The Future of Financial Support for Developing Countries: Regional and Islamic Monetary Funds

Khalid Zaman

MPRA Paper from University Library of Munich, Germany

Abstract: The study analyses the strengths, weaknesses, opportunities, and threats (SWOT) of establishing regional and Islamic monetary funds as alternatives to the International Monetary Fund (IMF). The study considers this proposal's merits, flaws, prospects, and dangers and sheds light on the project's viability. Potential autonomy is strength of regional and Islamic monetary funds. Without outside interference, these funds may be better able to respond to their respective areas' specific requirements and cultural norms by implementing innovative financial strategies. Further, nations needing these resources would have more say over their economic and fiscal strategies, protecting them from potential IMF interference. On the other hand, the analysis reveals several severe flaws in this proposal. The capacity to give extensive aid and technical support may be constrained because regional and Islamic monetary funds lack the IMF's resources and competence. The IMF can help nations worldwide, whereas these funds probably cannot. The research finds that despite these difficulties, establishing regional and Islamic monetary funds presents great prospects for collaboration and integration among nations. This can strengthen cooperation in the face of shared economic problems and foster peace in the area. The research also shows where this project can be vulnerable to failure. Regional and Islamic monetary facilities risk losing their legitimacy and independence if they succumb to political interference, financial difficulties, or opposition from established organizations like the International Monetary Fund. Finally, the SWOT analysis gives an in-depth look at the opportunities and threats associated with creating regional and Islamic monetary funds as IMF substitutes. While certain advantages to using a hedge fund, such as autonomy, adaptability, and management, some severe constraints and risks should be considered. The results of this research give essential information on the viability of this plan, which policymakers and interested parties can use to make informed decisions.

Keywords: International monetary fund; Regional monetary fund; Islamic monetary fund; SWOT analysis (search for similar items in EconPapers)
JEL-codes: A11 F01 (search for similar items in EconPapers)
Date: 2023-01-03, Revised 2023-02-05
New Economics Papers: this item is included in nep-isf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published in Politica 1.1(2023): pp. 1-8

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