International Financial Institutions ( Ifis ) Are Central Pillars And The Architects Of The Global Economy

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1.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 states after the second world war to build shattered world economy after the war and great depression of the 1930s (socialist alternative,). The creation of the IFIs was to bring about a global economy after the “isolation economy” which some argue brought about the Second World War. The IFIs were to help the economy of the less developing countries (LDCs) to bring about growth and development, a phenomenon known as globalization. 2. A project of the IMF that created problems for Africa after they received it? After the establishment of the IMF and world bank “they…show more content…
Apart from Mexico, another country that suffered from IMF and World Bank assistance is Haiti. In Haiti, the IMF and World Bank blocked the government from raising minimum wage and then demanded the privatization of profitable companies. The IMF also insisted that the government cut government services by half in spite of a national shortage of teachers and health care workers and infant mortality running at near 10%. 3. Description of the IMF Project to Help Africa Crack Down on Illicit Diamond Trade Project and the negative outcomes This IMF project was to help 16 countries in sub-Saharan Africa that produce and deal in diamonds, gold, and precious minerals to strengthen their defenses against money laundering, smuggling, and terrorist financing. This technical assistance project which was the first move made by the International Monetary Fund to tackle the issue targeted countries where precious mineral exports account for a high share of GDP or total exports and formal financial systems are underdeveloped. Africa is one of the continents that produce an estimated $19 billion in gold per year and $6 billion in diamonds. But an unknown amount is laundered or siphoned each year for criminal purposes. Due to that IMF thought there could be

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