International Busness

Can developing countries of today manage without institutions like IMF and World Bank

I feel developing countries cannot achieve their goals without the support of IMF and the World Bank.

Developing countries are in general countries which have not achieved a significant degree of industrialization relative to their populations, and which have, in most cases a medium to low standard. There is a strong correlation between low income and high population growth. The major challenges these countries face are poverty, unemployment, food crisis and health among others. To overcome such problems these countries need lot of money and technical assistance to guide them towards being a developed nation. Hence, there is a need for institutions which can act as a vital source of financial and technical assistance to developing countries around the world.

The International Monetary Fund (IMF) and World Bank are an organization of 187 countries, (each member of World Bank has to be a member of IMF also) working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The World Bank is made up of two unique development institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses on the world's poorest countries. Together, these institutions provide low-interest loans, interest-free credits and grants to developing countries for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management. The IMF provides loans to countries that have trouble meeting their international payments and cannot otherwise find sufficient...