Question

THere are many who believe that institutions such as the World Bank and the International Monetary Fund create dependency issues as developing countries rely upon for aid without being required to address systemic issues. What role do you see global organizations taking in aiding the economic development of developing nations? Should nations be required to provide evidence of internal change before seeking financial assistance from outsiders?

Answer 1

The world bank and the IMF international monetary fund are institutes in the united nations system. they aim at raising the living standanrds of their memebr countries. the imf focuses on macroeconomic issues and the world bank focuses on long term economic developement and poverty reduction.

• their main aim is to establish a framework for development and economic cooperation
• the imf provides policy advice and development support to the economies
• helps make loans also solves balance of payments problems

the world bank

• promotes long term development and poverty reduction by providing technical and financial support
• it is funded by the member country contribution and bound issuance

the imf and the world bank provide financial support and assistance to fellow countries by applying a neoliberal ideology, an agenda as a precondition of receiving money

• for structural adjustments export oriented markets are encourages
• minimised role of the state
• privatisation is encouraged
• to attarct foreign investors
• adjusments like currency devaluation, fluctuation of interest. rates,flexibility of labor market
• the precondition make the matters worse for the developing countries and the poor countries where they are compiled to expoert more to meet the debt,price wars since resources from pooere countries become even more cheaper
• there is high dependency of the member countires on the imf and world bank
• a healthy open trading system is crucial for developemt
• developing countries can reform their policies and achieve rapid economic growth and strengthen the economy
• nations should be required to provide evidence of internal change before seeking financial assistance from outsiders in order to have a claer view and get proper guidance to reform the issues sothat the fianacial dependency would not be so high and may be the soluction could lie within and only by following the strategies of the developed nations economic growth could be attained without mcuh helpfrom the finanacial organisations