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How the Imf Impacted the Caribbean Business Environment

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THE UNIVERSITY OF THE WEST INDIES
(CAVE HILL) CAMPUS
FACULTY OF SOCIAL SCIENCES
DEPARTMENT OF ECONOMICS
FINA3010 – SUPERVISED RESEARCH PROJECT
How Has The International Monetary Fund Impacted the Caribbean Business Environment?

Student Name: William Franklyn April 1st, 2014 ID#:407002804 Professor: Mr. Wilberne Persuad
Contents
Introduction: 3 Literature Review: 4 Background: 4 Further look at the IMF: 4 The World Bank: 5 Loans facilities offered by the IMF: 5 Definition of Caribbean Business Environment (The Small Open Economy Model): 6 Characteristics of the Caribbean Business Environment: 6 Definition of a Financial Crisis: 7 What causes a Financial Crisis to occur? 8 Conclusion: 9 Descriptive analysis 10 Methodology 15 Conclusion 16 Social Instability: 16 Further look at the impact of the IMF’s procedures/objectives: 16 Potential Threat 17 Policy Responses: 18 Internally: 18 Externally: 18 Bibliography: 20

Introduction: This research paper aims to analyze the process of The International Monetary Fund in Barbados and how the country was affected by their guidelines. Barbados has been said to be one of the developing countries within the Caribbean Business Environment. However due to external shocks as well as weak domestic policies, Barbados was forced to ask the IMF for their aid as a last option, to stabilize the country’s economy. This research paper intends to highlight that the significance of The IMF as well as the impact as it relates to small open economies. There will be a literature review informing all of the relevant information pertaining to the general subject topic. Afterwards, a case study will be presented on Barbados and our findings. Once all the information has been disclosed, a conclusion will be given with regards to the IMF and

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