The role of IMF policies during financial crisis and reform actions in IMF

Negative attacks of either larger or smaller crisis towards liberal economy annoy countries in terms of several matters in the world economy since 1870?s. Particularly during the Great Depression held in the USA in 1929, several undesirable events took place over the world. The second world war had been broken out while the world economy could not gather itself. People has been faced with catastrophe and the welfare accumulation of the world has been evaporated. On the other hand, the United Kingdom which has several colonies, has been effected negatively and lost the power to control the colonies. This power loss of the UK, brillantly has been appeared as a power over the USA after the Second World War. The USA as a resolute to maintain this hegemonic power and not to give rein to other countries, established economic societies such as International Monetary Fund (IMF) and the World Bank (WB). This study examines one of the greatest crisis of the world in 1929, the Great Depression, the institutional structure and the policies of IMF which has been establised after the Great Depression as a reformer against the political and economical instabilities. Because of financial crisis led by policies of the IMF after 1990 caused some criticism over years. This criticism kept the idea to reform the IMF in terms of policy and structure always on the agenda. In this study, the relationship between these local and national crisis observed in several developing countries and IMF will be investigated from the point that such crisis caused by neoliberal policies of the IMF particularlu held during the last quartile of 1980?s. Furthermore, attempts of the IMF in order to reestablish its own legitimacy during the global financial crisis existed in 2008 and stil couldn?t be rescued, has been examined as reform actions.Keywords: Great Depression, IMF, Financial Crisis, Liberal Economy, Reform