International Monetary Fund And The World Bank - 1561 Words

THE WORLD BANK AND IMF - HIPC International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic suicidal condition in which†¦show more content†¦In order to rebuild Europe after a devastation second world war, common sense would tell you that the institutions would not like to deplete its resources. So the question of exploiting loan seekers or poor countries who later became part of the countri es seeking financial help from the world bank and the IMF. The main function of the International Monetary Fund according to IMF fact sheet (2016, March 23) â€Å"To ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other†. Simply put, the organization beginning with 44 countries and now 189, has one aim, to make sure there is a global or international stability in the world economy by monitoring resources and exchange rates across goods and services trading among member countries and ensuring that there would not be an economic collapse in respective member countries. Same IMF factsheet do more elaborating on their term surveillance as stated as â€Å"To maintain stability and prevent crises in the international