Commercial Law Official Assignment.The World Bank and the International Monetary Fund.docx

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1The World Bank and the International Monetary Fund (IMF) have diversified meansand smaller aims within themselves which are all subsequently targeted at theircommon and major aim, which is to alleviate and at most eradicate poverty in poorand developing countries. The IMF aims at achieving this mainly through lending,providing surveillance and technical assistance. The World Bank through its twobranches IDA and IBRD attains this through public sector monetary policy, providinglow interest loans, interest free credit and grants in developing countries as well asworking to affect the policies of governments by providing macro-economic policyadvice, research and technical advice. Further, the two organisations engage inStructural Adjustment Programmes which are supposedly aimed at alleviating poverty.In the undertaking of these objectives, these two organisations have received mixedresults with more cases of failure than that of success especially in Africa. The majorcriticism which attributes to this has been that the organizations tend to imposepolicies on countries without first understanding the distinct characteristics ofcountries, which makes the policies difficult to carry out, unnecessary or even counter-productive.The World Bank and IMF hold the noblest objectives, the main one being thealleviation of poverty in poor and developing countries. It is not in the objectives thatthe defect lies but rather in the implementation of these aims. One, from the veryguiding principles highlighted in Global 1011gathers clearly that the objectives of theIMF consist of promoting international money co-operation, facilitating the expansionand balanced growth of international trade, promoting exchange stability, assisting inthe establishment of a multilateral system of payments and making its resourcesavailable to members who are facing balance of payments deficiencies. Theoretically,these objectives would work for the best for any nation where the workings to theseobjectives would be executed. However, as will be highlighted in the course of thisessay, the manner in which these objectives have been implemented has according tothe Levin Institute2been the cause of the most vociferous resentment towards IMFbecause they often involve very detailed changes in national policies, which areimpractical and subsequently counter-productive. In some instances corruption withinthe recipient governments tends to undermine the organisations’ efforts. Similarly, the objectives of the World Bank are quite enticing as those of the IMF andtheoretically quite beneficial. Practically, this is unfortunately not always the case.1. The Levin Institute, The State University of New York, Globalisation 101, pg. 5 2. The Levin Institute, The State University of New York, Globalisation 101, pg. 7
2It is also, in the implementation of these policies which is strikingly similar andsometimes intertwined with that of the IMF that the criticism lies. The IBRD aims at

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Term
Fall
Professor
N/A
Tags
International Monetary Fund, structural adjustment

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