How Imf Has Assisted in the Underdevelopment of Third World Countries

Within the Global Political economic, there have been a number of considerations about whether or not the Washington consensus and the “Post-Washington Consensus” (Stiglitz, 1998; 2004) approach to development are fundamentally different. Critics within the International Monitory Fund (IMF) and World Bank suggest that both approaches are one in the same it is thus variously labelled as the

The International Monetary Fund (IMF) was created in the mid-1940s as a direct result of the chaos created by the individual central banks before and during the Great Depression. With the advent of economic globalization, it became clear that the uncoordinated policies of individual central banks was becoming a hindrance to global growth and financial stability. In December 1944, the IMF formally came into existence with 29 members, each agreeing to cooperate on the international stage to stabilize exchange rates and

In an effort to bring an end to world poverty the World Bank and IMF (International Monetary Fund) were established in 1944. Consisting of members from 44 nations “The Bank and the IMF are twin intergovernmental pillars supporting the structure of the world's economic and financial order”(Driscoll, 1996). In other words they are international economic organizations that grant loans to third world countries for development programs.

This trend was popular in colonial times and has survived due to help from international organizations such as the IMF and the World Bank. One such way this that has been encouraged is through the Washington Consensus. The IMF and World Bank implemented the Washington Consensus, a set of fixed ideas about international trade and economic development, through structural adjustment programs which were mandatory for countries if they wished to borrow money from either of the organizations (Nederveen, 2004, p. 11). In conjunction with structural adjustments to continue the dependency theory, the United States uses both the IMF and the World Bank as tools to further their foreign policy and to support US aims and polices (Finnegan, 2003, p. 43). These programs were supposed to reduce poverty and facilitate growth but really just ended up screwing over many countries. Additionally, they were really just ways for America to assert their control under the guise of an international organization providing support to developing countries’ economies (Finnegan, 2003, p. 42). Ultimately structural adjustments were used to implement policies that the United States thinks is best for the world and promote American values (Manzo, 1999, p. 112). The World Bank and the IMF listen to the rich countries and implement policies that they believe are best for those countries that are in development while creating a situation that contributes to the continuation of a cycle of dependency (Manzo, 1999, p. 110). Ultimately neoliberalism has created a global regime that promotes dependency on the United States and allows them to decide what is best for countries that are still developing (Nederveen, 2004, p. 7). In the end, the fact that neoliberalism has many of the same contradictions that

The IMF is interested in trade creation and has the power to lend money with conditionality (Rose 682). According to the IMF website, they exist for 3 purposes:

Ever since organizations and agreements like the North American Free Trade (NAFTA) and the International Monetary Fund (IMF) were created around the end of World War 2 to supposedly help the Third World nations to establish better economies and governments, they have only done more harm than good for these nations. These third world countries end up becoming exploited and extorted, forced to become dependent on the big international organizations like the IMF because of the exorbitant interest rates charged on them, thus they remain forever in debt. The accumulation of debt then allows the IMF to have more voice over how the indebted countries should be shaped and how they should run their economy. What ends up happening then is that their

The International Monetary Fund is a major international economic institution that was established in 1994 to manage international monetary relations (FLS, 327). International leading programs such as the IMF provide financing to developing countries that are facing financial problems that threaten their economic growth and provide them with loans in order to boost the productivity of their countries. The IMF includes both lending and borrowing countries and all members are

On the other hand, the IMF was performing a very different function. As the center of the post-war international monetary system that was based on the fixed exchange rate, the IMF played a role as a guardian of the international monetary system and helped the member states to stick to the rules of the system. These processes were known as credit operations that helped both developing and developed countries to avoid unexpected monetary frustration (Moffitt 32).

The Bretton Woods Conference in 1944 spawned two IFIs, the International Monetary Fund (IMF) and the World Bank, in order to rebuild a

As the world economy begins to grow and develop, systems have been put in place to ensure a standardized unit of monetary measure to ensure fair trade between developing nations. The IMF or international monetary fund, is an organization that manages the exchange rate of currencies utilized in the international market, offers policy advice and gives loans to promote the countries prospering in the global economy; by the World Bank was “established to promote long-term Economic Development” and promote a better standard of living by “providing Technical and financial support” to Affiliated countries ("The IMF and the World Bank"). Together these facilities frequently collaborate to promote global economic success by promoting and

The IMF was established in 1945 by the United Nations to improve the health of the world economy. It was designed in order to avoid the catastrophic economic policies that had contributed to the Great Depression in the 1930s. The IMF is an international organization comprised of 184 member countries. It was established with the goal in mind of promoting international monetary cooperation in order to stimulate economic growth and provide temporary financial assistance to countries to help alleviate problems associated with debt. Acting as the central institution of the international monetary system, the IMF?s main objective is to prevent crises in the system by advising countries to implement reliable economic policies. It also provides funds that

The International Monetary Fund and the World Bank were created in 1944 at a conference in Bretton Woods, New Hampshire, and are now based in Washington, DC. Now it is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Nearly all members of the United Nations are members of the IMF with a few exceptions such as Cuba, Lichtenstein and Andorra. (About the IMF:IMF Website) The IMF was originally designed to

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.

To start, the original goal of the International Monetary Fund was to “monitor and help maintain pegged but adjustable exchange rates, primarily between the countries of Western Europe and the United States.” (Vreeland and Raymond). This international organization came into being as a part of the “Bretton Woods Agreements.” (Vreeland and Raymond) The “Bretton Woods Agreements” was signed by 44 countries in order to establish both the IMF and the WB on July 22, 1944. Today, the IMF is a near global organization with one hundred eighty nine members, almost as much as the United Nations itself. (Vreeland and Raymond)

The Economic Issues Series aims to make available to a broad readership of nonspecialists some of the economic research being produced on topical issues by the International Monetary Fund. The series draws mainly from IMF Working Papers, technical papers produced by IMF staff members and