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Global Organizations and Nation States - Essay Example

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This essay explores the main part of the neoliberal economic ideology, which forces 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. 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 a loan from IMF and World Bank. 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 the 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. The only possible way in which they could sustain or even continue their growth is by trying to exploit the resources of the third world countries, which are rich in natural resources but do not have the tools and the expertise to make use of them. International organizations such as International Monetary Fund, World Bank, and World Trade Organization was the clear answer. These organizations, headed and controlled by a few developed countries, allow them to force the third world and underdeveloped countries of the world to open their markets, deprotect their industries, and reduce the government intervention. Important here to note is that in case of a majority of the African and South Asian countries, these policies have never worked. ...Show more
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Summary

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. The paper will achieve the same by presenting examples, theory and some facts…
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