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CHARISMA UNIVERSITYMASTER OF BUSINESS ADMINISTRATIONProject:INTERNATIONAL ECONOMICSTopic:Criticisms of Decision Making at IMF and World BankPrepared by:Omesh ArjuneSubmitted to:Dr. Jason CadeCourse No:MBA 515Dated:2022-04-10
Criticisms of Decision Making at IMF and World BankDescribe the criticisms about decision making at the IMF and the World Bank.In his work on international economics, Gerber (2017) noted that organizations such as theInternational Monetary Fund (IMF) and the World Bank are “international economic institutions…that are an important feature of the world economy”. It adds that when social scientists try toexplain the increasing integration of national economies after World War II, one of the keyexplanations is the increased stability and reduced uncertainty that these institutions helped tocreate in the post-war world. Yet, that author added, “Nevertheless, as international economicintegration has increased, these organizations have come under more scrutiny and received muchcriticism” (p.41).So, to understand criticisms of the IMF and World Bank, one must first endeavor to understandtheir historical context. The World Bank Group (WBG, or Bank) and the International MonetaryFund (IMF, or Fund) are twin intergovernmental economic institutions that were founded in1944. Since then, they have been influential in shaping the development and financial structureof the present world order. Basically, they were first created with the aim of rebuilding theworld’s international economic system in the aftermath of the devastations of World War II(WWII). The key decision-makers behind the establishment of these so-called Bretton WoodsInstitutions (BWI) were mainly the United States (US) and the United Kingdom (UK). Theseorganizations have been influential, for better or worse, due to the significant geopoliticalstrength of their backers. But while the organizations and their framers may present themtogether as an apolitical effort to rebuild the world economy after WWII, some critics areinclined to view them as “an effort to defend or expand the reach of western capitalism in theface of a potential challenge from the Soviet Union, and to promote US interests in particular”(Bretton Woods Project, 2019).A number of criticisms have been levied on the IMF and World Bank as international economicorganizations. A number of these are listed under “criticisms of international institutions” in thework of Gerber (2017). This author reported that “one of the strongest complaints aboutinternational institutions is that they violate national sovereignty by imposing unwantedeconomic policies. For example, when a country experiences a financial crisis, the IMF is often
the only potential source of outside help. Once engaged, however, the IMF imposes conditionsthat sometimes amount to a complete rearrangement of national economic policies” (p.57). For

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