Friday, 13 November 2015

Evaluation of the Effect of International Monetary Fund (IMF) Loan Policy on Developing Economy


PROJECT PROPOSAL
TOPIC: Evaluation of the Effect of International Monetary Fund (IMF) Loan Policy on Developing Economy.

INTRODUCTION
Loans from the International Monetary Fund (IMF) largely come with policy change conditions attached – conditions that the IMF has played a significant role in developing. Criticisms of the excessive burden and politically sensitive nature of these conditions led to significant reviews at the IMF and the introduction of some conditionality-free facilities, although these are limited in scope. The IMF claims to have limited its conditions to critical reforms agreed by recipient governments. However, the worrying findings of this research suggest that the IMF is going backwards – increasing the number of structural conditions that mandate policy changes per loan, and remaining heavily engaged in highly sensitive and political policy areas.

CHAPTER ONE
STATEMENT OF THE PROBLEM
The rise of IMF lending and crisis mediation since the early 1980s reflects, in large part, the development of dysfunctional relationship between lenders and borrowers in international finance. Referring the relationship requires that moral hazard be reduced and that crises prevention and management be more effective. The IMFs new initiatives to deal with crises, however are likely to be ineffective. An approval based on greater reliance on two-party negotiation holds more promise in stabilizing the international financial system than current approach, in which the IMF too often becomes a burdensome third party.

OBJECTIVES OF STUDY
It is obvious that economic problems of developing nations have consistently defied solutions. This research work will focus attention on the evaluation of the effect of international monetary fund (IMF) loan policy on developing economy. To achieve this, the following objectives will be pursued.
                               i.            To assess the various IMF loan policies
                             ii.            To examine the impact of IMF loan policies on developing nations
                          iii.            To analyze the challenges faced by developing nation in accessing and paying back IMF loans.
                          iv.            To appraise recommendation to be adopted by IMF and developing nation to reduce the adverse effect of the various loan policies.

RESEARCH QUESTIONS
To achieve the objectives of this study the researcher tries to find out solution to the following research questions.
                               i.            What are the IMF loan policies?
                             ii.            Has the IMF loan policies any adverse effects on the economy of developing nations?
                          iii.            Has the implementation of IMF loan any adverse effect on the economy of developing nations?
                          iv.            What is the variation of the IMF loan policy from developed nations and the developing ones?
                             v.            What is your assessment of the impact of IMF loan policies on developing nations?

RESEARCH HYPOTHESIS
H0: IMF loan policy has negatively impacted on the economy of developing nations
H1: IMF loan policy has positively impacted on the economy of developing nations
SCOPE OF THE STUDY
This study covers the evaluation of IMF loan policies on developing nations. This is a wide area to cover, but as a result of limited time and resources the researcher deem it fit to reduce the scope of the study to Nigeria alone since the condition of Nigeria economy and the impact of IMF loan policies is the same with other developing nations of the world.
CHAPTER TWO
Literature review
Conceptual frame work
Empirical framework
Theoretical frame work
Organization and structure of fund  
International monetary fund (IMF) debate in Nigeria
An approval of international monetary fund (IMF) loan in Nigeria.
Functions of IMF
Problems faced by IMF
Conditionality of IMF loan
Contributions of the IMF
Areas of coverage / limitations/ constraints / challenges
Summary of chapter two
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter extensively deals with the methods and instruments used for gathering of data in respect of this research work, and the technique adopted in analysing the data.

RESEARCH DESIGN
Considering the nature of the topic under consideration, the type of design of the study adopted is survey design.
SOURCES OF DATA
Data used for the purpose of this research work were gathered from both primary and secondary sources.
METHOD OF DATA COLLECTION
For the purpose of this research work, a structured or closed ended questionnaire was used.

POPULATION SIZE
The population of the study was made up of all the staff from the three selected financial institution in Nasarawa. These financial institution are UBA, ECO Bank and Nasarawa Micro Finance Bank

SAMPLE PROCEDURE AND SAMPLING TECHNIQUES
The technique used for selecting respondents for this study was the random sampling techniques. Forty (40) out of the entire population of the staff were selected from the three financial institutions. This technique was chosen to avoid bias in order to ensure fair selection.

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