For years and years International Monetary Fund and World Bank’s role in globalization has been a controversial issue. Lots of people have given their reviews on this issue as it’s has become a subject of constant debate in world forums. Many economist and experts shows their discontent against the global economic policies that are practiced by the International Monetary Fund, World Bank and World Trade Organization. Some of them have also shifted their guns towards the International Monetary Fund; by labeling them as non transparent to the general public while protecting the corporate interest (Hazakis & Siousouras, 2008).
Joseph E. Stiglitz author of the book Globalization and Its Discontents shares his experience when he was the chief economist at the World Bank. The author believes that some of the policies that were adapted by the IMF became very skeptical as they were acting against the interest of the developing nations. As Stiglitz has worked at the World Bank in his book he has shared some real time events which the author has himself experienced. Also some of the bad decisions that were made by the IMF and how they have treated countries which were in need are also unfolded (Stiglitz, 2002).
History tells us that the role of IMF has always been suspicious and as Stiglitz has mentioned in his book they lack transparency and accountability. The results of these mishaps could be seen in the financial crisis around the world like East Asia, Russia, Africa and Argentina where IMF’s policies turned out to be a disaster (Dutt & Mukhopadhyay, 2009). What happened in there was that loans were taken from the IMP for development purpose and for other growth programs but they turned up into a catastrophe, reason being the extensive terms and conditions plus the never ending interest of that loan. All in all the conditions attached with the loan sabotaged the local economic growth and profited multinationals.
The reason why there is so heavy criticism faced by IMF is because of the terms and conditions which are attached with the loans that they provide. Their loan policies are next to committing suicide reason being the heavy payments of interest which eventually destroys the whole economy of the borrowing nation (Stiglitz, 2002).
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