Imf And The World Bank

896 WordsApr 28, 20164 Pages
IMF and the World Bank were created after World War II. Rebuilding nations after the war was costly and this burden needed to be shared amongst nations. With global adherence in its agenda, UK and USA proposed the International Monetary Fund and the World Bank to help prevent nation in this rebuilding process. Having just experienced the Great Depression, they wanted a policy to help nations in certain crisis. One such policy was that countries that are in a financial crisis could request a short term loan from the IMF and the World Bank. These loans are tied to three mandated programs that the nation receiving the loans must employ. Although some critics say that the programs are too rigid and not nation specific, these required actions are necessary for a nation to change for the better. Some say that these loans are “costly and politically humiliating IMF-led bailouts” (The Economist, 2007). This essay will describe how nations can learn from their mistakes and become well prepared to face future crisis. Nations that have endured the three programs attached to the loans from the IMF will ultimately rebound and become once again financially stable and confident. In July 1997, Thailand experienced a financial crisis that required outside assistance. Few years before, investors outside of the country, were looking for emerging markets to invest in. They believed it was in the South East Asia. The countries were Thailand, Korea, Indonesia, Malaysia and the Philippines.

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