The Bretton Wood's institutions: IMF, World Bank and IBRD - Essay Example

Instruction: Task: Bretton Wood's The essence of development is crucial especially in developing nations to boost both economic growth and the GDP. In the same view, there should be stronger institutions and leaders who ensure funds meant for development are correctly disbursed and used. Similarly, there should be stricter laws that prosecute individuals and institutions that breach ethical regulations of finances in support of economic prosperity (Ray 159). Therefore, in terms of soliciting for funds, governments should rely on branches of Bretton Wood’s institutions that conduct a follow up of the use of such funds. This is through regular monitoring and rigid policies especially on nations with weak institutions. On the other hand, foreign investment for poor nations should be limited to acquiring manageable loans and grants that do not collapse the economies. This will increase excellence both African and Asian nations in terms of economic prosperity. Development entails the well-being of a nation or individual in various forms. This may include economic, social or political development and the way it affects the citizens of such a country. Similarly, development may also encompass the gradual advancement or growth that leads to the progress in other sectors of the nation in terms of Gross Domestic Product (GDP) and exports among others. Other fundamental areas include education, health and governance in the context of the provision of services for the benefit of the citizenry. Therefore, the involvement of Bretton Wood’s institutions such as IMF, World Bank and IBRD ensure there is a financial regulation and fair dispensation of funds to sponsor developmental projects. Such institutions also participate in the regulation of the systems that oversee the monies dished to nations especially the third world countries (Szirmai 45). On that account, there are several ways, which education development, through funds acquired from Bretton Wood’s institutions has helped the advancement of nations. This is manifested in the increase of public schools and literacy levels where there participation of IMF and World Bank is high. In other words, education is now associated with sustainable development that permits people to gain skills, knowledge and skills. Other benefits include values and attitudes that are meant indicate a sustainable future where everyone thrives. Similarly, educational development has meant that matters of sustainable prosperity are translated in areas of learning and teaching for the purpose of students and society. In the same breadth, Bretton Wood’s institutions have given funds to support the reduction of poverty, biodiversity and sustainable consumption to education an enjoyable venture (Tiwari 167). This is manifested in a nations such India, Indonesia, Vietnam and Singapore where financial aid is boosting the education standards of most schools. In this case, the IMF and World Bank has dispensed funds in the ministries of education to facilitate standards of education. Therefore, this has translated to competencies of imagination, critical thinking and decision making skills in a mutual may for kids. This is also apparent in teachers and tutors who get motivation from governmental and non-governmental ventures. However, when it comes to economic development in terms of assistance from Bretton Wood’s institutions, there are interesting issues. This suggests that economic development entails concerted and sustained actions that are used by policymakers in the promotion of the living standards including economic health. In the same breath, y in failed states mostly found in Africa such as Somalia and Democratic Republic of Congo, economic development refers to qualitative and quantitative alterations in the economy (Mbaku 134). Therefore, IMF and World Bank have not been successful in their development ventures because of several reasons. For example, issues such as bad governance policies, corruption and civil wars have hampered the efforts of Bretton institutions in enhancing economic prosperity. On that prospect, the significant sections of development such as critical infrastructure, human capital, environmental sustainability and economic have experienced heavy setbacks. There is also the loss of social inclusion from countries such as Ivory Coast and Liberia that has kleptrocratic leaders thus affecting critical sectors that entail literacy, health and regional competitiveness. However, it is fundamental not to confuse economic growth with economic development they are policies and well being of citizens. This means that economic development deals solely with intervention of policies to improve the lives of the ordinary citizens’ economic growth focuses on market productivity. Furthermore, the economic growth of most African countries has not performed well in terms of GDP because IMF and World Bank do not conduct any follow-up (Hagmann & Peclard 80). Therefore, this leads to the breakdown of the communities in such nations of incompetent governance, inequalities and corruption among others. In the same context, economic development has prospered in most nations such as Singapore, India and Vietnam have experienced gradual prosperity courtesy of funds from Bretton Wood’s institution. This is because of its better political, economic and social structures that work towards the interest of the people. Similarly, there has been a consistent support from the regional powers in ensuring the funds for economic development are well used to prevent corruption and misuse of funds. Countries above have also adopted economic and industrial modernization techniques proposed by World Bank and IMF to enhance development in practicable phases (Dutta & Liang, 156). Additionally, there has been the establishment of enterprise development and organizational support from the government to enhance market evolutions and responsible management. Another contribution from the Bretton Wood’s institution is the provision of grants and loans for business organizations and managerial patterns to reflect the effect of foreign investments. It has hence led to high labor productivity in some nations while others the number is dismal because of the policies of foreign investment. In the same scope, while the efforts of Bretton Woods institutions has resulted to pariah states because lack of correspondence and other similar economic activities, other nations have benefited heavily. This is in terms of according the citizens personal entitlements and high-growth premiums in nations such as Hong Kong, Singapore and South Korea among others (Dator 68). On the other hand, there are neoclassical strategies that are used by Bretton Woods’s institutions that ensure economic development is sustained despite the sets of political interference. This suggests that development economics has thrived in such Asian nations because there are essential models and ideas that translate to prosperity in the economic growth. There is also the aspect of growth and development where World Bank, IMF and IBRD have had their fair share of ups and downs. Dependency theorists cite the failure of Bretton Woods’s system to save poor nations from exploited by industrialized nations. This is because the functionality of such initiatives fails to monitor the relevance of economic growth and development to the ordinary citizens (Baume 112). However, the policymakers and development economists that work for entities such as World Bank have noted that there is gradual growth in poor nations in terms of spent income and human development in health and education sector. There is a notion that human development and economic growth are directly related making the benefits of Gross National Product (GNP) tally with the expenditure of individuals. On the other hand, governments and NGOs that collude with World Bank in spurring economic growth through increasing incomes of the citizens thus leading to human development and growth. In the same scope, income distribution discrepancies have led to reduction in resources among poor nations and middle come earning countries. There are also private incomes that influence the consumption rate of citizens in the context of social amenities such as education, healthcare and basic needs among other things. Alternatively, there is an urgent need for the Bretton Woods regulation system to comprehend the ratio of income equality between failed states and successful countries in Asia. Another sensible issue to observe entails programmes such as Capability Expansion using the yardstick of Economic Growth through income assessments (Basu, 58). This suggests that the capitalistic attachment of rules and regulations by most of the Bretton’s Institutions should follow a stipulation that abides by the existing ethos and values of the country. In other words, there should be practical models that champion the economic growth of failed nations that are mostly found in Africa. Furthermore, there should be quicker solutions for pariah states in terms of first solving their problems before dishing out funds. For example, IMF and World Bank should institute taskforces that investigate the causes of rampant of fraud that stifle economic growth thus hampering development. The analysis should delve on the state of institutions from the development context such as banks, health centers and schools among other important places. Another imperative action is to inculcate various forms of economics in the nations funded by Bretton Woods’s institutions such micro and macro economic factors. This implies that IMF and World Bank should transfer elements of success in most Asian nations into the African problem to boost development. On that account, there should be increased support from governments and other related agencies on the need to help poor countries prosper (Ayuk & Marouni 123). This starts by intervening in cases of civil wars and cooperating with international authorities to bring justice and equality to ordinary citizens. This will thus inspire citizens to aim for a better living through agitation for their rights and freedoms. Works Cited Ayuk, Elias & Marouni, Mohammed. The Policy Paradox In Africa: Strengthening Links Between Economic Research and Policymaking. New York, NY: IDRC. 2007. Print. Basu, Kaushik. Analytical Development Economics: The Less Developed Economy Revisited. Belmont, MA: SAGE. 2007. Print. Baume, Carole. Managing Educational Development Projects: Effective Management for Maximum Impact. New York, NY: Routledge. 2002. Print. Dator, James et al. Fairness, Globalization, And Public Institutions: East Asia And Beyond. New York, NY: University of Hawaii Press. 2006. Print. Dutta, Manoranjan & Liang, Lata. The Asian Economy and Asian Money. New York, NY: Emerald Group Publishing. 2008. Print. Hagmann, Tobias & Peclard, Didier. Negotiating Statehood: Dynamics of Power and Domination in Africa. New York, NY: John Wiley & Sons. 2011. Print. Mbaku, John. Institutions and Development in Africa. New Jersey, NJ: Africa World Press. Print. 2004. Ray, Debraj. Development Economics. New York, NY: Princeton University. 2011. Print. Szirmai, Adam et al. Entrepreneurship, Innovation, and Economic Development. New York, NY: Oxford University Press. 2011. Print. Tiwari, Anshuja. Entrepreneurship Development In India. New York, NY: Sarup & Sons. 2007. Print. Read More