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Imf and World Bank Responsible for Economic Genocde

  • Date Submitted: 11/21/2014 06:06 PM
  • Flesch-Kincaid Score: 44 
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IMF and World Bank responsible for economic genocide.   Ahmed Raza

This article talks about how global organizations such as the IMF and the World Bank, which were created to bring people and countries out of poverty have in contrast have made the situation for those nations and their people worse. The article firstly gives a brief description about what the IMF and the World Bank are and what their role initial role was and how it has changed over time. Then we are given a insight on the long term goals of these organizations for example the 2015 MDG’s.

However it then talks about the negative impact of these organizations on developing nations, firstly it mentions how the process of debt collection, in order to help resurrect the economies has instead destroyed them. Massive debt collection destroys economic activity, increases unemployment and causes local businesses to go bankrupt, as they have to repay the debt to debtor countries and organizations. IMF’s sponsored reforms affect the labor market by regulating labor costs, which undermines the local consumer industry development by damaging market structures with harsh “development” policies, which in the long term limit the international market power of local markets. As these situations lead the closing down of local businesses it gives a chance to international organizations to take over, leaving local businesses the choice to join them or to go bankrupt. I personally agree with this because, increasing globalization has taken different TNC’s to different parts of the world, in search for cheap labor, resources and also global dominance, making me doubt whether this is part of their evil scheme.

Secondly it talks about how the intervention and loans provided by the IMF and the World Bank increases the amount of corruption that takes place in those developing countries. Not only has it prevented the people from receiving the aid, but has also managed to negatively affect the income distribution and...

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