Youssouf Diallo International Political Economics Critique of IMF Loan Conditionality What is Conditionality? Conditionality is most often associated with aid money. International organizations, such as the International Monetary Fund (IMF) and World Bank, or individual countries can use conditionality when lending money to another country. The donor country requires that the country receiving the funds adhere certain rules directing the use of funds (Investopedia, 2013). Conditionality in
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The Bank for International Settlements (BIS) was established on May 17th 1930. The BIS is a result of an intergovernmental agreement by Germany, Belgium, France, the UK, Italy, Japan, the United States and Switzerland. The BIS is composed of 60 central banks, which represents nations from around the globe that together make up around 95% of the world’s GDP. When the BIS was established it was responsible for the collection, administration and distribution of reparations from Germany, like it was
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Definition of 'World Trade Organization - WTO' An international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible. History : The main building, known as the Centre William Rappard, was constructed on an estate which was gradually formed by the union of a number of plots of land between 1755 and 1893. In 1785, construction began on the Villa Rappard, the house that still stands
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establishment of multinational treaties to govern the global business system Institutions created over the past half century include: * the General Agreement on Tariffs and Trade (GATT) * the World Trade Organization (WTO) * the International Monetary Fund (IMF) * the World Bank (WB) * the United Nations (UN) a)The World Trade Organization (like its predecessor GATT) is
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assumption that a higher GNP leads to a higher quality of living, all other things being equal. But this notion has been challenged in recent years given the failure of the traditional measures of countries’ economic health to take into account non-monetary and informal nature of the economies, especially in the developing world. This paper looks at the advantages and the disadvantages of using the GNP to measure the health of the Kenya economy. The advantages of using GNP to measure the economy
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Mechanisms During the height of World War Two representatives from 44 countries met in New Hampshire to design a new monetary system to replace the collapsed Gold Standard system. The agreement reached established two multinational institutions the International Monetary Fund (IMF) and the World Bank. The IMF job would be to maintain order in the international monetary system, the World Bank job would be to promote general economic development. The agreement called for a system of fixed exchange
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Global Financial Crisis The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out
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various classes of economics. They are the classical economics, neoclassical economics, the Australian School of Economics, and the Chicago School of Economics. Liberal approach seeks to analyze the role of financial institutions like the International Monetary Fund, and the World Bank in the world of economics. The approach examines the economic relations with the three views, such as; 1.1 Realistic View Most scholars often prefer the use of game theory in order to give an explanation
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iconic American names such as Ashley and Brian and sound like our neighbors. Only Ashley are Brian are on the other side of the world where our day is their night. Outsourcing and globalization has made it possible for work and labor to flow across international borders to wherever it is cheapest to do. Many people feel threatened by the trends of outsourcing and globalization. After all, how can any American be expected to compete with someone who is willing to work for penny’s? Yet it is in America’s
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(Roubini, 2010). These low interest rates led consumers, particularly those in the US, to borrow more money than they could afford to repay (Roubini, 2010). During the financial crisis, credit defaults brought the solvency of a number of major international banks into question, and several governments ultimately had to bail out their banking systems (Rose & Spiegel, 2009). Problems that arose primarily in the United States quickly spread around the world due to the resulting contagion (Rose &
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