The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “International Institutions And National Sovereignty” was published on August 14, 1992, and was authored by Prof. S.L.N Simha. In the context of the raging controversy in the country about the role of international financial institutions, especially the IMF and the World Bank, concerning economic and financial policy changes, the author is of the opinion that active membership of an international organisation and total sovereignty for a member are incompatible. A degree of surrender of national sovereignty is basic to any cohesive international cooperative arrangement, more so in the case of international financial institutions to ensure prompt repayments. However, the author also acknowledges the tendency of these international financial institutions to be dogmatic and biased. Thus, he recommends countries, especially the developing ones to be able to weed out unacceptable conditions while at the same time not injecting into the matter any false ideas of prestige.