Week #3: World Bank and the IMF

  1. The World Bank is an international organization that primarily provides development loans to countries. These loans can assist in the building of schools, medical facilities, and more. While the IMF is a conglomeration of 188 countries who have come together in order to maintain financial security, stability, and promote trade among nations. These two efforts were put forth by the UN because a few issues arose in the initial days of aid. Corruption is often a problem that country-to-country loans cannot avoid. Whether it is implied corruption between the business dealings promoted by the loan or the officials of a developing nation skim from the loan.
  2. The Millennium Development Goals provide a framework for aid. However, they do not specify which of the development goals should be priorities, at any stage of development. While they are primarily geared to combat poverty and strife, each goal should be evaluated with a priority on achievability. Regions are ranked by their success in these efforts. Sub-Saharan Africa is the lowest ranked region in the world due to several factors. Weak government, conflicts, systemic poverty are all factors in this regions lackadaisical attempts to achieve the MDGs. Social spending, one possible solution to the problem, is a vital aspect of aid because it targets issues affects people such as hunger and disease, which then allow for an easier time achieving the other goals.
  3. Oxfam International is an organization with goals that are akin to the MDGs. One might suspect that they would support the MDGs entirely. But they do offer some criticism. They argue that the MDGs are not efficient enough when dispersing aid. They feel that these funds could be more effectively allocated towards efforts to alter the balance between countries. They also say that more drastic changes are necessary in order to make a more marked impact upon poverty in these nations.
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