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Global Organizations and Nation States - Essay Example

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College
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Marketing
Pages 4 (1004 words)

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Global Organizations and Nation States Introduction This paper is an attempt to explore briefly the impact of global organizations such as IMF and World Bank on the domestic policies of countries of its affiliation…

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Global Organizations and Nation States

Furthermore, both these institutions attach many preconditions on the receiving nations for borrowing money. These are mainly part of the neo liberal economic ideology, which force these countries to follow free market policies, reduce government intervention, privatization and decreasing the size of the public sector, liberalization, reducing trade barriers, elimination of subsidies, reduced protection of the domestic industries, currency devaluation and others (Karns & Mingst, pp. 98-99). Despite the fact that these policies have appeared to be working for many developed countries, evidence shows that it has been disastrous for the poor and third world countries, which actually seek loan from IMF and World Bank (Pease, pp. 254-259). Critics of these international organizations believe that these organizations are actually Washington controlled and headed by the developed countries of the world. Important here to note is that United States and other European countries ran out of their resources decades ago. Furthermore, their domestic markets are past the point of saturation and low population growth rates mean that their dream for aggressive growth cannot be fulfilled (Jawara & Kwa, pp. 75-78). ...
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