How these organisations shaped the development of the world.
In general all of these organisations co-ordinate with one another in terms of development, although usually the IMF & World Bank closely co-ordinate their policies together, sometimes with WTO involvement. The IMF and Work Bank part of new post-WWII economic order.
IMF (International Monetary Fund)
This is to promote financial stability, international economic co-operation and encourage economic growth. The person is charge has always been European.
The World Bank
Promotes international trade, foreign investment and poverty reduction. The person in charge has always been American.
For both World Bank and IMF, they have issued loans for development. Most of these loans have conditions, in exchange for development money, the developing country must open its economy, reduce government control/intervention and privatise industries. These were called ‘Structural adjustment programmes’. In some cases during times of economic crises, a bailout from these two organisations are needed. This policies are a part of the ‘Washington Consensus’ where the free neo-liberal market principles are said to be better at development, rather than government-led intervention and control.
