To go out of the chaos caused by World War 2, countries had to set up new institutions liable to restore a stable and durable international order. This reconstruction was led by the United States of America and its allies. From 1941, in the Atlantic chart, the allies wanted to affirm again the freedom principles concerning navigation, international transactions and the access to raw materials. Thanks to these principles, they subscribed to liberalism thesis and they underlined their opinions against protectionism. In 1945, this liberalist thought benefited from the dominant influence of the USA and it also coincided with the well know interest of America. In fact, the huge national production in the USA needed huge exterior open markets. Moreover, very conscious of its economic position linked to the war, the American bankers wanted to be reimbursed in non devaluated money. That is why, USA desired to elaborate a new economic and international system.
[...] Each of these institutions has its own area of responsibility and specialization and its particular contribution to make to the world economy. The IMF's collaboration with the World Bank on poverty reduction is especially close because the Bank is the leading international institution promoting economic development. Areas in which the IMF and World Bank collaborate include social policies, assessments of member countries' financial sectors, development of standards and codes. The IMF is also a member of the Financial Stability Forum, which brings together government officials responsible for financial stability in the major international financial centers. [...]
[...] The IMF and the World Bank jointly launch the Heavily Indebted Poor Countries (HIPC) Initiative with the aim of reducing the external debt of the world's poorest and heavily indebted countries to sustainable levels in a reasonably short period. Globalization of the financial markets thus demanded the adaptation of the mechanisms of the financing The IMF replaces the Enhanced Structural Adjustment Facility with the Poverty Reduction and Growth Facility, which gives explicit attention to poverty reduction, and the HIPC Initiative is enhanced to provide faster, broader and deeper debt relief. [...]
[...] Some observers as Joseph Stiglitz and Jeffrey Sachs said that the institutions had aggravated the crisis by favoring the external constraints to the detriment of the internal stability of the country. Argentine case: Argentina was considered as a model pupil by the IMF. Actually, she applied three principles of the “Washington consensus”: flexibility, opening of the economy and retract of the State. However, the country was in a serious crisis. The decrease of the raw materials, the devaluation of the Brazilian money, and the increase of the interest rates caused a degradation of life conditions. [...]
[...] Source : Report of the national assembly 2801 "Activities and control of the IMF and the World Bank Tavernier, Yves III- Legitimacy of the Institutions in financial crisis Some crisis in emerging countries had repercussions on the international economy. Actually, financial crisis in Asia, in Latina America or in Russia opened the first crisis of the liberal globalization. Bretton Woods's institutions had been unable to warn this. The Washington consensus founded on the superiority of financial markets and the acceptance of the determinant direction of the United-states were questioning. [...]
[...] And it has introduced several initiatives designed to make countries less vulnerable to crisis (development if standards and codes, warning system, promotion of good governance, fight against money laundering and financing of terrorism A lot of against globalization organizations, liberal economists, and even other institutions such as the World Bank are criticizing the IMF actions. It said that the IMF actions, even if they enable a short help for under developed countries, are making poverty and debts worst. The intervention ability of these states is reduced, which prevent them to settle their major issues. [...]
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