Are international organizations like World Bank (WB), World Trade Organization (WTO) and International Monetary Fund (IMF) helping developing countries?
After the Second World war and Cold war, developed countries had come together to support developing countries to step out of the poverty line and unemployment. World Bank, World Trade Organization, and International Monetary Fund are some of the organizations established to bring economic growth in the developing countries. But still today, these countries are facing the similar issues. Shouldn’t we see some economic growth and improvements in their economy? If the situations are not improving in the developing countries, then we may want to check if the system that is running these countries is actually working.
IMF is criticized for creating more economic problems in the developing countries than prospering their economy. IMF has power and influence over economic policy in developing countries because it is taken as an international organization that is there to fix the problems of developing countries. However, IMF didn’t take any responsibilities for the Asian financial crisis, instead, IMF blamed the political and economic instability of the developing countries. Developing countries are developing because they have problems inside their countries and they haven’t found a way to address these problems. They are developing because there are political instability and majority of the citizen living under poverty line and are unemployed. After failing to address the Asian financial crisis, IMF moved to Argentina in the name of improving Argentina’s economy, which wasn’t a success on their part either. Repeated failures of IMF make us wonder, why IMF is still influencing and controlling the economic policies of developing countries. It makes us question why are developed countries still supporting IMF and advocating in its favor?
These international organizations were created based on the needs of the developing countries but they don’t seem to stand for their purpose anymore. They seem to stand for globalization and capitalization. For instance, the US secretary of state John Kerry flew to Kosovo to voice his support for a proposed US-built, World Bank-sponsored coal power station. It the paper, the United States, and World Bank says building the coal power station would help foster economic situation of Kosovo but in reality, the coal power station has a higher probability of polluting the environment and negatively impacting the health of people who will be living nearby the power station. Since the United States is the only bidder for this project, they will be gaining profit without having to deal with any of the environmental and health issues.
These organizations are still existing and they can still control the decisions of developing countries because their decisions are largely controlled by the developed countries and the multinational corporations who fund them. The World Trade Organization is the global organization dealing with the rules of trade between nations but its rule can be bent depending on what countries are involved. At the same time, these organizations put so much restriction on developing countries that it is difficult for them to achieve economic prosperity. It sends the message to the developing countries that they are on their own to solve their problems. If the developed nations want to help them, it is because these countries have resources that the developed countries could profit from.