...The World Bank was created at the 1944 Bretton Woods Conference, along with three other institutions, including the International Monetary Fund (IMF). The World Bank and the IMF are both based in Washington DC, and work closely with each other. Although many countries were represented at the Bretton Woods Conference, the United States and United Kingdom were the most powerful in attendance and dominated the negotiations.[7]:52-54 Traditionally, the World Bank has been headed by a citizen of the United States, while the IMF has been led by a European citizen. 1944–1968 Before 1968, the reconstruction and development loans provided by the World Bank were relatively small. The Bank's staff was aware of the need to instill confidence in the bank. Fiscal conservatism ruled, and loan applications had to meet strict criteria.[7]:56-60 The first country to receive a World Bank loan was France. The Bank's president at the time, John McCloy, chose France over two other applicans, Poland and Chile. The loan was for US$250 million, half the amount requested, and it came with strict conditions. France had to agree to produce a balanced budget and give priority of debt repayment to the World Bank over other governments. World Bank staff closely monitored the use of the funds to ensure that the French government met the conditions. In addition, before the loan was approved, the United States State Department told the French government that its members associated with the Communist Party would...
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...(1999). "The death of the Washington consensus?" World Policy Journal 16(3): 79-88. Cleary, S. (1989). "Structural Adjustment in Africa." Trocaire Development Review 1989: 41-59. Dollar, D. and A. Kraay (2001). Trade, growth, and poverty, World Bank, Development Research Group, Macroeconomics and Growth. Escobar, A. (1992). "Culture, economics, and politics in Latin American social movements theory and research." The making of social movements in Latin America: Identity, strategy, and democracy: 65-82. Fine, B. (2002). "Economics imperialism and the new development economics as Kuhnian paradigm shift?" World Development 30(12): 2057-2070. Godard, P.-P. K. and J. H. Williamson (2003). After the Washington Consensus: restarting growth and reform in Latin America, Peterson Institute. Gore, C. (2000). "The rise and fall of the Washington Consensus as a paradigm for developing countries." World Development 28(5): 789-804. Hamilton, C. (1989). "The irrelevance of economic liberalization in the Third World." World Development 17(10): 1523-1530. Harriss, J., et al. (2003). The new institutional economics and Third World development, Routledge. Helleiner, G. K. (1992). "The IMF, the World Bank and Africa's adjustment and external debt problems: An unofficial view." World Development 20(6): 779-792. Husain, I. and R. Faruquee (1994). Adjustment in Africa: Lessons from country case studies, World Bank-free PDF. Lal, D. (2000). The poverty of development...
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...Globalization Has Increased Poverty Although the concept of globalization is very recent, it has existed throughout the history. Globalization began to take greater height from the Industrial Revolution 200 years ago in England which was the most developed countries in the world. Technological and political changes have changed the meaning of globalization. Today, the term globalization is defined as “the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications. It is the social, political and economic integration that comes with the increased flow of trade, people, capital, and ideas” (Steger). The purpose of this essay is to show how globalization has increased poverty and affected some countries and people’s lives. While many people argue that globalization has reduced poverty; others, has disagree because there are facts that show clearly how the rate of poverty has increased. According to Sachs, Professor of Health Policy and Management at Columbia University, poverty is the result of “low productivity per worker, which reflects poor health, lack of job-market skills, patchiness of infrastructure (roads, power plants, utility lines, shipping ports), and chronic malnutrition” (Sachs). In many countries, the economic situation is going from bad to worse. Poverty has been rising steadily “from 21% in 1984 to 40% in 2002” (Nissanke). Sachs said that every day more than 20 000 die of dire...
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...4a. Suggest reasons for the variable progress towards reaching the Millennium Development Goals shown in figure 4. (10 marks) Millennium goals are a series of eight objectives agreed by 189 nations set to be achieved by 2015; these goals include the elimination of poverty and hunger, improvements in primary education, gender equality, child mortality rates and maternal health and finally work towards combatting HIV, AIDS and other diseases. From figure 4 we can see that each country is at various stages of achieving the goals or not in some cases. An example of a succeeding country is Brazil, which has achieved all but two of the 5 goals by 2007 and is very likely to achieve the remaining two by the 2015 deadline. In contrast India is doing not so well with the unlikelihood of achieving any of the goals by the 2015 deadline (or however for a matter of many reasons no data has been issued). India may be in this state because of the really large population so its difficultly for any progress to trickle down from the richer to poorer areas, also the recent subjection to natural disasters postpone any attempts at achieving the goals. As we can see 3 out of the 4 countries are having difficulty at achieving goal 4, (combating HIV/ AIDS, malaria and other diseases). All are either not likely, no data issued or maybe likely to achieve it as only Brazil has accomplished it. This may be because of cultural taboos of not wanting to discuss and solve these diseases, however with enough...
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...all citizens living in a poor nation are poor? The answer is ‘NO’. The wealth in a under developed / developing nation is skewed. Almost 80% of the wealth is in the control of say 20% of the population. The majority of the population do not have access to essentials for a decent living and live in abject poverty. One of the biggest factors is ‘Corruption’. It is the cancer eating into the vitals of the society. It has permeated into all facets of life, affecting the poor and voiceless. The common man with no money power cannot think of getting any thing done in the developing world, without having to pay a bribe. This has created a parallel black economy sucking money out of the taxpayer and enriching the pockets of the rich. Money is stashed in tax havens abroad. The Heads of Commonwealth nations at their mini-summit on 9 and 10 June, 2008 have stated that “Global institutions such as World Bank, IMF, and UN must enjoy legitimacy from their member countries and the international community. They must also be responsive, with the interests of all members, especially the smaller and poorer, being taken into account. The activities and governance of these institutions must be flexible, they must respond to new challenges,...
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...with 89 MFIs representing 42 countries to reach out to poor entrepreneurs to help them create a sustainable living for themselves. Although lenders receive no actual financial return while assuming all the risk of default, Kiva remains successful because of the intense emotional return that is deeply embedded in every transaction. Kiva creates value by leveraging their partners’ strengths Kiva has developed its marketing strategy by partnering with some of the most prominent online advertising and networking websites, including Google, Yahoo!, YouTube, Facebook, and MySpace. Through these social networks, as well as through blogs and online merchandising, Kiva has been able to spread its message and brand image to countries all over the world. Kiva’s strategy proves extremely effective in the Sudan There is no silver bullet that will end poverty, but we believe that Kiva’s approach is excellently suited to alleviate the pain and suffering in Sudan. Some reasons for this include Kiva’s ability to: • Bypass an unreliable government. Since its independence in 1956, Sudan has only experienced 11 years of peace. As a result, the...
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...Globalization and Bangladesh According to Oxford Dictionary “Globalization is the fact that different cultures and economic systems around the world are becoming connected and similar to each other because, of the influence of large multinational companies and of improved communication”. According to Wikipedia (an web encyclopedia) Globalization refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres. Shahzaman Mozumdar (IT Professional and Freedom Figher) says, "Globalization evokes different feelings to different people. Some look at globalization as "the panacea,"-the elixir that will eradicate all poverty, remove disparity, and enable the global citizens to enjoy a decent lifestyle-the lure of globalization. Others view globalization as "the evil" that will further enslave them to the rich” In the broadest sense, Globalization implies integration of economies and societies across the globe through flows of technology, trade and capital. Integration of production, accelerated cross-border investments and more trade are the logical outcomes of this process. It is a phenomenon of 21st century. When I think of globalization in the context of Bangladesh, I think of a person like Hosne Ara Begum, a 40-year-old garments worker at Dekko Apparels Ltd. Hosne Ara, living with her unemployed husband and two children, was driven out of her village in Comilla because...
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...Essay Question: Illustrate your answer with s In this essay I hope to go through the strengths and weaknesses of the Neoliberal approach to development using examples of countries in which they have implemented Neoliberal influenced reforms in order to develop their country. I will then attempt to evaluate my findings to see whether or not the Neoliberal approach is successful or not or is it something which has its weaknesses and strengths and cannot be judged either way. The term Neoliberalism can be defined as a ‘modernised or revised form of liberalism, one based on belief in free market capitalism and the rights of the individual. This is a definition given by the Oxford English Dictionary 1989. In the 1970s Neoliberalism enjoyed increasing popularity and an aspect of the theory we should look at its influence on the Washington Consensus which was an extensive list of economic policies written by John Williamson in 1989. This was a package of standards created to aid countries in economic crisis. Neoliberalism reduces the influence of state and trade unions on markets and reduces the public sector workforce. It also increases in the privatisation of formerly public owned institutions, decreases state interference and opens up markets of an economy to foreign companies. A country which takes on Neoliberal approaches to its economy, in theory should favour strong individual private property rights, rule of law and the institution of freely functioning markets and...
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...There are many important key issues that affect international development such as ethnic conflicts, democracy, health, etc. However, this policy brief will focus on the issue of poverty in international development. It will define poverty and the causes of poverty such as unemployment, political instability and rapid urbanization. As well as, the impact these causes have on international development. Lastly, this policy brief will offer suggestions to eliminate poverty. Poverty is defined as the condition of having insufficient resources to live and is one of the largest problems in developing countries. In the poorest of developing countries, almost eighty percent of the population lives in absolute poverty; which has a variety of serious consequences on human lives (Handelman, 2011). With the rising rates of poverty, many face problems of famine and lack of lodging. Over half of the population of developing countries, live in urban slums. Urban slums are generally self-made homes of brick and tin close together where there is no access to clean drinking water, sanitation or urban services including health care. Sanitation is poor, if there is any at all, and the water is contaminated because of the sewage running through it. The immediate danger with this type of environment is the risk to the people’s health. This degree of poverty and lack of clean water leads to poor personal hygiene resulting in the proliferation of various harmful bacteria which results in...
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...climate-altering changes, especially in the Pacific Ocean, now understood to operate on a global scale. ? a. hurricanes b. El Pinto c. El Nino 6-7. (2 points) Define the term structural adjustment policies (SAPs) _________________________________________________________________________ SAPs are policies that the World Bank and International Monetary Fund required from governments to receive loans. The policies were started to help countries become economically self-sufficient. This was to help ensure that that the loans would get repaid. SAPs encouraged governments to reduce spending on government programs, minimize the number of civil servants and by lowering taxes on already established private industries. _________________________________________________________________________ 8. The Incan Empire was principally in northern Mexico. True or False False 9-10. (2 points) Describe the pros and cons of NAFTA. NAFTA is a free trade agreement made between the United States, Canada and Mexico. This agreement would remove most barriers to free trade and investment by eliminating tariffs, establish clear trade rules, to improve working conditions and to develop and expand world trade. The pros are trade increases, consumer prices are lower and relations to these countries are stronger. The cons are displaced workers, lower salaries, environment problems and decreased government revenues....
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...the one of heavily impoverish countries. Those heavily impoverish countries were unable to accomplish financial stability so the more fortunate countries gave back to them in the form of erasing debt. 2. What conditions do you believe should accompany debt relief to developing countries? I do believe there should be debt relief for developing countries. I think that the conditions that should accompany debt relief is that this should be ran by the person in authority of the developing country. I also think that the person in charge needs to be knowledge about the debt relief for this developing country. There are many other conditions that should accompany debt relief in developing countries. 3. Why has the application of the World Banks standard Structural Adjustment Policies been counter-productive in many developing...
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...Development of economic thinking has been providing different policy guidance throughout the years formulated to cure problems of developing countries and most often these policy prescriptions have been used developed countries as a reference point. Policies that were offered reflected waves of economic thoughts and problems the world economy was facing. In 1776 Adam Smith’s invisible hand and market liberalism was followed by John Stuart Mill’s political economy problems and utilitarianism in 1848. Then these main ideas have been have been superseded by the theories of ‘the Big Push’, industrialization and structuralist approach in 1940-1960 after which there has been a shift from physical to human capital in 1970. But what is more important is the period since 1980 when the heyday of developmental economics brought shift to market liberalism, structural adjustment, institutional economics and the shift towards Washing Consensus. In the years of transition from command economies to market economies in 1990’s in many countries it was a tendency to implement policies supported by the framework of Washington Consensus and starting this millennium what has mostly been happening is the reaction to failures of Washington Consensus and ongoing experimentations that are targeted to find some answers to the everlasting problem of how to reduce poverty and enhance economic growth. Many of these one-fits-all policy prescriptions failed to prove their efficiency or that they are working...
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...Janice Carrillo PUR 4106 TOMS Backgrounder TOMS, a for-profit company, sells and designs shoes based on the Argentine alpargata design as well as eyewear. TOMS is behind the idea One for One, a global movement where the company donates a pair of TOMS to a child in a developing country when a pair of TOMS is sold, also; when the company sells a pair of eyewear, part of the profit is used to save or restore the eyesight for people in developing countries. It was founded in 2006 by president and co-founder, Blake Mycoskie. Mycoskie first traveled to Argentina when he competed in the second season of “The Amazing Race” with his sister. He returned to Argentina in early 2006 for vacation and noticed that local polo players were wearing a simple slip-on canvas shoe constructed of rubber. Later on in his trip, Mycoskie decided to do some volunteer work in the outskirts of Buenos Aires, and he witnessed the hardships children without shoes faced. He realized that the lack of shoes was not only a problem in Argentina, but also in other developing countries; therefore, he decided to develop his own style of alpargata in the North America market, with the hopes that when one pair of shoes was sold, one would be given to an underprivileged child. Mycoskie presented his idea to various Argentine shoe manufacturers and created the company TOMS. Originally, he made 250 pairs of shoes. In May 2006, the company began to sell its shoes. An article written in the Los Angeles Times helped...
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...World Bank History During the world war second the financial expert of allied nations recognized the need of international to deal with monetary anf financial problem.the 44 allied Nations convened the united Nation monetary and financial conference at Bretton Woods,New Hampshir U.S.A.only july 1-22 1994.At this conference the articles of agreement were drawnfor the international monetary fund and international Bank for reconstruction and development. The Bank articles of agreement were submitted for ratification to 44 governments during 1945 and entered into force on december 27,1945when they were signed by28 of nations.the banks start its operations on june25,1946.The head office of the bank is at Washington D.C U.S.A. Function of world bank Function:- i. To assist in reconstruction and development of member countries by facilitating the investment of capital for productives purposes. ii. World bank also used to promote and supplement private foreign investment. iii. It is used to promote the balance growth of international trade through the development of productives resources of members. iv. It give perference to more useful and urgent project. v. To assist in bringing about smooth transaction from wartime to peace time economy. Purpose of world bank The World Bank was established to promote long-term foreign investment loans on reasonable terms. The, purposes of the Bank, as set forth in the 'Articles of Agreement’ are as follows: 1) To assist...
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...Adalberto Melchor Econ Assignment 2 1—According to the textbook, “economics is a social science” means that it focuses on human needs both material and nonmaterial. By understanding economics we have a better way of understanding and the problems of developing nations. Also stated in the textbook is that central economics problems include different issues on the production of goods and service (Todaro & Smith, P. 26). 5— By understanding development, developing nations can identify the problems and formulate policy to improve people’s wellbeing (Todaro & Smith, P. 5). I think currently nations can’t agree on a rough definition of development because most of them have different approaches, measurements and standards. But I think in the future there might be a working definition that the nations can agree on and orient its strategies accordingly. As the textbook mentions there are three basic components that help understand the meaning of development which are sustenance, self-esteem and freedom (Todaro & Smith, P. 21). 6—The Strictly economic definition of development was inadequate due to not taking into account the factors other the financial or economical. I thought that economic development meant financial growth or the increase in production of goods. An example of a country that is developed economically but still underdeveloped would have to be India because it is producing a lot of goods and services but much of its citizens are living in poverty and...
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