While the International Monetary Fund does its due diligence, there are still weaknesses in the processes the organization uses when gathering information on various countries. So, according to Dev Kar, lead economist with Global Financial Integrity, this means investors need to do their homework.
“The onus falls on the investing institutions to maintain a strong research department,” he says, “staffed with good economists who do in-depth analysis on the countries where there is going to be more exposure.”