The Problem of International Lending

23 November 2025, Version 2
This content is an early or alternative research output and has not been peer-reviewed by Cambridge University Press at the time of posting.

Abstract

This paper will explore the different ways in which the International Monetary Fund (IMF) may either intentionally or unintentionally support cross-border terrorism and the financing of Non-State Actors (NSAs). It discusses how the IMF’s lending practices in politically unstable and/or poorly governed countries can strengthen governments that support, tolerate, or are not able to control extremist groups. These financial flows, often given with little oversight after they are disbursed, can increase regional insecurity and disrupt international peace efforts.

Keywords

IMF Lending
Terrorism
Corruption
Monte Carlo Simulation
Pakistan Political Economy
Balance of Payments
Macroeconomics

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Comment number 1, Алмаз Яруллин: Nov 23, 2025, 23:24

Thank you for sharing this insightful working paper on "The Problem of International Lending"! The analysis of how IMF lending practices can inadvertently support terrorism financing in unstable regions like Pakistan is both timely and thought-provoking. The integration of Monte Carlo simulations with political economy insights adds significant depth to the discussion on oversight gaps. I'm eager to see further developments in this area—excellent contribution to macroeconomics and global security studies!