Monday, May 10, 2010

The World Bank and the International Monetary Fund

I am writing on the World Bank and Monetary Fund. The purpose of these organizations are to help fund give financial assistance to countries that need the assistance. The world bank helps loan money to countries to help these countries make there health system and education system better. These countries usually really are in need of a loan, they usually need the money to help the people in the country to achieve the basic needs of life.
The International Monetary Fund is there to help a country build up its economy by trying to secure financial stability, facilitate international trade, promote high employment, and reduce poverty. This International Monetary Fund helps a country more through trying to create a better economy and help the country make there own money. This organization does not meet the immediate problems as fast as the World Bank does but in the long run they do more in a less expensive way that the World Bank does

Next I will talk about if these countries are actually benefiting the countries they say they are helping. In the report Assessing World Bank Support for Trade they concluded that the World bank spent $38 billion financing trade programs since 1986. They concluded this helped to open markets but had not been effective in increasing exports and growth reducing poverty. The organization is causing inflation or higher interest rates.
The International Monetary Fund had been charge with accusations of supporting capitalist military dictatorships that are supportive to European and American corporations. They are also said to be creating higher government taxes to pay off government debt or cutting social programs. This contradicts what they are there for. They are there to improve the government social programs to help for fill the basic needs of the people. Does this make them just like another government sucking money from people. They also are said to be funding evil governments and there armies to allow them to take more control of the people.

There are a lot of skeletons in these organizations closets. I am personally wondering how much help these organizations are actually giving to these countries that are in poverty. I wonder if there making the rich richer and the poor poorer.

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