Influence Of International Economic Instiutions On National Economic Policies

Syed Faraz Mehadi, Jamia Millia Islamia

ABSTRACT

International economic institutions wield considerable influence over national economic policies, yet the extent and mechanisms of this influence remain a topic of ongoing debate and scrutiny. This study examines the impact of international economic institutions, such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO), on the formulation and implementation of national economic policies. Drawing on a comprehensive review of existing literature, as well as case studies from various regions and countries, the study seeks to elucidate the ways in which these institutions shape national economic agendas.

The research employs a multidisciplinary approach, integrating insights from economics, political science, and international relations to analyse the complex interplay between international economic institutions and domestic policy-making processes. Special attention is paid to the role of conditionality – the conditions attached to financial assistance provided by international institutions – in influencing national policy choices. Additionally, the study explores the role of power dynamics, ideology, and institutional design in shaping the influence of international economic institutions.

The findings of the study have important implications for both policymakers and scholars. By enhancing our understanding of the mechanisms through which international economic institutions influence national economic policies, the study aims to contribute to more informed and effective policy- making at both the national and international levels. Ultimately, the study seeks to contribute to a more nuanced and comprehensive understanding of the role of international economic institutions in shaping the global economic order.