Explain why the Debt Crisis and the Role of the IMF in It Undermined the Ability of LDCs to Provide Merit Goods such as Health and Education

The International Monetary Fund is (IMF) is the international organization entrusted with overseeing the global financial system by monitoring exchange rates and balance of payments, as well as offering technical and financial assistance when asked. However, the loans are given on a conditional basis. In order to receive the loan, the country has to accept certain conditions the IMF lays down. IMF lending is usually accompanied by strict and painful conditions such as structural adjustment. The IMF follows the monetarist policy and so its prime goal is to reduce inflation. …