This includes the social and economic impact these policies have on the population of countries who avail themselves of financial assistance from these two institutions, and accountability for these impacts. Issues of representation are raised as a consequence of the shift in the regulation of national economies from state governments to a Washington-based financial institution in which most developing countries hold little voting power. IMF packages have also been associated with negative social outcomes such as reduced investment in public health and education.
Maverick Updated February 12, — Both organizations were established as part of the Bretton Woods Agreement in The IMF also provides loans and helps countries develop policy programs that solve balance of payment problems if a country cannot obtain financing sufficient to meet its international obligations.
The loans offered by the IMF, however, are loaded with conditions. Often, a loan provided by the IMF as a form of "rescue" for countries in serious debt ultimately only stabilizes international trade and eventually results in the country repaying the loan at rather hefty interest rates.
For this reason, the IMF has many critics worldwide. The World Bank The World Bank's purpose is to aid long-term economic development and reduce poverty in developing countries.
It accomplishes this by making technical and financial support available to countries.
The bank initially focused on rebuilding infrastructure in Western Europe following World War II and then turned its operational focus to developing countries. World Bank support helps countries reform inefficient economic sectors and implement specific projects, such as building health centers and schools or making clean water and electricity more widely available.
World Bank assistance is typically long-term, funded by countries that are members of the bank through the issuing of bonds. For related reading, see: What Is the World Bank?Sep 30, · The WTO, IMF and World Bank jointly called for new rules to address the expanding role of electronic commerce along with investment and services trade in the 21st century.
The World Bank and the IMF often attach loan conditionality’s based on what is termed the ‘Washington Consensus’, focusing on liberalization—of trade, investment and the financial sector—, deregulation and privatization of nationalized industries. One group, for example, called 50 Years Is Enough, argues that the IMF, World Bank, and the World Trade Organization (WTO) are anti-democratic institutions, responsible for the impoverishment of the developing world and benefiting only rich countries and multinational corporations.
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The World Bank and the IMF often attach loan conditionalities based on what is termed the ‘Washington Consensus’, focusing on liberalisation—of trade, investment and the financial sector—, deregulation and privatisation of nationalised industries.
The WTO IMF and World Bank The Uruguay Round in was created to further reduce trade barriers. The result was the creation of the World Trading Organization (WTO). The main goal of the WTO is to police the international trading system.