The Impact Of Transnational Industries And Global Financial Institutions Such As The World Bank And International Monetary Fund

The Impact Of Transnational Industries And Global Financial Institutions Such As The World Bank And International Monetary Fund

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This essay aims to explore and critically analyse the impact of transnational industries and/or global financial institutions such as the World Bank and International Monetary Fund (IMF) in the sub-Sahara Africa. It will explore the impact on health, economic, and environmental, political and cultural determinates on developing countries. A country in the sub-Sahara Africa region will be used as a prime example in dealing with some of the above institutions and their outcomes, and a conclusion given.

The World Bank and the IMFs strategies and its impacts in the sub-Sahara region have come under scrutiny. This has prompted concerns of the region 's development with some Africans and international organizations questioning if those strategies were to improve or mired development and standards of living in the region. Some critics have argued, that the World bank and IMF strategies employed by African countries in order to either get a loan or pay off their debts to IMF has led to high unemployment and poverty therefore hindering sustainable development (Oya,2006). Though, many studies have explored the effects of IMF condition attached to the debts, not often do they analyse the human right consequences of the loan receiver (countries). However, Skogly (2001); Limpach and Michaelowa (2010) argued that both World Bank and IMF are more interested in implementation strategies as opposed to the human rights. To ensure that the countries are economically stable leader ought to take some responsibilities for strategies that they implement internally. Nevertheless, some political economists have argued that the continents underdevelopment is due to how the states were created with their political and economic link with industrialised nat...

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...ty pricing and other outside shocks (draught) leading to a sequence of famine in Senegal. These affected the agricultural sector but also increased external debts which prevented the country not meeting repayments to its creditors. This pressed the then government to seek financial assistance from the World Bank and IMF as highlighted by (McGillivray and Ouattara, 2005). In order for Senegal to receive financial assistance, the IMF and World Bank required them to make some economic changes known as the SAPs. The changes include cutting public expenditure, privatization of state assets, removal of subsidies for farmers and on essential food items, trade liberalization and devaluation of currency (Adams, 1992). In agreement to implement those changes, Senegal received its first loan in 1984 and has since received a further 19 dealings as at 2003 (Kingston et al, 2011).

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