Outline five objectives of each of the following: (a) International Monetary Fund (IMF). (b) European Economic Community (EEC).

Answer Details

(a) Five objectives of the International Monetary Fund (IMF)

1. To promote international monetary cooperation among member countries through a permanent institution for consultation on monetary matters.
2. To promote exchange-rate stability and orderly exchange arrangements, and to avoid competitive devaluation of currencies.
3. To assist in establishing a multilateral system of payments and to remove foreign-exchange restrictions that hamper world trade.
4. To provide short-term financial assistance (loans) to member countries facing temporary balance-of-payments difficulties, so as to correct the imbalance without harmful measures.
5. To promote the balanced growth of international trade, and thereby high levels of employment, income and development in member states.

(b) Five objectives of the European Economic Community (EEC)

1. To create a common market (customs union) with free movement of goods, services, capital and labour among member states.
2. To abolish tariffs and trade restrictions among members while operating a common external tariff against non-members.
3. To promote balanced economic growth and a higher standard of living among the peoples of member countries.
4. To harmonise economic, agricultural, transport and monetary policies of member states (e.g. the Common Agricultural Policy).
5. To foster closer economic and political unity and cooperation among the member nations of Europe.