The Impact Of Global Financial Institutions Such As The World Bank And International Monetary Fund ( Imf )

International development and underdevelopment are major issues in global society today. John Perkins’ book The New Confessions of an Economic Hit Man is a very critical account on the activities of private corporations such as MAIN and international financial institutions such as the World Bank and the International Monetary Fund and how many actions are based on self-interest, corruption and greed. The book does an exceptional job at giving us an insider’s perspective on why debt induced developing nations are in a constant state of underdevelopment from the corrupt actions of Economic Hit Men and their colleagues Jackals who deal with the dirty side of the business and political economics. Global economics and debt have

Every year sub-Saharan Africa receives around $134bn in loans, foreign investment and development aid, according to the UN. Nonetheless, sub-Saharan Africa is still the poorest region in the world. For many years the international community has debated over the reasons why every year billion and billions of dollars are not taking sub-Saharan Africans out of poverty. Three major groups have prevailed in the discussion. First, the people who totally blame Africa for not doing its job right, completely forgetting that most of the funds are not administrated by Africans. Second, the people who believe that even though aids are not working, the international community should keep investing funds in Africa even if is failing; one day they will work.

This never-ending cycle of debt is the reality for most, if not all of Third World countries. In the 1970’s, Western banks loaned out huge sums of money to Third World nations with the intention of one day making profit. And they succeeded.

However, although globalization has helped several countries, "in some developing countries, foreign aid and investments are not relieving widespread poverty, and policies forced by global institutions like the International Monetary Fund (IMF) and World Bank have created more harm than good, because the policies are based on models constructed by the developed countries and are not customized for each developing country 's situation" (2003).

First, let us examine how economic policies like the structural adjustment policies implemented by the IMF affect a country. A great example of this is detailed in Ault and Sandberg’s “Our Policies, Their Consequences”, where both authors explore how seriously the structural adjustment policies changed the economic state in Zambia. As these authors point out, the terms of the loans “reflect the economic and political interests and values of the world’s wealthiest nations (470)”. It is seen here already that that does not bode well for Zambia. One clearly can see that globalization is just another way first world nations still colonize the world, but instead through means of economic and trade conquests. Now, the article continues on to talk about the kind of changes that the IMF implemented on Zambia: they wanted them to devalue their currency and stop supporting many domestic programs, social welfare programs, and fire federal employees and instead they wanted them to focus on increasing their exports for the global market. And what are changes without its consequences? Because the IMF favored the growth of international markets, the local economy in Zambia suffered greatly. Devalued

The success of development institutions such as the World Bank has been questioned for decades. This paper seeks to evaluate the effectiveness of World Bank programs in sub-Saharan Africa. The question to be answered is: Hurting or helping?: Is the Highly Indebted Poor Country Initiative in sub-Saharan Africa effective or ineffective? This paper will evaluate the efficacy of the World Bank’s Highly Indebted Poor Country (HIPC) Initiative in Uganda, Senegal, and Ghana. Using secondary analysis, we examine two research studies conducted by the World Bank to draw conclusions about HIPC’s effectiveness. We expect to find that the World Bank program has been largely effective in sub-Saharan Africa.

Failure in development is a lack of sustained periods of economic growth and stability, and an increased dependence on foreign aid. For example, forty five per cent of people in Sub-Saharan Africa still continue to live in poverty (About Sub-Saharan Africa). Secondly, the inability to meet eight of the Millennium Development Goals constitutes a failure in promoting development within the last fifteen years (The Millennium Development Goals 2014). Furthermore, World Bank prescriptions have not promoted sustained growth independent of foreign involvement by “[raising] Southern output” (Mosley 1949). The World Bank’s “measured ability to trigger sustained growth in developing countries has been poor […] particularly […] in the poorest countries” (1951). This disparity in flow of investments to developing

The foundation of Moyo’s thesis is that foreign aid flooding Africa for the last half century has not worked and has actually harmed Africa’s growth more than it has helped. Moyo’s references that many countries that have substantially less aid than many of the African countries yet aid have

How does the rivalry between the IMF and the AIIB impact the global financial markets?

Both institutions, the World Bank and the International Monetary Fund, were established more than fifty years ago; and the foundations of both were expected to play roles in stabilizing the frustrated global economy and aiding post-war European countries as well as other developing countries for economic progress. In the first three decades, both institutions had their own respective functions and extensively engaged in different economic and financial activities. In general, the World Bank primarily concentrated on making long term loans to finance infrastructural projects in developing countries, as the IMF mainly provided economic consultation as well as short-term loans to both

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

Harvard Business School’s Case Study “Aid, Debt Relief, and Trade: An agenda for fighting World Poverty” outlines the steps, and missteps, that the world community has taken since World War II to address the efficacy of international assistance. The study focuses on international financial institutions (IFIs) and their ability to help poor nations break out of poverty and the possible obligations of rich, developed countries to assist the heavily indebted poor countries (HIPCs). Additionally, the study seeks to see if this assistance has been and can be parlayed into growth and investment for the HIPCs.

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

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

The financial institutions allocate financial aids to countries according to their criteria and how well their public institutes operate or perform. This leads to pressure on the global south, leading to governance conditionality which many countries are not so happy about it. For instance Kenya had been given five times aid without any result of progress. Until 2000 IMF bank actual withheld aid from them after a court hearing about the anti-corruption authority. The challenges that global south face is the need for good governance. (Glennie,J, 2008).