The International Monetary Fund and World Bank were both formed at an international conference held in Bretton Woods, New Hampshire (USA) in June 1944. The conference participants were keen to establish a framework for cooperation and economic development that would lay the groundwork for a more stable and prosperous global economy.. Although that goal remains central to both institutions, their activities have evolved in response to the changing and emerging issues in the global economy.
[...] it was coined by Oliver Williamson, an economist who criticized the policies of IMF and World Bank as it is neo-Keynesian economics, and reputed to be a critical neoliberal. He created what are called the "ten commandments". Of these, the most important ones are: Austerity. In times of crisis states must tighten their belts, drastically reduce spending in the sectors of education, health, and grants made to the price of basic foodstuffs, and increase the tax rate. Through these measures they must attempt to reduce State budget deficit and to avoid debt, as it would be too heavy a burden to carry. [...]
[...] Stiglitz was a member of the World Bank until 1999and he tried to oppose the policies of the institution without success. He resigned soon after the Asian crisis. In his book critique from within” he expresses his discontent. According to him economists in international institutions are not equipped to manage crises in specific State. Thus the model that had successfully addressed the crisis of countries in Latin America was not effective in the countries of Southeast Asia. He said the IMF worsened the Asian economic crisis by causing a rise in interest rates and the imposition of reducing trade deficits of the States. [...]
[...] The World Bank supported the intervention of the state in development (1944-1980) A. The IMF: the abandonment of the plan in favor of the plan of Keynes The idea that was at the core of the IMF came originally from Keynes. It represented the interests of Great Britain during the negotiations for the economic reconstruction of the country. Keynes believed that Promoting international trade was the best way to prevent the spread of the crisis that Brittan was facing. He proposed the adoption of an international policy on the same lines as the policy he advocated for the policy of the states. [...]
[...] The IMF and the World Bank intend to apply the same methods to these companies that were tested during the crisis of Latin America. This decision is questionable because the causes of the Asian crisis are very different from the causes of the crisis in Latin America and policies adopted should therefore have been different. South East Asia had very good macroeconomic indicators. The states were very efficient, and there was a fairly low rate of inflation despite strong economic growth. [...]
[...] In 1971 the IMF lost its main function, which was to monitor the system of fixed exchange rate and was forced to find a new justification for its existence. In 1982 the outbreak of the debt crisis in the countries of South America provided it with an opportunity to prove its usefulness to world economy. B. World Bank: Large infrastructure projects in doubt The influence of the World Bank was restricted as there was a similar plan (the Marshall plan) in existence in Europe. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
