The IMF &
The World Bank

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.


About VTM | World Reader | Globalization | Technology | Investing | Environment | Civil Societies