The
IMF and the World Bank
The
IMF is an international organization of 184 member countries.
It was established to promote international monetary cooperation,
exchange stability, and orderly exchange arrangements; to
foster economic growth and high levels of employment; and
to provide temporary financial assistance to countries to
help ease balance of payments adjustment.
The
World Bank is not a “bank” in the common sense.
It is a development Bank that provides loans, policy advice,
technical assistance and knowledge sharing services to low
and middle income countries to reduce poverty. It is one of
the United Nations’ specialized agencies, and is made
up of 184 member countries. These countries are jointly responsible
for how the institution is financed and how its money is spent.
The World Bank Group’s mission is to fight poverty and
improve the living standards of people in the developing world.
The Bank promotes growth to create jobs and to empower poor
people to take advantage of these opportunities.
One
of the main criticisms regarding the International Monetary
Fund and the World Bank has been their lack of awareness of
the problems and issues surrounding the country they are trying
to help before they do help them. Many student organizations
and human rights organizations say, “The IMF and the
World Bank prop up regimes that condone sweatshops and pursue
policies that bail out foreign leaders at the expense of local
economies.” Many of the criticisms are also directed
towards the notion that big businesses will roll in the money
while putting the “little guys back in their shacks,”
and this is a policy that both the Bank and the IMF have tried
to implement in order to further the economy of countries.
You
make the decision. How do you view globalization or the policies
of the IMF or the World Bank? Visit these and more of our
Great Links on Globalization to educate yourself about the
issues:
IMF
Speaks on Globalization
World
Bank Speaks on Globalization
Source:
Business Week - 24 Apr 2000 I, The World Bank
Group, and the International Monetary Fund.
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