic policy.    Therefore, the question means 1) what are the economic stipulations of the IMF from the 1980’s until now, 2) has the Nigerian government met the requirements of the IMF, 3) what restructuring has occurred within the Nigerian economy as a result of the IMF, 4) what economic measures can be attributed to these changes, and 5) what are the indirect economic impacts of the IMF policies. International relations scholars are interested in this question because the answers yield important data on the impacts of policy.   International relations scholars are often consulted on questions of policy.   It is therefore in their best interest to know the impacts of policies made in the past.   In this regard, they are historians.   First of all, it is critically important for International Relations scholars to understand what the IMF has attempted to revamp within the Nigerian economy by tracing the stipulations as they were made. Additionally, the scholar can look at the Nigerian government’s ability to meet the demands of the IMF.   How well were they able to integrate the changes required by the IMF.   Were there consequences that required new policies in the future?   In tracing these policy changes, the scholar can also piece their own picture together of what the IMF did well (what was effective), and what changes needed to be made in direction in order to achieve effectiveness.   They can also have a unique insight into the culture and politics of Nigeria, as well as the internal culture and politics of the IMF. At this point, the International Relations scholar can also know what economic measures are affected by differing types of policies and requirements.   Additionally, they can make recommendations on what types of correlations can be found between initiative and their impact.   Perhaps some of the most valuable information for International Relations scholars, however, is related to the indirect impact of the IMF’s policies. When looking at the restructuring of the Nigerian economy, the International Relations scholar is able to examine the changes within the population, how people moved around, the changes in families, etc.   This type of information allows for a more comprehensive picture of economic change and the effects policy can have on cultural change.   Also, this may highlight the challenges represented by a more powerful entity interacting with a less powerful entity on a global scale. There has been much written about Nigeria since the 1980’s.   There are environmental reports, malnutrition reports, and economic reports.   However, these all approach Nigeria from a different perspective than the direction of this question.   This question seeks to directly explore the impact of IMF policies and economic aid on the revamping of the Nigerian economy.   As such, this question seeks to provide supporting information of the changes in Nigeria.   It seeks to trace change related to IMF policies alone.    It is impossible to completely know what current conditions in Nigeria are caused solely or even primarily by the IMF policies, however by focusing on the IMF, widespread impacts can be evaluated from IMF policies.   It is taking the infusion of money and change of monetary policy as the starting point and looking for the economic aspects affected.   One of the main sources for research on these types of development programs is found with the World Bank.   A particularly useful document is â€Å"The Evolution of Poverty and Welfare in Nigeria, 1982 – 1992.†[1]Using this document and also information from the IMF, the scholar can tie together the policies of the IMF and the effects. In order to study such a complex issues, a rigorous approach will need to be taken.   It is the most difficult to know the indirect impacts of the IMF’s economic policies.   It is undesirable to claim that changes were a result of IMF policy, if in fact, they owed their existence to a governmental or environmental change.   However, the economy is so closely entwined with all aspects of life, the implications of the IMF policies will be seen to have far-reaching consequences. Therefore, we can begin by examining the Nigerian economy and economic statistics in 1980, and comparing them with the present day to get snapshots of the economic health of Nigeria at these two points in time.   These snapshots, however, encompass other economic influences other than the IMF programs.   Then the specific policies of the IMF and their objectives are compared to the resulting economic changes to see if the stated goals have been achieved via metrics. Also involved in this analysis is the ability of the Nigerian government to implement the changes required by the IMF.  Ã‚   This area of analysis is perhaps the easiest, as the initiatives of the IMF are easily available.   However, information on the implementation and the implementation’s challenges may be more difficult to find.   Looking at a timeline of IMF policies, one can also deduce what was effective or not effective.   If a policy was ineffective, then in a later cycle we should find a correction or an abandonment of the program. The internal structure of the government and economy can also be viewed.   The way that money flows and what directions can be measured.   It is important to see structural change since the 1980’s.   The Nigerian government worked with the IMF to develop the National Economic and Empowerment Development Strategy in 2004.[2]   This document reviews previous policy and also lays the groundwork for future work between the IMF and the Nigerian government. This report focuses on structural changes – highlighting the importance of revamping the Nigerian economy. Additionally, looking at the basic economic unit – the household – can show structural changes ass well.   By looking at these structural changes, the real question about revamping the economy can be answered.   Of course, this type of analysis also looks at the indirect effects of economic change.   These are difficult to measure, but by tracing newspaper stories and major events in Nigeria, it may be possible to trace events back to economic policy decisions. Overall, the question of the effectiveness of the IMF’s policies to restructure the Nigerian economy is a very important question with implications for future policy consideration and also a deeper understanding of the past. Now that the world is becoming smaller and national boundaries are being crossed with money and policy, it is more important than ever to understand the impact of economic policy.   Additionally, with the prevalence of capitalism and modernization, the effects of economic policy on third world nations must have a thorough understanding. Reference List International Monetary Fund, The Nigerian Economic Reform Program, IMF, 2005, retrieved 10 January 2007    World Bank, The Evolution of Poverty and Welfare in Nigeria, 1985-92, World Bank, 1997, retrieved 10 November, 2007, < http://www4.worldbank.org/afr/poverty/databank/DocNav/default.cfm> [1] World Bank, The Evolution of Poverty and Welfare in Nigeria, 1985-92, World Bank, 1997, retrieved 10 November, 2007, < http://www4.worldbank.org/afr/poverty/databank/DocNav/default.cfm> [2] International Monetary Fund, The Nigerian Economic Reform Program, IMF, 2005, retrieved 10 January 2007