The Levin Institute (n.d.) article tell us that the IMF has three main accountability activities: “surveillance, financial assistance, and technical assistance.”
Surveillance is best described as an annual audit of the borrowing countries policies around money, labor, trade, as well as the exchange rate, and general macroeconomic health. The results of these audits are given to the government, and also released to the public. I can’t imagine that it’s comfortable for the dependant country to have its fiscal dirty laundry aired, especially when it comes in the form of the opinion of its lending authority.
Technical Assistance is deployed to help the governing body enact the changes required in order to receive a loan. This technical assistance seems to be a sort of project management team that aides the responsible departments to implement these changes. Although it sounds intrusive, one has to assume that the dependant country doesn’t have the experience to manage such an extensive undertaking, otherwise they probably wouldn’t be in the financial straits that made it necessary to have to accept a loan with such strings attached.
Financial Assistance: These come in different forms, all with heavy conditions attached. There are short term loans, which are to be paid back in 12-18 months and are created to deal with immediate, short term problems. For countries with more of an infrastructure issue requiring longer, more in-depth lending solutions, a 3-4 year loan is made with
Development assistance- the transfer of resources (cash, commodities or services) which promote the economic or welfare development of the recipient. (Organization for Economic Cooperation and Development)
All the aid is given mostly to support people living in those countries who are not as fortunate as Australians and need money to help fund hospital bills, educational bills, to provide clean and safe water, sanitation and unemployment.
Foreign aid is a term referring to resources and money lent out or given to a ‘recipient nation’ who is in need by a wealthier ‘donor country’. This can be given either in long term ‘humanitarian aid’, aimed at improving the welfare and development of the human population, or short term ‘emergency aid’ focused on providing the daily necessities to a population after a war, or natural disaster. Despite common belief, the purpose of foreign aid is not only to help countries which are in need, but also to achieve a range of social, economic, cultural and geopolitical goals that will benefit our national interest. Australia is currently the largest foreign aid donor of its nearest neighbour,
Australian Aid (the Australian Agency for International Development) is when money, goods and skills from a developed country is transferred to a developing country. The Australian Aid program grants approximately 5 billion dollars worth of Aid. Australia gives aid across in a large variety countries (seen in Figure 1). The most assistance given is to our closest neighbours in the Pacific and East Asia. Their is a large amount of poor people in our region, this is where Australia can make the most difference.
Based on what I read, the IMF and the World Bank are good organizations. The purpose of them it's to prevent economies crises and when they were founded, help to rebuild economies affected because of war. However, I found one project on the internet shows the opposite. The support for this project from World Bank gave was indirect because one of its own organizations, the International Finance Corp provided loans to an American company
Foreign Aid can be described many ways, from a governments point of view, foreign aid is a voluntary transfer of resources from one country to another country. Foreign aid can be delivered in many different ways, a major part of foreign aid is providing medical assistance to a country when they cannot afford it themselves. Different countries view Aid in different ways, and the standards of what exactly constitutes aid varies depending on the country, for example until around 1960 most countries considered military assistance a form of foreign aid but this has since been changed. Aid, however is not restricted to governments and can be provided by individuals or private organizations as well.
cases, those resources can be used for a country to develop their economic, technical, or military status. Foreign aid could also be applied toward assisting a country in desperate need of help, for some reasons as serious as natural disasters, downfall in the economy, or even loss of jobs. The idea of foreign aid is to assist in getting countries to a position to support themselves and their people. Foreign aid has controlled discussion in recent years as demand and need for it has continually increased for countries all around the world. For years foreign
Encyclopaedia Britannica defines Foreign aid as ‘the international transfer of capital, goods, or services from a country or international organization for the benefit of the recipient country or its population. Aid can be economic, military or emergency humanitarian’. As of 2015 Australia’s aid budget has fallen to $4 billion from $5.6 billion in 2013 after the 2014 Abbott government cuts which places Australia as the 12th highest country for aid as of 2015. These cuts will mean that Australian aid will be 0.22% of Gross National Income (GNI) of the 2017-18 budget compared to 0.34% of GNI in the 2013-14 budget. Australia under the governmental agency
The World Bank is among the organizations that have promised aid. According to Finance Minister Hoshiyar Zebari, the WB agreed to loan $1.7 billion to help stimulate the economy. Zebari said that the aid will be used to fund development projects, but hasn’t specified which ones yet. This figure is on top of a $833 million
Australia should not reduce its foreign aid commitments. Foreign aid in Australia is a source of funds and support that helps achieve the actions that can be taken to address the problem of poverty in developing countries and regions. Foreign aid can be in forms such as loans or grants and can be provided either directly from one country’s government to another (bilateral aid) or via large international coordinating agencies like the World Bank. In particular, Australia focuses its aid work in the Asia Pacific region as it is one of the poorest regions of the world. By providing Foreign aid to developing countries, such as Indonesia, Papua New Guinea, Pakistan and many others, Australia builds stronger communities and more stable governments.
In this section the U.S. foreign assistance explained its two-fold purpose first is furthering America’s interests, while improving lives in the developing world.
Foreign assistance is aid provided by the United States to other countries in order to
Throughout, there is a keen sense that the IMF is completely guided by ideology which is focused on the free market and the markets’ ability to guide the economy properly at all times. It would seem that all those who work at the IMF are misguided and/or towing the party line in the form of the Washington Consensus. Moreover, of greater concern is perhaps that throughout this piece, it would seem that the World Bank could do no wrong. Stiglitz portrays himself and the World Bank as the white knight(s) who were championing the rights of those who could not fight for themselves against the US government, the US Treasury and even the Federal Reserve. He does so with little regard to any policies or actions that these organizations have done for positive reasons or with positive results. He displays unwavering support for governments to stimulate aggregate demand via social spending, so it is surprising that he is so punitive towards Western governments.
This point of view explored functions for agencies such IMF and World Bank would discussed at last part of this essay.
International aid is an act of good favour which one country gives support and reinforcements to foreign countries. The purpose and goal is to include economic development, increasing government accountability, improved healthcare, proper sanitation & water, education and creditability. Such international aid also includes extra support to natural disasters and crises. These free flows of aid from those countries are critical for many struggling nations.