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Imf and world bank negative impact
Positive and negative impacts of IMF
Contribution of IMF in world economy
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Application: Critical Analysis
Much can be said about the International Monetary Fund (IMF) and the World Bank (WB). Beginning with the facts, both are international institution established after the Second World War to promote economic cooperation and development. They are part of the United Nations (UN) system, providing financial and technical assistance to countries around the world. Although membership is voluntary, almost all nations are members. Furthermore, both organizations have made critical contributions to ensuring and promoting global economic stability, development, and integration. Yet, despite their contributions the organizations are often criticized. Their achievements in aiding developing nations are viewed as ineffective and dependency generating, while the organizations’ contributions to the world’s economies are denounced as unappreciated, hindering, or interfering.
To gain a better understanding of the two institutions, the following assignment will briefly discuss the International Monetary Fund (IMF) and the World Bank (WB). It will provide an overview of the organizations’ missions, histories, funding, and policies. It will review criticisms leveraged against them as well as assess their achievements and contributions to development. Focusing on the issue of poverty, it will assess the organizations’ effectiveness and potential policy and program shortcomings. Concluding remarks will critically assess the significance and role of both agencies.
The International Monetary Fund (IMF)
The International Monetary Fund (IMF) was conceived in 1944 at the Bretton Woods Conference and officially established in 1945 (IMF, 2014). Its creation was motivated by protectionist and aggressive trade policies that have n...
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...www.cfr.org/europe/international-monetary-fund/p25303
Stiglitz, J.E. (2003). Democratizing the International Monetary Fund and the World Bank: Governance and Accountability. Governance, 16(1), 111-139.
Woods, N. (2001). Making the IMF and the World Bank more accountable. International Affairs Journal, 77(1), 83-100.
World Bank (WB). (2014). Home. Retrieved from http://www.worldbank.org/en/about/history
World Bank Operations Evaluations Department (WB OED). (2005). The Poverty Reduction Strategy Initiative. Retrieved from http://ieg.worldbankgroup.org/Data/reports/prsp_country_case_studies.pdf
World Development Movement (WDM). (2013). The World Bank/IMF. Retrieved from http://www.wdm.org.uk/category/issues/world-bank-imf
World Development Movement (WDM).(2005). One size fits all. Retrieved from http://www.wdm.org.uk/sites/default/files/onesizeforeall01092005.pdf
Poverty is not just an issue reserved for third world countries. Instead, poverty is a multifaceted issue that even the most developed nations must battle
Shah, Anup. “Poverty Facts and Stats.” Global Issues, Updated: 28 Mar. 2010. Accessed: 05 Apr. 2010.
Massachusetts Institute of Technology. (2000). The IMF and the World Bank: puppets of the neoliberalism onslaught. Retrieved April 05, 2014, from MIT website: http://www.mit.edu/~thistle/v13/2/imf.html
United Nations Development Programme. Poverty Reduction and UNDP. New York: United Nations Development Programme, Jan. 2013. PDF.
Eichengreen, Barry. Globalizing Capital: A History of the International Monetary System. Princeton, NJ: Princeton University Press, 1996.
Some of the prominent states that are consumed with poverty are Rwanda, Chad, and Democratic Republic of Congo. Rwanda is a landlocked, resource-poor country. The population is about 9.7 million, and 87 per cent of Rwandans live in rural areas. Population density in the country is the highest in Africa, with about 370 persons/km². The country is one of the poorest in Africa. Gross domestic product per capita was US$464 in 2008, and Rwanda ranked 167th out of 182 countries in the 2009 United Nations Development Program’s Human Development Index. Chad is also one of the world's poorest countries. In 2003 over 54 per cent of the population was living below the poverty line. For much of the population health and social conditions are inadequate. Chronic food shortages are widespread, and malnutrition levels among young children are high. These statistics are slightly higher in rural as oppose...
The theme of this essay outlines two things. One, the key elements of Bretton woods system and second, the characterisation of Bretton woods system by Ruggie as ‘embedded liberalism’, and how far he succeeds in it. The Bretton woods system is widely referred to the international monetary regime, which prevailed from the end of the World War 2 until the early 1970s. After the end of the World War 2, the need of international monetary framework to boost trade and economic; growth and stability, was important. Taking its name from the site of the 1944 conference, attended by all forty-four allied nations; the Bretton Woods system consisted of four key elements. First, to make a system in which each member nation has to fix or peg his currency exchange rate against the gold or U.S. dollar, as the key currency. Secondly, the free exchange of currencies between countries at the established and fixed exchange rate; plus or minus a one-percent margin. Thirdly, to create an institutional forum, so-called International Monetary Fund (IMF), for the international co-operation on money matters: to set up, stabilize, and watch over exchange rates. Fourth, to remove all the existing exchange controls limiting (protectionism) policies by the members, on the use of its currency for international trade. In practice the first scheme, as well as its later development and final demise, were directly dependent on the preferences and policies of its most powerful member, the United States. According to John Gerard Ruggie, 1982, this Bretton woods system of monetary co-operation represented the type of liberalism which characterise “domestic social economic stability along with a liberal trading order.” He referred this system as ‘embed...
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
Entering the 21st. Century – World Development Report 1999/2000. World Bank 2000. Oxford University Press. New York, NY 2000.
the effect that the work of the IMF and the World Bank have had on the
Joseph Stiglit’s focused on criticizing the International Monetary Fund (IMF) and how globalization makes the rich countries richer and the poor countries poorer. At first, I thought that the book was too technical for a beginner on the subject to understand, but he was able explain well the contents of this book. This book is very informational for people, who are into globalization and economic development. His sharp critiques on globalizations, particularly on the International Monetary Fund (IMF), that was based on his own experiences. In this book, he emphasized the effect of globalization on the Least Developed Countries as well as on the Developed Countries. I chose On Globalization and its Discontent because aside from the striking title of the book, it also the sincere opinions of Joseph Stiglitz. Also, I chose this book aside from it being required, I figured out that this book will be of good help for me in the near future – if I want to pursue this track – with all the information that were given by Stiglitz.
After the failed International Trade Organization, Rodrik discusses the Bretton Woods Agreement, the transition from the General Agreement on Tariffs and T...
Many critics and even followers of the IMF do not even know what the IMF really is. It is not a development or even a central bank. It is a credit union. It pays interests on deposits it receives from member nations. The IMF lends money to members having trouble meeting financial obligations to other members, but only the condition that they undertake economics reforms to eliminate these difficulties for their own good and that of the entire membership. Some people believe that if the IMF tells a country to do something, they must do it. This statement is false. The IMF has no authority over the domestic economic policies of its members. The IMF is a cooperative institution that 182 countries voluntarily joined because they see the advantage of consulting with one another to maintain a stable system of buying and selling their currencies.
One of the contemporary challenges facing policy makers is the incidence and spatial concentration of poverty. The multiple dimensions of poverty includes: levels of employment, education, incidence of poor health, poverty levels, and macroeconomic conditions. In this report we will examine two of them: employment rate and education to find out if countries can reduce poverty level by increasing employment rate and increasing number of people who finish at least upper secondary education. Moreover, we will find out what is more important to increase employment rate or increase number of people who finish secondary education to decrease poverty level in the countries. To find out all these things we will summarise the information, using descriptive statistics, test relationship between the variables using correlation and regression which will answer our questions.
Indeed without globalization, the benefits of development finance could not have been possible. Globalization has many other consequences, side effects, by-products, and implications, which some authors (see Bhagwati 2004; Stiglitz 2003; Sodhi 2011; Bishop et al. 2011Bishop et.al. 2011) have discussed. These include aspects relating to, but not limited to economic globalization, as well as to the environment and concern for the degradation of the environment, the issues of exploitation, poverty, social and demographic inequalities, and inequalities in income distribution, all of which, they believe globalization has directly and indirectly led to. Some of the issues attributed to globalization are actually not consequences, from the point of view of cause and effect, but are more by-products of the way globalization has progressed in all its dimensions, (i.e. economic, cultural, interaction among individuals and groups of individual in different countries). The proliferation of organizations in the civil society, especially non-governmental organizations, is one of these by-products. Their intervention in the economies of developing countries is another by-product of globalization. The role which these organizations play in situations around the globe and more so in