Short answer questions: For these, answer seven questions; in general a good answer can be given in 2-3 sentences; half a page. If you answer more, I will only grade the first seven (10 points each, 70 points total) 1. Give two examples of a situation in which someone in Behind the Beautiful Forevers has to deal with corruption. 2. In Life and Debt (the film), the professor noted that across the period of structural adjustment, Jamaica’s debt hadn’t gone down, but had in fact increased substantially. Why did that happen?

QUESTION

Short answer questions: For these, answer seven questions; in general a good answer can be given in 2-3 sentences; half a page. If you answer more, I will only grade the first seven (10 points each, 70 points total)

1. Give two examples of a situation in which someone in Behind the Beautiful Forevers has to deal with corruption.

2. In Life and Debt (the film), the professor noted that across the period of structural adjustment, Jamaica’s debt hadn’t gone down, but had in fact increased substantially. Why did that happen?

3. What are two reasons that European nation-states are stronger than those of Africa?

4. What is free trade? What forces are pushing toward that goal?

5. One big effort in the development community has been to reduce the rate of “absolute” poverty (incomes of less than $1 or $1.25 per person per day). Where is one place where this effort has not been successful? Why?

6. What are two reasons that the richest countries in the world in places like the United States and Europe, while the poorest countries are in Africa?

7. What kinds of things/situations make it hard for the people in Behind the Beautiful Forevers to get enough food for their families?

8. Why is corruption a more serious problem in poor countries than in rich ones?

Essay 1 (30 points)
How did the IMF and the World Bank come to be? What do they do today? How have the IMF and World Bank contributed to the state of the world system today? How have they helped? What harm have they caused? How do they play different roles? Why do analysts and borrowing countries often link them together?
OR
What role do corporations play in the world today? What are they? How do they affect the lives of people in richer and poorer countries? What positive effects have they had? What negative effects?

ANSWER

The IMF and World Bank: Contributions and Controversies in the Global System

Introduction

The International Monetary Fund (IMF) and the World Bank are two influential international organizations that have shaped the world economy since their inception. This essay will delve into the origins of the IMF and World Bank, their current roles, and their impact on the global system. Furthermore, it will discuss their contributions, as well as the controversies surrounding them, highlighting both the positive and negative effects they have had. Additionally, we will explore why analysts and borrowing countries often link these institutions.

Origins and Current Roles

The IMF and World Bank were established after World War II to promote global economic stability and facilitate post-war reconstruction. The IMF’s primary objective was to maintain exchange rate stability and provide short-term financial assistance to member countries facing balance of payment difficulties (Kenton, 2022). On the other hand, the World Bank aimed to provide long-term financing for development projects, particularly in low-income countries.

Contributions and Positive Effects

The IMF and World Bank have significantly contributed to the world system. The IMF has played a crucial role in stabilizing economies during financial crises, providing emergency loans and technical assistance to needy countries (Linda Williams, Lumen Learning, n.d.). Its surveillance and policy advice have also promoted financial transparency and accountability. The World Bank, through its lending programs, has funded infrastructure projects, poverty reduction initiatives, and social development programs, thus contributing to economic growth and poverty alleviation in many countries.

Controversies and Negative Effects

Despite their positive contributions, the IMF and World Bank have faced criticism for their policies and practices. Critics argue that the conditions attached to IMF loans, known as structural adjustment programs (SAPs), often impose harsh austerity measures, leading to social hardships and exacerbating income inequality (Thomson et al., 2017). These programs have been accused of prioritizing debt repayment over social spending and in some cases, exacerbating economic crises instead of resolving them. The World Bank has also faced scrutiny for its lending practices, environmental impacts, and accusations of promoting Western-centric development models.

Different Roles and Linking

Although the IMF and World Bank are distinct entities, they are often linked due to their shared goal of promoting global economic stability and overlapping focus areas. Both institutions collaborate closely on debt management, financial sector reforms, and poverty reduction issues. Moreover, borrowing countries often engage with both institutions simultaneously to address their economic challenges comprehensively.

Conclusion

The IMF and World Bank have significantly shaped the global economic system. While they have made important contributions to financial stability, poverty reduction, and development, they have also faced criticisms and controversies. It is essential to balance their positive effects and the need for continued reform to address the concerns raised by borrowing countries and civil society. Understanding their origins, current roles, and impacts helps shed light on their complexities and provides a basis for ongoing discussions on their future direction.

References

Kenton, W. (2022). What Is the International Monetary Fund (IMF)? Investopedia. https://www.investopedia.com/terms/i/imf.asp           

Linda Williams, Lumen Learning. (n.d.). Reading: What Is the Role of the IMF and the World Bank? | International Business. https://courses.lumenlearning.com/suny-internationalbusiness/chapter/6-2-what-is-the-role-of-the-imf-and-the-world-bank/ 

Thomson, M. J., Kentikelenis, A., & Stubbs, T. (2017). Structural adjustment programmes adversely affect vulnerable populations: a systematic-narrative review of their effect on child and maternal health. Public Health Reviews, 38(1). https://doi.org/10.1186/s40985-017-0059-2