Imf And Wb Into Africa

Lending institutions like the IMF and World Bank, which are central to economic globalization, offer loans to developing countries with conditions. These conditions were set in order to “restore or maintain balance of payments’ viability and macroeconomic stability, while setting the stage for sustained, high quality growth,” according to the textbook. The conditions of the loans the IMF provided to Jamaica included deregulation policies. These policies eventually proved to be dysfunctional in the context of the Jamaican economy and hindered the

I discuss below major developmental challenges in Africa (by extension other poor countries) which have roots in contemporary imperial relations with the West. These include: debt burdens, structural adjustment programmes, operations of multinational corporations and external aid.

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.

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

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.

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.

The Washington consensus, which is composed of the International Monetary Fund (IMF) and the World Bank, has always imposed strict conditionality’s on developing nations whenever they seek financing from them. Such conditionality’s which often served and indeed were driven by western interests, included liberalization and deregulation. This East Asian approach, despite working perfectly, differed with the Washington Consesus on every single matter except the need for macro-stability.

The human development index is measurement used to assess countries based on three categories: life expectancy, education and gross national income per capita (UNDP, 2014,p. 2). According to the report by the Untied Nations Development Program, Ghana’s HDI value is ranked at 132 out of 187 countries in 2014. In a time period of 33 years from 1980 to 2013, Ghana’s HDI has been on a slow increase. Life expectancy increased by 8.8 years, years of schooling by 4.0 years and the GNI by 62.2 percent (UNDP, 2014, p. 2). Such increase in a period of 32 years can be seen as slow progress. In my opinion the introduction of structural adjustment policies have placed a blockade on Ghana hindering its human and social development. The government has been focused on repaying its debt to the IMF and World Bank to the point of where they have forgotten about the well being of its citizens.

2. A project of the IMF that created problems for Africa after they received it?

Every year, donors from the Organization for Economic Cooperation and Development (OECD) give billions of dollars in foreign aid, with the United States contributing a large percentage of this sum (Eischen 2012) (Figure A). However, the amount and way in which this money is handled has given rise to heavy criticism. Books such as Dambisa Moya’s Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa and the innumerable news articles lamenting the state of the corrupt bureaucracies of receiving countries not only discuss the inefficiencies of foreign aid but also accuse these programs of being harmful (Ayodele et al. 2005). One such article claimed that, due to inefficiencies and corruption, at least

Over three fourths of African states have pursued programs of economic reform through international financial institutions such as the IMF and World Bank. These financial institutions are centred in western states and push western ideas of economic structures, such as liberalization. Programs of economic reform enacted by these institutions have been viewed as a dominant source of influence, or power, over African economic policy formulation. These institutions are not only using the power of knowledge and the worlds acceptance of liberalization, produced by western schools of thought, these economy reforms also display the interconnectedness of economic, political and social power. It appears when African countries release one form of power the other two are relinquished as well. This paper will argue that because of western IR’s brand of knowledge, which promotes liberal economic ideals, especially the belief that free trade benefits all, the west is able to justify its intervening in foreign economies. Western IR’s monopoly over knowledge hold a powerful position where they posses both the power to define issues impeding upon developing countries and the position to act as the selfless savior assisting these countries. They are not truly assisting as much of their actions benefit western countries more than the country receiving help. This will be seen through examining the case of aid, particularly structural adjustment programs in Africa. The specific case study that

The International Monetary Fund (IMF) describes its mission as working "to foster global growth and economic stability." The IMF provides "policy advice and financing to members in economic difficulties, and also works with developing nations to

The world post World War II is in an economically more advanced state. The inception of the International Monetary Fund and the World Bank in 1945 had been extremely necessary in bringing temporary relief to the world. When the world was tottering at the heels of economic and social disorientation, courtesy closed economies and inward looking policies during the war, the above two institutions vowed to provide funds in the form of loans and aids to developed nations mainly to sustain tentative anomalies in the economy. This was considered to be an unprecedented move towards a long awaited path of economic globalisation which was yet to show its effects.

The international financial institutions (IFIs) are central pillars and the architects of the global economy. The world bank and IMF were founded and funded by the United Nations at that time towards the end of the second world war to build devastated world economy after the war and great economy collapse of the 1930s. The IFIs were to help the economy of the less developing countries (LDCs) to bring about growth, development and integration. In the scope of this paper, I have picked Zimbabwe to shine some light on what these global economic pillars are capable of doing.

Considering the international organizations all could be a complex function in terms of the World problems. This essay discusses the role of the International Monetary Fund and the World Bank positions in the World life. The essay will reflects the two organizations purposes, also provide an inside to the operation system, decision making, structure and shows some example for the failure or success of the institutions.