COOPERATION WITH THE IMF: THE IMPACT ON THE ECONOMIC GROWTH OF THE COUNTRIES OF THE WORLD AND UKRAINE

Abstract

The global economic system requires greater coordination and coherence in order not to provoke international financial and economic crises. Therefore, to minimize financial and economic crises, such a powerful center as the IMF functions. In general, the IMF is based on the neoliberal North Atlantic market values; it creates the conditions for cooperation between stakeholders and protects its legitimacy in the long term, increasing its effectiveness. Not all countries can cooperate productively with the IMF; there is sometimes a decline in the rate of economic growth and the intensification of crisis phenomena in their economies (Somalia – 1981; Kenya – 1990s; Indonesia, Malaysia and Thailand – 1997 Argentina – 2001, and others). However, there are positive examples of world-wide cooperation with the IMF: Peru – 1956, Mexico – 1956, 1982 and 1994, Portugal – 2011–2014, Cambodia – 1992, Brazil – 2015–2016, Poland – 2009–2011, Greece and Cyprus – 2009–2010, etc. Cooperation with the IMF is always a definite indicator of the reforms and confidence of Western investors in countries with which the IMF cooperates. Cooperation with the IMF is always a definite indicator of reforms and confidence of Western investors in countries with which the IMF cooperates: if such values prevail in the country, and government institutions are formed fully and impartially (market environment, rule of law, antitrust constraints, infrastructure availability, etc.), then there is the possibility of mutually beneficial cooperation. Without this, cooperation will be ineffective and will not always lead to economic growth. Cooperation with the IMF for Ukraine as of 2015–2020 is important, given the need to ensure financial and economic stability. Such cooperation makes it possible to reduce the interest on servicing and the frequency of entering the international commercial loan markets. However, if cooperation with the IMF is not continued, then the risks of increasing debt burden on the budget, the destabilization of exchange rate policy and, as a consequence, crisis phenomena in Ukraine’s economy will increase. This leads to the intensification of systemic changes and reforms that will allow Ukraine to achieve successful results in cooperation with the IMF.