IMF, World Bank And Africa Essay -- Economics Banks African Essays

IMF, gentleman Bank And AfricaAn avid viewer of television has seen the commercials depicting shortages of food and mass starvation in Africa. Yet in these propagation of relative prosperity, little is heard of Africas debt problem. Although the total debt of all African countries combined is small in comparison to that of the united States, millions of people patronise as a result. However, it is not until these countries sacrifice difficulty repaying their loans that the international society begins to take notice. Many African countries are currently in such debt that all new loans are used to repay old loans in a attempt to salvage any credit rating a pastoral might have (George, 13). Because many banks, particularly in the United states, have invested as much as 100 percent of their shareowners equity in these less developed countries (LDCs), the chances of a country defaulting on a loan sends tremors through the economic world (George, 39). at long last the countries are recognized as a poor credit adventure and can no longer get loans. This is where the International financial ancestry (IMF) and the World Bank come into the picture. The structural adjustment programs of the International Monetary Fund (IMF) and the World Bank have had greater negative set up than positive on the African countries that have adopted them. This essay impart examine the adjustment programs themselves and the political, social and economic effects adjustment programs have had on the countries that have accepted them.The IMF began as an organization whose purpose was to foster international trade and discourage protectionism while assisting in the correction of end payments disequilibria for those countries who required short-term assistance (World Bank, 7). The World Banks sis organization, the IMF, attempts to promote economic growth in certain countries through loans allow for specific development projects. Membership in the World Bank requires social s tatus in the IMF. Recently the two organizations have been acting in design and often institute very similar policies.Members of the IMF are designated a annual quota according to their economic standing, and are required to put down an initial percentage in gold, the remainder of which is payable in domestic currency. The LDC is allowed to pass away on this quota and even surpass it providing that it agrees to certain go... ...arnounis, Chris C. The Debt Dilema of Developing Nations. West user interface Ovoum Books. 1984George, Susan. A Fate Worst than Debt. New York Grove Press. 1998Harsch, Ernest. After trying on. Africa Report. 34(May) 1989Hodd, Micheal. Africa, the IMF and the World Bank. African Affairs. 1987Korner, Peter and Gero Maass. The IMF and the Crisis A Guide to the tierce World. New Jersey Zed Books Ltd. 1984Kronsten, Gregory. The IMF in Africa Factor of stability or Unrest?. The World Today. 1987Lawrence, Peter .ed. World Recession & The Food Crises In Africa . London, 1986Mittleman, James H. and Donald Will. The International Monetary Fund, State Autonomy and Human Rights. Africa Today. 1987Nowzad, Bahram .ed. The Macroeconomics effects of Fund-Supported Adjustment Programs. International Monetary Fund Staff. Washington D.C. 1990Prendergast, John. Blood notes for Sudan The World Bank and the IMF to the Rescue. Africa Today. 1989.The World Bank Questions and Answers. Washington D.C. The World Bank. 1976. The World Bank Annual Report 1986. Washington D.C. The World Bank. 1986. http//flag.blackened.net/ beat back/africa/wsfws/3_1imf.html