Hostility Against the World Trade Organization, International Monetary Fund, and World Bank

Neoliberalism is an economic philosophy drawn from the ideas of classical liberalism from Adam Smith. Neoliberalist policies rely on the ideas that markets are s the best decision-makers of resource allocation and trade across borders is optimized when there are few restrictions as possible. (Lu) Supporters of neoliberalism say that it gives worker freedoms and choices to work in more places for higher wages. It leads to freedom and harmony in the world by linking people together, along with giving economic and political freedom, and that poverty is due to the lack of a free market. (Friedman) Critics on the other side, say that globalization can’t be put in place successfully without some level of regulation. (Pearlstein) Critics have also

Based on the effects of economic globalization in the developing world, in this case most African states, Okogbule observed that most states in Africa can hardly fulfil the long-held mandate, which is the promotion of the well-being of citizens in all aspects of development. With the continued press for economic globalization by the developed world, the developing states keep losing their ability to determine the path of economic progress. As such, it is imperative to observe that economic globalization returns most states in the developing world to the states of dependency on the developed world. The developed world has adequate backup structures that enable them to take advantage of most of the opportunities that prevail in the globalized markets. In doing so, they either leave very little room or no room at all for the developing countries to make gains from the globalized markets (Okogbule, 2008, p. 213-231.). Therefore, the issue of economic monopoly comes into the picture here. Economic monopoly forms the foundation of the resentments that are made by the developing countries about their inability to make gains from international trade.

Joseph E. Stiglitz in his book, Globalization and its Discontents, seeks to explain how an institution that is set to ensure economic and political stability in developing nations often fails to contribute to their progression. Loans made by international institutions, such as the IMF, and the World Bank, are often promoted as to have the ultimate aim of enhancing a state’s domestic economic stability and international capabilities. The author mainly focuses his arguments on critiques of the IMF and its actual motives for lending enormous amount of money to countries facing dire circumstances. In addition, Stiglitz elaborates on his argument as he contends on issues affecting developing nations that come as consequence of receiving loans from international lenders. Such issues are result of liberalization, privatization and deregulation of markets.

Two-Thirds of the world population live in developing countries. It is hurtful to the world as a whole to keep these countries and the people at bay while world leading countries continue to gain more strength with every year. Neoliberalism started in the 1970s because of the growing threat of organized labor in developing countries but the political elite. Although soon in the end it seems to only serve those yet still. Recently,

Critics of neocolonialism portray the choice to grant or to refuse granting loans (particularly those financing otherwise unpayable Third World debt), especially by international financial institutions such as the International Monetary Fund, and the World Bank, as a decisive form of control. They argue that in order to qualify for these loans (as well as other forms of economic aid), weaker nations are forced to take steps (structural adjustments) favourable to the financial interests of the IMF/WB, but detrimental to their own economies and often safety, increasing rather than alleviating their poverty.

The three major international economic institutions are the International Monetary Fund (IMF), the World Bank and the World Trade Organization; this book mainly focuses on the IMF and the World Bank, due to the author’s first-hand experience with both institutions. The IMF, a public institution built as a guiding hand for economic stability around the world, has brought false

Dating back to 1949, the World Trade Organization was preceded by the General Agreement on Tariffs and Trade. The primary purpose of the General Agreement on Tariffs and Trade was to reduce tariffs and other barriers to trade, as well as to eliminate preferences in order for trade to be mutually advantageous. Currently, the General Agreement on Tariffs and Trade is still in effect under the World Trade Organization, which was established to facilitate international trade, economic growth and development. However, the goals of the World Trade Organization have been called into question. Although the intergovernmental organization was established in order to aid developing states to succeed into developed states, the World Trade Organization has been criticized for widening the social gap between the Global North and South. The World Trade Organization’s agenda and implementation of its agreements have all served to advance the interests of developed states, sidelining the interests of developing states. What is increasingly more alarming is the fact that three-fourths of the members within the World Trade Organization compromise of developing states. This paper will aim to analyze the various ways in which the World Trade Organization has marginalized and allowed for the exploitation of developing states. Through examining the consequences of foreign direct investment, the dispute settlement process, tariff escalation and the TRIPS agreement, this paper will

Unfortunately the failed experiment of neoliberalism is not merely of historical or academic interest, since it is ongoing. The prevailing orthodoxy in the economics profession, finance and economic ministries in low- and middle-income countries, and the global media from which many policy-makers draw their inspiration and fears, remains much the same as it was twenty or even thirty years ago. The IMF, the World Bank, and the WTO are still largely pursuing policies in the same direction, and although they have met increasing resistance and have lost considerable clout in middle-income countries, they are still the most powerful and influential institutions of global governance.

To begin, cities within the global south are more likely to need aid from the IMF. The United States currently holds 1/3 of the votes within the IMF, as a result the decision making power over nations within the global south rest in the hands of the western world. This dynamic is problematic because the IMF’s, SAP’s programs only add to further economic and social resource depletion within developing cities. With little to none voting influence from persons within the global south, the “west” through the IMF will continue structuring loans from an “outsider” perspective. As an “outsider” the west is given control over people and resources in the developing world.

This essay aims to explore and critically analyze the impact of the global financial institutions such as the World Bank and International Monetary Fund (IMF). There was a discussion on reasons for the establishment of the institutions. An examination using various illustrations of the conditions these institutions impose on borrowing countries. Developing countries in the sub-Sahara Africa and, in particular, Senegal will be used to explore dealing with above institutions and their outcomes. It will also highlight reasons leading to the selected country applying for loan assistance. The identified conditions attached to loans provided and its impact on health, economic, environmental, political and cultural determinants. A conclusion will follow this.

nternational Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic suicidal condition in which they have to still depend on more loans or aids to survive and they would have to comply with any condition attached to the help, due to the urgent need of support.

The WTO has come in for fierce criticism from the anti-globalization, environmental and development lobbies. They argue that WTO:

From a Marxist’s standpoint, international economic Institutions have no advantages whatsoever. Chimni argues that the growing international institutions constitute an imperial global state in the making (Chimni, 2004). Chimni explains that creating a global state fulfills the interests of a transnational capitalist class within the international realm at the expense of the social classes in the developing and underdeveloped countries (Chimni, 2004). Chimni criticizes the institutions’ calls for cooperation and interdependence. He argues that institutions affect the sovereignty of states, leaving developing countries unable to control their domestic affairs (Chimni, 2004). He mentions that reforms are essential to face the capitalist dominance of international institutions. He concludes that with the help of a powerful global social movement, change is possible (Chimni, 2004).

The International Monetary Fund (IMF) and the World Bank have had enormous impact upon the world’s economies since their inception, after World War II. Although each of these organizations has a similar history, their role, objectives and funding are unique. These Washington DC-based organizations have drawn more than their share fair share of criticism as well as praise. Modern nations require thoroughly understand of these organizations. The IMF’s beginnings derived from two tragedies.

As an outcome of neoliberalism circumstances set by global institutions, such as the World Bank and International Monetary Fund (IMF), many nations have been in debt and in poverty since they