Observation: Alternative Worse

Bergsten ‘98 – no IMF is worse

C Fred Bergsten, Peterson Institute, "The International Monetary Fund and the National Interests of the United States | PIIE" ,
February 24, 1998, https://www.piie.com/commentary/testimonies/international-monetary-fund-and-national-interests-
united-states
First, some believe the world would be better off without the IMF or any similar institution.
They would let the market take care of all crises on its own. As noted, the IMF promotes
market-oriented solutions and the United States strongly supports that approach. The problem,
however, is that markets occasionally go haywire and far overshoot the rational bounds of
underlying economic conditions. The results can be catastrophic for both the countries
involved and the world economy as a whole. For example, huge amounts of private capital
continued to pour into Mexico and the Asian countries until literally the eve of their crises-
despite impending signs of trouble and frequent warnings from many quarters. Then the
private capital flow totally reversed and drove the countries' currencies down much further
than can be justified by any objective analysis. This "roller coaster effect" of the private capital
markets was already seen in the runup to, and aftermath of, the Third World debt crisis of the
1970s. It demonstrates why we cannot rely wholly and solely on market forces. The United
States knows about these problems from direct experience. As recently as early 1995, the
foreign exchange markets drove the dollar to its all-time lows against the yen and most
European currencies despite the stellar performance of our economy and relative stagnation in
Japan and Europe. Our own Treasury, despite its strong preference for market solutions, felt
compelled to intervene to drive the dollar back up. Since that time, the dollar has risen by 60
percent against the yen and 40 percent against the DM-demonstrating again the "roller
coaster" or "bandwagon" effect, and revealing clearly that the dollar had fallen much too far
only three years ago. It would be enormously risky to rely solely on market forces to resolve
currency and other financial crises. As noted above, crisis countries would then be wholly on
their own and would inevitably have to accept much sharper recessions, much sharper
declines in their currencies, and/or draconian trade and capital controls. Such alternative
adjustment paths would hardly support US economic or broader interests. The archetypal
example was of course the competitive depreciations and trade warfare of the 1930s that
helped bring on the Great Depression-and that induced the world to create the IMF after World
War II in an effort to avoid ever repeating such a disaster.

C1: SDRs
Liao ‘21 – contextualization
Kristine Liao, Global Citizen, "Special Drawing Rights: What Are SDRs and How Can They Boost the Global COVID-19 Recovery?" ,
Feb 12, 2021, https://www.globalcitizen.org/en/content/what-are-special-drawing-rights/
The last time new Special Drawing Rights (SDRs) were issued was during the 2008-2009 financial crisis,
unlocking hundreds of billions of dollars to help countries around the world in a time of need. Below,
we break down what SDRs are, how they can boost the global economy, and whose support is needed
to tap into this crucial funding, which could be used for medical supplies, vaccines, food, and further
debt relief to prevent low-income countries from sliding deeper into poverty. Created by the
International Monetary Fund (IMF) in 1969, the SDR is a reserve asset that can be traded between
countries in exchange for liquidity, or cash. Each time the IMF decides to issue a new allocation of
SDRs, the organization is basically acting as an international central bank . The IMF distributes these
reserve assets to its 190 member countries in proportion to their IMF share and relative economic
standing in the world economy. So richer countries get more SDRs, while poorer countries receive
fewer.

Plant ‘20 – better than borrowing internationally

Mark Plant, CGDEV, "Making the IMF’s Special Drawing Rights Work for COVID-19 Economic Relief | Center For Global
Development", May 6,2020, https://www.cgdev.org/publication/making-imfs-special-drawing-rights-work-covid-19-economic-
relief
A new SDR allocation would allow countries running into foreign exchange reserves
difficulties to access hard currencies at a low interest rate—much lower than borrowing on
international markets. This added international liquidity injects grease into the international
financial system at a time when many of the gears are freezing up.

Ambrose ‘10 – no conditionality

Soren Ambrose, TWN Third World Network , "FRUITS OF THE CRISIS", Jan 2010,
https://archive.globalpolicy.org/images/pdfs/SocEcon/2010/TNW_full_reportpdf.pdf
They can also be converted into hard currency to be used as governments determine: in sharp
contrast to IMF loan financing, there are no conditions on SDRs. The cost of converting and
using SDRs is usually small. Indeed, for LICs, SDRs are probably the most convenient, least
expensive source of liquidity short of outright grants. Unlike most resources from donors and
lenders, the unconditioned funds derived from SDR conversions can be used for counter-
cyclical public spending that can help counter domestic recessions. 

Xafa ‘09 – prevents recession (08 example)

explains when the IMF launched a “general SDR allocation in early 2008, it helped the global
economy avoid a Great Depression.”
Miranda Xafa, "ROLE OF THE IMF IN THE GLOBAL FINANCIAL CRISIS", 2009,
file:///C:/Users/Recruiter/Downloads/30CatoJ475.pdf
To contain the fallout of the crisis on EMCs, officials at the G20 summit in London in April
2009 pledged to triple the Fund's lending resources to $750 billion and agreed to a general
SDR allocation of $250 billion. Armed with more resources, the Fund was quick to adapt its
lending policies in response to the crisis. A new instrument, the Flexible Credit Line (FCL) was
created to provide large, upfront financing on a precautionary basis and to better tailor
conditionality to country circumstances. Countries with solid fundamentals and strong policies
now have access to IMF financing on demand, with no conditionality, to address actual or
potential balance-of-payments pressures. Together with increased lending limits, the new
precautionary FCL provides insurance that helps strengthen market confidence about the
country's ability to meet rollover needs and thus avoid a crisis. Mexico was the first country to
benefit from the FCL in March 2009, with a $47 billion loan-the largest in the Fund's history-
followed by Colombia and Poland. With the difficult and uncertain outlook pointing to a
protracted global recession, the IMF's managing director called for global fiscal stimulus in
early 2008, thus helping the global economy avoid a Great Depression (IMF 2008b). Working
with the FSB, the Fund is in the process of refining the tools necessary to provide clear early
warnings to members about the risks of future crises. In line with their respective roles, the
Fund's macro-financial analysis incorporates information provided by the FSB on regulatory and
supervisory issues. The exercise is designed to detect underlying vulnerabilities, such as
excessive leverage, risk concentrations, credit growth, currency and maturity mismatches,
which could undermine financial stability (Ghosh, Ostry, and Tamirisa 2009). The objective is to
communicate these risks to policymakers sufficiently early and convincingly to prompt
corrective action that would help contain crisis risks. Typically these actions would consist of
prudential measures, such as higher capital requirements or limits on unhedged foreign-
exchange exposures, although tightening of macro policies might also be needed

IMF '21 – global covid recovery and vaccines

IMF, "IMF Executive Directors Discuss a New SDR Allocation of US$650 billion to Boost Reserves, Help Global Recovery from
COVID-19", 03-23-2021, https://www.imf.org/en/News/Articles/2021/03/23/pr2177-imf-execdir-discuss-new-sdr-allocation-
us-650b-boost-reserves-help-global-recovery-covid19
“I am very encouraged by initial discussions on a possible SDR allocation of US$650 billion. By
addressing the long-term global need for reserve assets, a new SDR allocation would benefit
all our member countries and support the global recovery from the COVID-19 crisis . It would
also be a powerful signal of the IMF membership’s determination to do everything possible to
overcome the worst recession since the Great Depression. “To this end, Executive Directors
conveyed broad support among Fund members for IMF staff to formulate a proposal for a new
SDR allocation equivalent to US$650 billion to provide additional liquidity to the global
economic system by supplementing the reserve assets of the Fund’s 190 member countries. “I
intend to present by June a formal proposal to the Executive Board to consider a new allocation
of US$650 billion, based on an assessment of IMF member countries’ long-term global reserve
needs, and consistent with the Articles of Agreement and the IMF’s mandate. IMF staff will
develop new measures to enhance transparency and accountability in the use of SDRs while
preserving the reserve asset characteristic of the SDR. In parallel, staff would also explore
options for members with strong financial positions to reallocate SDRs to support vulnerable
and low-income countries. “If approved, a new allocation of SDRs would add a substantial,
direct liquidity boost to countries, without adding to debt burdens. It would also free up
badly needed resources for member countries to help fight the pandemic, including to
support vaccination programs and other urgent measures. And it would complement the
range of tools deployed by the IMF to support our membership in this time of crisis.”

Blakeslee ‘21 – 10% or even double international reserves

Carol Hoban Blakeslee, Wall Street Journal , "There’s No Magic in How SDRs Help the Poor - WSJ", Feb 24, 2021,
https://www.wsj.com/articles/theres-no-magic-in-how-sdrs-help-the-poor-11614200026
No one is claiming that the SDR is perfect, but a rational judgment would begin by examining
what a new allocation would actually accomplish. First, it would provide liquidity to many
emerging and developing countries that today have severely limited access to external
financing but have the pressing need to pay for health and economic support. The
approximately $274 billion that would accrue to emerging and developing countries as their
share of an SDR 500 billion increase would represent a 10% boost to their international
reserves and, in some cases, double that amount

Eziakonwa ‘20 – SDRs → economic growth 

Ahunna Eziakonwa, Ahunna Eziakonwa, "How special drawing rights could help Africa recover from COVID-19", March 24, 2021,
https://www.brookings.edu/blog/africa-in-focus/2021/03/24/how-special-drawing-rights-could-help-africa-recover-from-covid-19/?
fbclid=IwAR1m5PLVu6GtXnzR0UXPanIL7i5UgxDnyDen2d4Fc7HKFALSszCbZme60_A 
In normal times, African countries would raise the funds to kick-start their economic recovery
by availing themselves of concessional finance, commercial borrowing, or increasing domestic
resource mobilization. In this global pandemic, though, these options are either unavailable or
inadequate. An increased allocation of SDRs could have a profound financial and
psychological effect across the African continent. In addition to strengthening reserves
positions, it will also build confidence among producers and investors, while revitalizing
economic growth. 

Fofack ‘21 – SDRs key to reverse COVID recession

Hippolyte Fofack, Newsweek, "Give Africa Unilateral Access to IMF's Special Drawing Rights | Opinion" , 2/26/21,
https://www.newsweek.com/give-africa-unilateral-access-imfs-special-drawing-rights-opinion-1572219
The daunting risks facing Africa and the rest of the world make the issuance of additional SDRs
even more urgent. Beyond providing a timely shot in the arm of the global economy's incipient
recovery, new SDRs will also help advance the implementation of the AfCFTA. This will involve
bolstering investment in infrastructure, including climate-resilient energy infrastructure and
broadband to help Africa leverage digital technologies to boost productivity growth and
participate proactively in the reordering of global supply chains post-COVI The issuance of new
SDRs will be a crucial piece in the global recovery puzzle. It will also, in conjunction with the
election of Ngozi Okonjo-Iweala as director general of the World Trade Organization, signal a
return to co-operative multilateralism. The robust and synchronized recovery required for the
world to return to pre-pandemic GDP levels will remain elusive in the absence of a strong and
well-coordinated international response. Africa and the world now look to President Biden to
unlock the SDR and strengthen the foundation of cross border co-operation.

UN ‘20 – poverty impact

concludes that “COVID-19 could push half a billion people into poverty in developing
countries.”
UN, United Nations, "COVID-19 Fallout Could Push Half a Billion People into Poverty in Developing Countries - United Nations University", 04-
08-2020, https://unu.edu/media-relations/releases/covid-19-fallout-could-push-half-a-billion-people-into-poverty-in-developing-countries.html
COVID-19 Fallout Could Push Half a Billion People into Poverty in Developing Countries. New
research published today by the UNU World Institute for Development Economics Research
(UNU-WIDER) warns that the economic fallout from the global pandemic could increase global
poverty by as much as half a billion people, or 8% of the total human population. This would be
the first time that poverty has increased globally in thirty years, since 1990.

Fl2 not about covid

David H Freedman, Newsweek, "New COVID Mutations Could Prolong Pandemic for Another Year, Despite Vaccines" ,
1/28/21, https://www.newsweek.com/new-covid-mutations-could-prolong-pandemic-another-year-despite-vaccines-1565229
If we don't get to herd immunity, or close to it, by late fall, we face the possibility of a significant third
wave of the pandemic. That's what happened in the influenza pandemic of 1918, which returned with a
vengeance in 1919 to kill millions more around the world. A century ago there were no vaccines for the
flu. But COVID-19 vaccines won't quell the current pandemic if we can't get it into enough people in time
to head off a new wave or a resistant variant.

The World Bank, "Pandemics Overview", https://www.worldbank.org/en/topic/pandemics

Pandemics, which are large disease outbreaks that affect several countries, pose major health, social, and
economic risks. A quick-moving pathogen spreading across the globe has the potential to kill tens of
millions of people, disrupt economies, and destabilize national security.

Azarrah Karrim, News 24, "The Big Picture | 'The loss of humanity': SA's, Global South’s battle for Covid-19 vaccine justice |
News24", Mar 11, 2021, https://www.news24.com/news24/opinions/fridaybriefing/the-big-picture-the-loss-of-humanity-sas-
global-souths-battle-for-covid-19-vaccine-justice-20210311
The reality is, however, that it would be in the best interests of richer countries to ensure "every country is
secure, safe and healthy, otherwise we will have another pandemic", according to Mokdad. "We should
not be selfish and buy a vaccine to take for ourselves and only ourselves. We're not alone here, we're so
interconnected" he added. The only way out of the pandemic is to reach global herd immunity, to stop the
virus in its tracks before it mutates to outmanoeuvre current vaccines. "If we did not learn this lesson
from Covid-19, when are we going to learn? It's very important for us to remember that we're in it
together. People in South Africa, if they are healthy, we in the US are healthy" "We benefit all around if
we pay attention. We need to help COVAX, we need to help poor countries, we need to provide the
[vaccine] knowhow nobody needs donations and aid, just level the playing field and I can compete with
you. That's all it takes," Mokdad said.
Andrea Shalal, Reuters, "New IMF reserves could fund vaccinations for low-, middle-income countries -report | Reuters" , April
6, 2021, https://www.reuters.com/article/us-imf-world-bank-africa/new-imf-reserves-could-fund-vaccinations-for-low-middle-
income-countries-report-idUSKBN2BT04I
WASHINGTON (Reuters) - Moves to bolster the IMF’s emergency reserves could provide the $44 billion
needed to vaccinate 70% of the population in lower- and middle-income countries by the end of 2022,
at no added cost to rich countries, a new Rockefeller Foundation report finds.
Katharine Gammon, Technology Review, "Why a failure to vaccinate the world will put us all at risk | MIT Technology
Review", February 13, 2021, https://www.technologyreview.com/2021/02/13/1018259/why-a-failure-to-vaccinate-the-world-
will-put-us-all-at-risk/
The motive for getting the vaccine to poorer countries more quickly is not just altruism: evolution will
punish any delays. SARS-CoV-2 has already mutated into several worrying new variants, and this process
will continue. If countries with large populations wait to be vaccinated for years, the virus will keep
mutating—potentially to the point that the first available vaccines lose effectiveness. That will be bad for
everyone, but poorer countries, with less access to updated vaccines, will again feel more of the impact.
“We get more mutants and they get more deaths,” says Bloom. Judd Walson, a global health researcher at
the University of Washington, worries more about the indirect effects of the pandemic in the developing
world, where in many places covid-19 doesn’t even rank in the top 20 causes of death. Health systems
have directed a lot of personnel and resources to dealing with the pandemic—setting up quarantine
centers, doing surveillance, and more. In addition, funders and ministries have been diverted away from
diarrhea, malaria, and other killers. As a result, those other programs are suffering: rates of immunization
for diseases such as measles, diphtheria, tetanus, and whooping cough are declining, both for lack of
supplies and personnel and because people fear going to health centers. “All those other things that are
killing people are being neglected, so not providing a covid vaccine stops governments from shifting back
to their priorities before the pandemic,” says Walson. And while virus variants can travel fast in a highly
connected world,

C2: Environment
Hawkins ‘20 – 80% subsidy rates
Hawkins 20 [Hawkins, Johns. 10-15-2020, “Some say neoliberals have destroyed the world, but now they want to save it. Is Scott Morrison
listening?” The Conversation, https://theconversation.com/some-say-neoliberals-have-destroyed-the-world-but-now-they-want-to- save-it-is-
scott-morrison-listening-148167]
The IMF’s proposed package involves the following tools: an 80% subsidy rate for renewable
energy production a 10-year green public investment program in renewable energy, low-
carbon transport and energy efficient buildings carbon pricing, calibrated to achieve an 80%
reduction in emissions by 2050, after accounting for emission reductions from the green fiscal
stimulus compensation for poor households whose purchasing power is dampened by a carbon
price. The IMF says the plan is “growth friendly”, especially in the short term. The policies are
designed to increase the price of fossil fuel energy relative to low-carbon energy, and reflect
the harm fossil fuels cause through air pollution and global warming. The IMF is not alone in its
thinking. Some 27 Nobel laureates in economics have endorsed a price on carbon. And recent
research has conclusively found carbon pricing lowers growth in greenhouse gas emissions.

IMF ‘21 – Encourages better climate policies

IMF ‘21 [IMF 21, 03-03-2021, “The IMF's Response to COVID-19, International Monetary Fund, https://www.imf.org/en/About/FAQ/imf-
response-to-covid-19]
Climate change is a fundamental risk to economic and financial stability. It is also an
opportunity to reinvigorate growth and create new green jobs. The IMF is committed to
helping its members accelerate the transition to the new climate economy — one that is low
carbon and climate resilient, that helps fight the causes of climate change and adapt to its
consequences. This means actions in four key areas: First, integrating climate in our annual
country economic assessments – our Article IV consultations. In highly vulnerable countries we
focus on adaptation; and we are building up mitigation analysis, including carbon pricing, in our
assessments of large emitters. Second, including climate related financial stability risks in our
financial sector surveillance – through standardized disclosure of these risks, enhanced stress
tests and assessments of supervisory frameworks. Third, scaling up climate in our capacity
development to help equip finance ministries and central banks with the skills needed to take
climate considerations into account. Fourth, mainstreaming climate indicators in
macroeconomic data. We will launch a Climate Change Dashboard this year—with indicators to
track the economic impact of climate risks and the measures taken to mitigate them.

Duke ‘18 – 153M deaths from air pollution

https://globalhealth.duke.edu/news/cutting-carbon-emissions-sooner-could-save-153-million-lives-0
As many as 153 million premature deaths linked to air pollution could be avoided worldwide
this century if governments speed up their timetable for reducing fossil fuel emissions, a new
Duke University-led study finds. The study is the first to project the number of lives that could
be saved, city by city, in 154 of the world’s largest urban areas if nations agree to reduce carbon
emissions and limit global temperature rise to 1.5°C in the near future rather than postponing
the biggest emissions cuts until later, as some governments have proposed. Premature deaths
would drop in cities on every inhabited continent, the study shows, with the greatest gains in
saved lives occurring in Asia and Africa.

C3
Naidoo ‘20 – crypto-assets
Rajiv Naidoo, Medium, "Why Stablecoins are Essential to Driving Blockchain Adoption | by Rajiv Naidoo | DigitalBitsOrg |
Medium", Feb 4, 2020, https://medium.com/digitalbitsorg/why-stablecoins-are-essential-to-driving-blockchain-adoption-
6e1ef4498c99
The extreme volatility displayed by cryptocurrency markets has proven a huge barrier to
adoption. Stable, predictable valuations support many operations within modern day
commerce. Recurring payments such as salaries, utilities, rent etc. all rely on the stability of the
asset used for fulfillment. Today’s stablecoin solutions seek to combine the benefits of
blockchain technology with the stability associated with certain fiat currencies. Stablecoins are
crypto-assets that maintain a stable value against a target price — the most common peg
observed today is to the US dollar, which is generally accepted as the global reserve currency.
There are a number of different stablecoin projects, but generally the peg is maintained in one
of three ways.Stability is one of the cornerstones of commerce, and is regularly referenced as
quintessential to creating a new global, fiat-free, digital cash system. We have seen that even if
adoption of digital assets increases, there is no guarantee that stability will result. Stablecoins
fill this gap in innovation, introducing not only predictability to cryptocurrency markets, but
also a level of familiarity for the everyday consumer.

Coindesk ‘20 – IMF will regulate 

Coindesk, "IMF, World Bank Plan Central Bank Digital Currency Rules - CoinDesk" , Oct 12, 2020,
https://www.coindesk.com/imf-world-bank-g7-countries-to-create-central-bank-digital-currency-rules
According to the report, by the end of 2022 the G20 members, the IMF, the World Bank and the BIS will
have completed regulatory stablecoin frameworks and research and selection of CBDC designs,
technologies and experiments. Stablecoins are digital currencies that are often linked to physical
currencies such as the U.S. dollar. The IMF and the World Bank will have the technical capabilities to
facilitate CBDC [Central Bank Digital Currencies, government-backed cryptocurrency] transactions
involving the countries by the end of 2025, the report said. CBDCs could improve cross-border
payments, counter Facebook libra-like corporate digital currencies and transfer emergency fund
payments to consumers during the coronavirus pandemic, the report said. But CBDCs would not be
anonymous and self-running, the report said, diverging from the virtual currencies whose distributed
ledger technology they would borrow. 

Adrian ‘19 – cooperation link

Tobias Adrian, IMF, "Central Bank Digital Currencies: 4 Questions and Answers – IMF Blog" , december 12, 2019,
https://blogs.imf.org/2019/12/12/central-bank-digital-currencies-4-questions-and-answers/
Second, the IMF is well-positioned to help foster cooperation across countries and relevant
parties. The IMF can draw on its universal membership to share information about rapidly
evolving developments across advanced and emerging market economies. Moreover, because
the IMF is a public international institution, it can bring together central bankers and
regulators, as well as investors, entrepreneurs, and academics from around the world for an
open dialogue. It has done so repeatedly at its bi-yearly meetings, in its yearly “fintech
roundtable,” and in its ad-hoc research events.

Coindesk ‘20 – regulatory framework

Coindesk, "IMF, World Bank Plan Central Bank Digital Currency Rules - CoinDesk" , Oct 12, 2020,
https://www.coindesk.com/imf-world-bank-g7-countries-to-create-central-bank-digital-currency-rules
According to the report, by the end of 2022 the G20 members, the IMF, the World Bank and the BIS will
have completed regulatory stablecoin frameworks and research and selection of CBDC designs,
technologies and experiments. Stablecoins are digital currencies that are often linked to physical
currencies such as the U.S. dollar. The IMF and the World Bank will have the technical capabilities to
facilitate CBDC transactions involving the countries by the end of 2025, the report said. CBDCs could
improve cross-border payments, counter Facebook libra-like corporate digital currencies and transfer
emergency fund payments to consumers during the coronavirus pandemic, the report said. But CBDCs
would not be anonymous and self-running, the report said, diverging from the virtual currencies whose
distributed ledger technology they would borrow. 

Goldsmith ‘20 – international regulation

Jacob Goldsmith, 2020, 34 Emory Law Review 595, "The IMF Must Develop Best Practices Before Government-Backed Cryptocurrencies
Destabilize the International Monetary System", https://law.emory.edu/eilr/content/volume-34/issue-2/comments/imf-best-practices-
cryptocurrencies-international-monetary-system.html
The development of a cohesive and consistent international standard for best practices will
allow government-backed cryptocurrency to flourish, while limiting the potential dangers
posed to the international monetary system. The organization best-equipped to handle
international oversight of government-backed cryptocurrencies is the International Monetary
Fund (IMF). 27 The IMF can provide protection to consumers, investors, and states by
providing legitimacy to these government-backed cryptocurrencies and by helping the
international community deal with the risks associated. 28 As a result of the centralization of
any proposed government-backed cryptocurrency, such cryptocurrency is unlikely to be
pseudo-anonymous. 261 Even if the government were to propose a cryptocurrency with similar
characteristics to Bitcoin, with public and private keys, the centralization of the underlying
blockchain network would almost certainly allow the government to eliminate any façade of
pseudo-anonymity. 262 At the same time, elimination of such pseudo-anonymity may help to
mitigate the concerns surrounding use in connection with criminal activity. 263 The IMF was,
and is, tasked with ensuring the stability of the international monetary system. 305 By signing
the Articles of Agreement, states bind themselves to the IMF and as such, the IMF may
impose obligations on signatories. 306 The IMF imposes obligations on member countries via
numerous articles in the IMF founding document, including Article IV 307 and Article VIII. 308
The most important obligation relating to potential concerns about an intentional injection of
instability is that IMF member-states must, “avoid manipulating exchange rates or the
international monetary system in order to prevent effective balance of payments adjustment or
to gain an unfair competitive advantage over other members.” 309 Two other IMF member-
states obligations which would help to maintain stability in the international monetary system
are a “commitment to pursue policies that are conducive to orderly economic growth and
reasonable price stability, … and to provide the IMF with data about its economy.” 310 To
enforce these obligations and further its founding purpose, the IMF has a few mechanisms of
power at its disposal. One of these powers, termed “surveillance,” 311 involves the IMF’s
process of the regular monitoring of economies and associated provision of policy advice,
which “is intended to identify weaknesses that are causing or could lead to financial or
economic instability.” 312 One of the most important Articles with respect to the IMF and its
capacity to implement oversight of government-backed cryptocurrency is Article IV. 313 Article
IV, Section 5(a), mentions “separate currencies” and seems to grant “a means by which the IMF
can exercise indirect control over currencies not formally within its reach.” 314 Thus, even if a
government does not consider its cryptocurrency to be an “official currency” of the country,
the IMF may still exercise authority as it relates to oversight and/or best practices. Private
cryptocurrencies are currently regulated on a country-by-country basis. 315 However, this is
not the ideal regulatory scheme for any form of cryptocurrency given the characteristics of
the technology and the widespread risk posed by such characteristics. 316 If properly
implemented (i.e., not over-bearing) and designed to enable the IMF to adjust rapidly to
technological advancements, such an oversight framework ought to result in a much more
globally appealing system of currency, even more so than paper (i.e., fiat) currency or private
cryptocurrencies (which may still exist in a sort of regulatory gray area).

Buira ‘16 – IMF most powerful actor to do so

Ariel Buira, "The Governance of the IMF in a Global Economy ", 01/2016, https://www.g24.org/wp-
content/uploads/2016/01/The-Governance-of-the-IMF-in-a-Global-Economy.pdf
Moreover, since 1997, following the Executive Board’s approval of the Guidance Note on Governance,
the IMF has increased its attention to issues of governance issues among its member countries. The
promotion of transparency and accountability are at the core of the IMF’s efforts to ensure the efficient
use of public resources, as well as the domestic ownership of IMF-supported reform programs. In recent
years the IMF has developed instruments to help countries identify potential weaknesses in their
institutional and regulatory frameworks that could give rise to poor governance, and to design and
implement remedial measures to an extent well beyond what was envisaged in 1997. With resources of
over $300 billion and an expanded mandate, the IMF is possibly the most powerful of all international
institutions. 

Goldsmith ‘20 – IMF key

Jacob Goldsmith, 2020, 34 Emory Law Review 595, "The IMF Must Develop Best Practices Before Government-Backed Cryptocurrencies
Destabilize the International Monetary System", https://law.emory.edu/eilr/content/volume-34/issue-2/comments/imf-best-practices-
cryptocurrencies-international-monetary-system.html
The development of a cohesive and consistent international standard for best practices will
allow government-backed cryptocurrency to flourish, while limiting the potential dangers
posed to the international monetary system. The organization best-equipped to handle
international oversight of government-backed cryptocurrencies is the International Monetary
Fund (IMF). 27 The IMF can provide protection to consumers, investors, and states by
providing legitimacy to these government-backed cryptocurrencies and by helping the
international community deal with the risks associated. 28 As a result of the centralization of
any proposed government-backed cryptocurrency, such cryptocurrency is unlikely to be
pseudo-anonymous. 261 Even if the government were to propose a cryptocurrency with similar
characteristics to Bitcoin, with public and private keys, the centralization of the underlying
blockchain network would almost certainly allow the government to eliminate any façade of
pseudo-anonymity. 262 At the same time, elimination of such pseudo-anonymity may help to
mitigate the concerns surrounding use in connection with criminal activity. 263 The IMF was,
and is, tasked with ensuring the stability of the international monetary system. 305 By signing
the Articles of Agreement, states bind themselves to the IMF and as such, the IMF may
impose obligations on signatories. 306 The IMF imposes obligations on member countries via
numerous articles in the IMF founding document, including Article IV 307 and Article VIII. 308
The most important obligation relating to potential concerns about an intentional injection of
instability is that IMF member-states must, “avoid manipulating exchange rates or the
international monetary system in order to prevent effective balance of payments adjustment or
to gain an unfair competitive advantage over other members.” 309 Two other IMF member-
states obligations which would help to maintain stability in the international monetary system
are a “commitment to pursue policies that are conducive to orderly economic growth and
reasonable price stability, … and to provide the IMF with data about its economy.” 310 To
enforce these obligations and further its founding purpose, the IMF has a few mechanisms of
power at its disposal. One of these powers, termed “surveillance,” 311 involves the IMF’s
process of the regular monitoring of economies and associated provision of policy advice,
which “is intended to identify weaknesses that are causing or could lead to financial or
economic instability.” 312 One of the most important Articles with respect to the IMF and its
capacity to implement oversight of government-backed cryptocurrency is Article IV. 313 Article
IV, Section 5(a), mentions “separate currencies” and seems to grant “a means by which the IMF
can exercise indirect control over currencies not formally within its reach.” 314 Thus, even if a
government does not consider its cryptocurrency to be an “official currency” of the country,
the IMF may still exercise authority as it relates to oversight and/or best practices. Private
cryptocurrencies are currently regulated on a country-by-country basis. 315 However, this is
not the ideal regulatory scheme for any form of cryptocurrency given the characteristics of
the technology and the widespread risk posed by such characteristics. 316 If properly
implemented (i.e., not over-bearing) and designed to enable the IMF to adjust rapidly to
technological advancements, such an oversight framework ought to result in a much more
globally appealing system of currency, even more so than paper (i.e., fiat) currency or private
cryptocurrencies (which may still exist in a sort of regulatory gray area).

Anzalone ‘19 – less volatility

Robert Anzalone, Forbes, "How Adoption Of Cryptocurrency Stablecoins Can Open Access To The 1.7 Billion Unbanked and Poor", Oct 4, 2019,
https://www.forbes.com/sites/robertanzalone/2019/10/04/how-adoption-of-cryptocurrency-stablecoins-can-open-access-to-the-17-billion-
unbanked-and-poor/?sh=59967bef777b
Potential adoption can have a competitive advantage in countries where currency volatility,
compounded by a poorly regulated banking system or nonexistent financial infrastructure, is
the norm. Stablecoin trading can provide access to banking with less volatility, compared to
economies where the financial system is viewed with a lack of trust. Venezuela is a good
example.
 South ‘18 – more access
Denver South 4-26-18 (Can blockchain technology be used to end poverty? https://denver-south.com/can-blockchain-technology-be-used-to-
end-poverty/)
Lack of access to financial assets is one of the key reasons people remain impoverished.
About 2 billion people who could have a bank account don’t, most of those in developing
areas. Banks require complex, and costly, infrastructures to work. Building out new
infrastructures in developing regions is difficult, expensive and slow. Blockchain tech removes
the need for banks entirely, meaning no complex infrastructures, no hidden costs and no
chance of local governments — in many areas filled with corruption — interfering. All that’s
needed is an Internet connection for people to have access to currency and manage their
finances. There are, of course, other challenges with providing Internet access, but these are
easier to solve and closer to resolution than building complex banking systems will ever be. The
blockchain treats a farmer in Africa the same way it treats a hedge-fund investor in New York
City. Everyone is included, and that’s a powerful step towards ending poverty.

Anzalone ‘19 – 1.7 billion

Robert Anzalone, Forbes, "How Adoption Of Cryptocurrency Stablecoins Can Open Access To The 1.7 Billion Unbanked and Poor", Oct 4, 2019,
https://www.forbes.com/sites/robertanzalone/2019/10/04/how-adoption-of-cryptocurrency-stablecoins-can-open-access-to-the-17-billion-
unbanked-and-poor/?sh=59967bef777b
The 2017 Global Findex database, launched with funding from Bill and Melinda Gates
foundation, points to advances in digital technology are key to achieving the World Bank goal of
universal financial access. The same report highlights that 1.7 billion people lack a bank
account. Stablecoin can become a path for the unbanked to create a stable store of monetary
value and exchange. If access to digital technology increases across all nations, the implication
for the unbanked and poor may well be widespread crypto adoption over local and less
resilient financial systems. An adoption strategy to watch is where stablecoins can offer an
alternative to hyperinflation, offer price stability and financial access to the public.

PYM ‘18 – billions out of pov

PYMNTS, "Overstock CEO: Blockchain Can End World Poverty | PYMNTS.com", 06-25-18,
https://www.pymnts.com/blockchain/2018/overstock-blockchain-global-poverty/
Byrne is considered a blockchain technology leader: Overstock became the first major retailer
to accept the cryptocurrency in 2014. “What works in the United States — the most successful,
prosperous and probably democratic country in the world — should be extendable to the rest
of the universe, and we can do it with your technology,” de Soto said to FOX. Byrne has been a
long-time advocate for bitcoin and said the blockchain technology can lift billions out of
poverty. He said, “Hernando and I intend to use blockchain technology to empower and
enfranchise the 5 billion people who live outside formal economies within five years."

C4
25% more likely to recieve budget support + warrant
Thomas Stubbs, World Development , "Sci-Hub | Catalyzing Aid? The IMF and Donor Behavior in Aid Allocation. World
Development, 78, 511–528 | 10.1016/j.worlddev.2015.10.010", 2015, https://sci-
hub.se/https://doi.org/10.1016/j.worlddev.2015.10.010
We posit that the purported relationship between IMF programs and aid flows operates via three general
pathways. First, the presence of Fund programs may serve as a catalyst for donors because they signal
policy credibility; that is to say, they provide a ‘‘stamp of approval” to borrowing countries (Bird &
Rowlands, 2007; IEO, 2002, 2007). The conditionality component of Fund programs stipulates long lists
of reforms on issues such as public spending, bureaucratic organization, and domestic legal environments
(Babb & Carruthers, 2008; Kentikelenis, King, McKee, & Stuckler, 2015; Kentikelenis et al., 2015). 2
Insofar as donors value the introduction of such reforms (Claessens et al., 2009), they may follow the
IMF into developing countries. Fund programs therefore signal recipient merit, as borrowing countries
show they are committed to ‘‘putting their house in order”—information that would have been difficult
and expensive for donors to collect and interpret ad hoc. On average, IMF recipients are 25% more likely
to receive general budget support, 26% for debt relief, and 4% for humanitarian aid, holding all else
constant.’

Edmore Mahembe, 5-11-2018, "Foreign aid and poverty reduction: A review of international literature,"
Taylor & Francis, https://www.tandfonline.com/doi/full/10.1080/23311886.2019.162574

This main objective of this paper is to present a synthesis of the empirical literature on the effectiveness of foreign aid on poverty reduction.
This is done through a review of empirical studies on the impact and effectiveness of official development assistance (ODA) or foreign aid on
poverty reduction. The study divided the reviewed empirical literature into two broad groups: the studies which used non-monetary
measures of poverty and those that used monetary measures of poverty. The
survey results show that foreign aid has a
positive impact on poverty, as reported by the majority of studies in both the non-momentary and
monetary measures of poverty groups. This means that in general, foreign aid reduces poverty, irrespective of the type of
poverty measures used. Of the studies which showed that foreign aid was effective in reducing poverty, it
was highlighted that: (i) democracy enhances the effectiveness of aid; (ii) aid targeted at pro-poor
public expenditures such as agriculture, education, health and other social services was effective; and
(iii) aid disbursed in production sectors, infrastructure and economic development was more
effective in reducing poverty. These channels should, therefore, be considered when making policy decision on aid allocation.
Hirano and Otsubo (2014) applied the conceptual framework of globalization and the poverty-growth-inequality (P-G-I) relationship to
investigate the effectiveness of aid to development. The paper finds that social aid (education, health and water and sanitation spending)
significantly and directly benefits the poorest in society and economic aid (transportation, energy and communication and financial
infrastructure spending) increases the income of the poor through growth. A recent study by Arndt et al. (2015) assessed the
impact of aid on economic growth, social welfare indicators (poverty and infant mortality) and intermediate outcomes (such as investment,
consumption, health, education and agriculture). The study estimated the long-run cumulative effects of aid in
developing countries using limited information maximum likelihood (LIML) and inverse probability weighted squares (IPWLS)
estimators in a simultaneous equations model framework, for the period 1970–2007. They found evidence that aid does
stimulate growth, improve social welfare indicators and reduces poverty. Though the results indicate that aid
does not have a significant effect on inequality, it was discovered that aid can raise investment, improve school enrolment, boost life
 
expectancy and reduce infant mortality (Arndt et al., 2015, p. 14). theorists (Rosenstein-Rodan, 1943; Nurske, 1953; Lewis, 1954) suggest
that foreign aid provides the necessary capital to boost developing countries into self-sustaining economic growth. It was argued that poor
countries needed a “big push” to free themselves from the constraints of the low-level trap (Clunies-Ross et al., 2009; Rosenstein-Rodan,
1943), and therefore foreign
aid “jump starts economic growth, and initiates a virtuous cycle whereby
investment generates income and thus raises the economic return to further investment ” (Shleifer, 2009,
p. 381). Based on this assumption that aid reduces poverty through economic growth, many poverty allocation models were developed in
line with the theories by Harrod (1939; 1948), Domar (1946), Chenery and Bruno (1962), Chenery and Strout (1966), and Thirlwall and
Hussain (1982) The
authors showed that aid, operating through increased economic growth, was
responsible for lifting about 10 million people out of extreme poverty each year.
Crucially, this goes into infrastructure.
Paolo de Renzio, JSTOR, "Donor Engagement and Budget Transparency in Aid Dependent Countries" , 2011,
https://www.jstor.org/stable/pdf/resrep14159.pdf?refreqid=excelsior%3A5a5d4ab488a63991ea743b4e724a1f66
During this period the multilateral agencies such as the World Bank and IMF also played a major role in
donor financing – predominately through the issue of concessionary loans to finance infrastructure and
other forms of development spending. . Accordingly, as multilateral agencies such as the IDA, IMF and a
number of UN agencies scaled up their assistance levels so did other bilateral agencies such as Norway,
the European Commission and Germany. The 1990s and 2000s saw a continued growth of donor activity
in Malawi such that by 2008 the total number of partners had reached 43.