1)International monetary fund
International Monetary Fund (IMF) was created after the Second World War to assist post-war reconstruction through regulating exchange rates and lending money. However, its role has changed over time, refocusing on aid to developing countries through technical advice and loans. Although its mission sounds important, the actual results of IMF interventions remain questionable. While the proponents of IMF suggest that the strict measures suggested by IMF are necessary for developing countries, some scientist believe that those measures restrain economy and prevent it from further growth. Moreover, IMF funding is considered counterproductive, since it encourages doubtful investments. Although, there is no evidence to prove the correlation between IMF intervention and economic performance, the existence of IMF is important for economic stabilization. However, IMF strategies should be reconsidered in order to promote efficiency and limit financial bailouts.
2)World bank
World Bank (WB) is an important institution, which aims to provide financial assistance for developing countries on a more favourable terms, than commercial banks, in order to achieve globalization, that is sustainable and inclusive. WB consists of two parts: International Bank for Reconstruction and Development, which assists credit worthy countries and the International Development Association, which focuses on the poorest countries of the world. Although the significance of the WB is apparent, U.S. is currently considering a reduction of WB funding in response to the recent economic recession. In light of the potential funding cuts and due to the consequences of the economic crisis, WB should both provide additional assistance to the developing countries in order to sustain economic recovery, and restructure its programs so that they can function with a smaller budget.
References
International Monetary Fund. (2011). Overview. Retrieved from
http://www.imf.org/external/about/overview.htm
