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
These are the major lenders to developing countries for financial assistance, poverty and inflation reduction, development and debt…
It is evidently clear from the discussion that among the various policies, the Investment Policy of UNCTAD is directed towards the developing countries in order to enhance their investment policies as well as to publicize the governments and the international private sector with an individual country’s business atmosphere.
The World Bank and International Monetary Fund (IMF) introduced structural adjustment programs, targeting developing countries in as preconditions for securing loans from the global financial institutions1. Since its inception, structural adjustment has had various impacts on the social economic development of the recipient countries.
As the report declares global institutions have highly contributed to globalization. Globalization is a process that aims at expanding international business operations, which is facilitated by global communications as a result of developments in socioeconomic, environmental, political and technological advancements.
The IMF and the World Bank
“The International Monetary Fund (IMF) and the World Bank are institutions in the United Nations system and are composed of member countries, 188 countries. Their approaches to this goal are complementary, with the IMF, focusing on macroeconomic issues and the World Bank concentrating on long-term economic development and poverty reduction” (IMF, 2012, p.
Adherence to structural adjustment programmes (SAPs) have been used by the IMF (and the World Bank) as conditionalities for giving loans and grants to developing countries over the years, especially from the 1980s when many sub-Saharan African countries (and some other developing countries) were facing chronic economic catastrophes and had to sign on to the SAPs in order to access needed loans from the IMF.
This paper attempts to analyze the role of the International Monetary Fund in this light, and the concept of Grameen Bank, propagated by Mohammed Yunus, who was awarded the Nobel Prize for the same.
The IMF was a part of the Breton Woods system, established in the aftermath of the second world war.
In the globalization era, the World Bank and the IMF play vital roles in shaping the economic, political and social state of affairs of nations. If we take a closer look into the affairs of these two organizations, we can clearly observe that at the start, the
to IMF and World Bank macroeconomic programmes prescribed for developing countries whose economies are going through the throes of stagnation, decline, debt, and fiscal imbalances. Adherence to structural adjustment programmes (SAPs) have been used by the IMF (and the World
s criticism; some of the most traditional criticisms are that it is too short-run oriented, it does not pay attention to its impact on growth, it is too focused on demand management, and its programs affect social spending. This paper delves into unravelling the concept of
3 pages (750 words)Essay
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