The IMF and its role in the international political economy For us, political economy is not a new word due to the close relationships between politics and economics. The development of politics is due to the development of society, and the development of society is largely driven by economics. The parallel existence and mutual interaction of “state” and “market” in the modern world create “political economy”; without the State and the market there could be no political economy (Gilpin, 2003, P9). The market allocates resources to a particular group, class, or region where conditions are most favorable. As a result, market economies lead to unequal development both nationally and internationally. Since our question concerns international political economy, the connection is that uneven development in different economic systems of nations leads to uneven status of countries around the world. The struggle between groups and states over the distribution of benefits and costs has become an important feature of international relations in the modern world (Gilpin, 2003, P21, para.2). It is certain that the market or economy has a great influence on sovereign states. The evolving market is very likely to change states. So economics is crucial for a country, in a globalizing world with vast interactivity between countries, to get a place. As part of globalization, the globalization of finance, claiming to have radically altered the traditional monetary relationship between states and markets, ultimately undermines national monetary sovereignty (Cohen, 2003, P215). Because of the importance of finance in globalization and global political economy, organ...... middle of paper....... Gilpin, Robert. (2003). International political economy. Part 1, Conflicting Views of International Political Economy. Lynne Rienner Publishers, Inc. Colorado.5. Goddard, C. Roe. (2003). International political economy. Part 2, International Monetary Relations. Lynne Rienner Publishers, Inc. Colorado.6. International Monetary Fund: the role of the IMF and the history of the IMF. Cold fire technology. Retrieved April 26, 2008, from,7. IMF staff. (June 2000). The recovery from the Asian crisis and the role of the IMF. International monetary funds. Retrieved April 27, 2008, from < http://www.imf.org/external/np/exr/ib/2000/062300.htm#III >8. Krueger, Anne. (June 3, 2004). Promoting international financial stability: the IMF at 60. Retrieved April 12, 2008, from,