The International Financial Institutions ( Ifis )

1084 Words Sep 18th, 2016 5 Pages
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.

In 1980s, Zimbabwe’s economic growth rate averaged about 4% a year. Its exports were increasingly manufactured goods, debts were regularly repaid, food security was attained, and education and health services were greatly expanded by major increases in government spending. (World Bank Data, 2016). Zimbabwe implemented structural adjustment in 1991 after a long political reform that started after it gained its independency. A land reform officially began with the signing of late 1980s, as an effort to more equitably distribute land between black subsistence farmers and white Zimbabweans of European ancestry, who had traditionally enjoyed superior political and economic status. The equitable distribution of land never occurred as the government of Zimbabwe accused Great Britain failing to fulfill its commitments in timely manner. Robert Mugabe decided to do go alone without England participation.…
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