United States, being the biggest stakeholder holds 17% of the vote in World Bank while all African countries have less than 9% vote (“The World Bank and IMF in Africa”,2008).
Despite six decades of uninterrupted function, according to United Nations development program, over a fifth of world’s population lives below international standard of poverty line of $1 a day, another 1.6 billion survive between one and two dollar. One third of world’s population is either unemployed or underemployed. Combined incomes of richest fifth of the world population was over 60 times greater than the poorest fifth in 1998,in 1997 41% of Third World had no access to safe drinking water,57% had no access to sanitation,40% of children under five were underweight, 840 million people malnourished and under five mortality rate was 169/1000 live births. Moreover, external debt repayment or servicing amounts to 92.3% of the GDP and the list goes on (Ecologist, 2000).
Since Asian financial crisis, role of IMF in managing the economies of developing countries is facing severe criticism. Non-governmental bodies have always been concerned about African development and IMF’s role in helping or hampering the process. Moreover, increasing debates over US economic policy for Africa and international pressures for poor countries debt cancellation highlighted IMF policies in Africa. Increasing external debt and multiplying IMF’s power also diverted the attention towards the impact of IMF’s economic policies in African countries (Naiman & Watkins 1999). Davison Budhoo resigned from IMF in 1988 in revulsion over policies what he identified as IMF’s “Increasingly genocidal policies.”Operations of these agencies proved to be catastrophic (Budhoo n.d., p.20).
‘Instead of development and favourable adjustment, the Third World today is in an accelerated spiral of economic and social decline. That ...
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The IMF and the World Bank
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3 Pages(750 words)Essay
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