ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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SOVIET UNION-Nationalist Challenge

today emerged as the major financier of the world bilaterally as well as through multilateral agencies like the IMF and World Bank. Of course, there is also the additional factor that has operated particularly over the past decade or so since Ronald Reagan came to power in the US and declared openly his preference for bilateral economic arrangements as opposed to working through multilateral institutions, no matter how much control the US exercised over their decision-making. It is this factor which has come in the way of meeting the genuine needs of the Fund and World Bank over the recent past. While it is true that, thanks to the turmoil in east Europe and the revival of interest in the west in bailing out the east European countries economically, some people have advocated the involvement of the Fund and Bank, it should not to be overlooked that both in Europe as well as in the US much greater interest is being shown in working out arrangements outside the Fund/Bank framework. The EEC proposal for a $ 20 billion fund falls into this category So as and when the IMF's Interim Committee does meet, it is unlikely that quota increases would be substantially above the 35 per cent proposed by the US. But by then many more claimants will have been enlisted, wanting to avail themselves of the facilities offered by the Fund. In the end, developing countries may be no better off.

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