Essays on International Organisations In International Business Environment: IMF, WB Coursework

Download full paperFile format: .doc, available for editing

The paper "International Organisations In International Business Environment: IMF, WB " is a good example of business coursework.   The International Monetary Fund (IMF) and the World Bank were constituted in 1944 to achieve different but complementary ends. That was the era when the world economy was tattering following the Great Depression of the 1930s and the devastation of World War II. The IMF was tasked to help governments overcome balance-of-payments while the World Bank’ s brief was to promote post-war reconstruction. Despite the lofty ideals and bagful of cash, the two institutions somehow failed to achieve their separate objectives. In fact, former head of IMF Horst Koehler had once admitted that fund was not attentive enough to the changes in global financial markets, and their repercussions on exchange rate systems and domestic financial sectors. The World Bank is criticised for its supposed failure to take proper account of human and environmental needs in its projects The IMF’ s experience in Africa had even worse results.

During late 1970, the African countries approached the IMF to help them wriggle out of the huge debt and inflation crisis. But, the Structural Adjustment Programmes (SAP)— the panacea suggested by the IMF to their crisis — however, did exactly the opposite. The SAP is the fiscal conditions the World Bank and IMF slap on the developing countries before releasing new loans to them or allowing lower interest rates on existing loans. These conditions are enforced to ensure that the money lent is spent in line with the overall loan objectives.

The idea is to enable the borrower country to make debt repayments, and thus reducing the fiscal imbalance. This, the borrowing country has to do by devaluing their currencies against the dollar; removing price controls mechanisms and the state subsidies, besides lifting import and export restrictions; and opting for restricted budgets. For example, subsidies were cancelled in the name of “ streamlining the public expenditure, while a restrictive monetary policy sent the interest rates soaring along with the escalating inflationary trend thanks to the currency devaluation, together with simultaneous removal of price controls measures.

This created high-interest, low-investment conditions, which restricted new employment opportunities. The SAP, in fact, introduced deep cuts in programmes like education, health and social care, besides removing the subsidies.

Naturally, the poor were the worst hit. Not surprisingly, today Latin American countries like Mexico and Brazil have been found refusing loans. In fact, a number of the countries that preferred to borrow from the IMF were left with even worse per capita wealth because of the immense pressure of loans. For one, Nicaragua despite bagging over $637 million as World Bank aid saw it’ s per capita gross domestic product plummeting to $875 in 1995 against $1,752 that it had in 1965. Not without reasons, the per capita income has stagnated in Latin America, while it has gone south in Africa after the two regions were put through the structural adjustment experience. Besides, US academicians Sanjay G.

Reddy and Thomas W. Pogge have raised serious questions about the methodology and the yardsticks the World Bank uses while calculating the poverty levels worldwide.

Bibliography

http://domino.research.ibm.com/odis/odis.nsf/pages/solution.01.html

Supply chain management, John T. Mentzer

Albend, Jules & Gill, Penny (1999) supply chain success stories, Supply Chain Management Reviews

Byrne, Patric and Markham, William (1991) Improving quality and productivity in logistic process: achieving customer’s satisfaction breakthrough

Supply chain management, John T. Mentzer

Albend, Jules & Gill, Penny (1999) supply chain success stories, Supply Chain Management Reviews

(http://domino.research.ibm.com/odis/odis.nsf/pages/solution.01.html)

Download full paperFile format: .doc, available for editing
Contact Us