International Monetary Fund ( Imf ) And The World Bank

Global governance institutions, from the International Monetary Fund to the World Trade Organization, are little loved. They are often perceived as bastions of sclerotic mediocrity at best and outright corruption at worst. In the wake of the 2008 financial crash, Daniel W. Drezner, like so many others, observed the smoking ruins of the global economy and wondered the extent to which global governance institutions have affected the post-recession, international system.

Different organizations are formed worldwide but it is mostly their mandates that categorically define the role they play. Among the most recognized, organizations that follow under the control of United Nations get an upper hand and it’s particularly made possible by the powers and control these organizations possess. This article attempts to compare and contrast the United Nations Security Council with the World Bank drawing conclusions from their mandate, style of functioning, governance and organizational culture among the key elements considered. Although they have an international outlook, there are various features within the organizations that depict them as different while others reveal elements that they share and value in common.

Angry protesting, political upset, governments falling, privatization failing, and money lost are a few outcomes that influence the public opinion on the World Bank, and its involvement in many underdeveloped countries. While the World Bank claims that reducing poverty across the globe is its foremost priority, many opponents believe that it is responsible for increasing poverty. The World Bank is a multifaceted organization that loans money to government around the world for development.

The obvious question that one must ask, is how can it be that these top notch

Many governmental and non-governmental organizations argued that external constraint like high inherited levels of foreign debt have crippled in the capacity of low income countries to overcome poverty and that concessional lending’s are not enough. This lead to the ‘Enhanced Heavily Indebted Poor Country (HIPC)’ initiative in 1996 in collaboration with world bank to eliminate unsustainable debt in the world’s poorest and most heavily indebted countries.

The IMF (International Monetary Fund) and World Bank were both founded in 1944, during a UN conference held in Bretton Woods in the United States.

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

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.

Consensus, general agreement among policymakers and scholars, is a difficult task to achieve; however, John Williamson in 1990 claimed that Washington based institutions such as the United States Government, think tanks, and the International Monetary Fund had formed a general consensus regarding economic development polices in Latin America (Williamson 1990). He outlined a framework and described ten policy instruments that policymakers agreed were necessary to aid developing countries. The ten reforms that he mentioned included: fiscal discipline, public expenditures focused on health, education, infrastructure, tax reform, liberalized interest rates, competitive exchange rates, free trade policies, privatization, liberalization of

Indebted Poor Countries (HIPC) initiative in 1996. This has been seen as a failure due to the limited debt relief provided and its SAP requirements. Countries must successfully complete six years of structural adjustment before they become eligible for debt relief under HIPC. By the end of

The World Bank is an international financial institution and is a member of the United Nations development group. The World Bank was originally established as a single institution in 1944 at Bretton Woods, USA. The governments of USA and UK played an active role in the establishment of the World Bank. The idea of the Bank was conceived by John Meynard Keynes and Harry White. During World War 2, the business classes of Europe were either supporting the Nazis or were forced to flee them. Socialists and communists had high credibility because they were seen as the leaders of the Nazi resistance. In order to prevent leftists from coming to power in Western Europe, it was crucial for the US and UK to get the business classes of Europe back into power. This required the establishment of strong institutions which would promote policies favouring development of private businesses. The fear of a post war economic depression also fostered the creation of the World Bank.

The world witnessed the rise in Economy of several countries. As a result of which people became and rich and economically prosper. The International Organizations like the United Nations and its subordinate bodies exercised greater control over the World. The International bodies are responsible for the maintenance of World peace and to address several other issues which are affecting the countries. The brief description of the International bodies is as under;

The world witnessed the rise in Economy of several countries. As a result of which people became and rich and economically prosper. The International Organizations like the United Nations and its subordinate bodies exercised greater control over the World. The International bodies are responsible for the maintenance of World peace and to address several other issues which are affecting the countries. The brief description of the International bodies is as under;

The World Bank has two main goals that they aim to achieve by 2030, being:

According to their website (www.imf.org), the International Monetary Fund (IMF) 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. The organization was created in 1945 and is governed by and accountable to the 188 that make up its near-global membership. Some notable countries that are part of the IMF are the United States, Japan, and China.