A problem that has been a matter of global worry for the last decade is the International Monetary Fund (IMF) and World Bank's strangle hold on the growth and economic development of developing countries. The IMF and World Bank are supported by developed countries and continue to be supported by them to this day. Only recently has a call for full debt forgiveness become a popular subject. The need for this debt forgiveness is supposed to provide these undeveloped countries with the opportunity to grow and become respectable members in the global village. Two articles that discuss this issue are Denise Froning's Will Debt Relief Really Help? and Russell Mokhiber and Robert Weissman's The IMF Stumbles. Denise Froning talks about the need for debt forgiveness and lack of support from developed countries. She also discusses a general plan on what is needed to solve the problem. Russell Mokhiber and Robert Weissman discuss the strangle hold the IMF has on the developing countries and the growing levels of protest in developing countries.
[...] Froning states that a Freedom House annual survey of political freedom points out, ‘Only 21 African countries (40 percent) are electoral democracies.' African people do not choose these leaders but they suffer the consequences of these leader's poor decisions.” (Froning, 338). Corruption has rotted the layers of undeveloped governments to the very core because of the economical situation civil servants begin to act in their own interest to obtain as much wealth as possible. Though corruption is evident in many nations, it is even more devastating on these African nations. [...]
[...] She recognizes the need for debt relief and puts a large focus on how it is needed if the problems are ever going to be solved but she also recognizes that the problem of debt relief doesn't come alone. These countries are in need of complete rebuilding; they need institutions, they need structure in their economy, and they need the boundaries that are put up against then dropped. My perspective has turned from not only blaming the IMF and World Bank but also putting a large focus on developed countries and how they are not doing enough to help out these countries. [...]
[...] Froning believes that if the problems are all addressed in its whole one by one, it is more than likely that they will be able to develop into a functioning member of the global economy. Froning made a more persuasive argument towards debt relief by labeling the other problems of these countries and noting that the problem at hand can only be fixed if all the problems are addressed and taken care of. My opinion on the IMF and World Bank has always been a negative one, I have always blamed them for the fact that many countries are in great poverty in what seemed to be solely at their hands. [...]
[...] They write about how the guidelines that the IMF put into place to help rebuild the failing economies of the poor countries has put them in a worst situation today. most of the world's poorest nations where structural adjustment policies have been implemented at the IMF's behest, poverty has increased, health care systems have collapsed, and income inequality has skyrocketed.”(Mokhiber,Weissman) The two argue that the IMF is nothing but a negative effect on the undeveloped countries in our world. Recent success stories of countries that have grown economically are those who have ignored the suggestions from the IMF. [...]
[...] They show the report from the Meltzer Commission, a commission to the US congress, has suggested that the IMF should use its existing resources to forgive all debt and second, get out of long term lending all together. This has brought some more momentum to the cause, however the IMF still is receiving funding from the US congress even though they know the problem at hand. Mokhiber and Weissman discuss how rallys are being organized to bring attention to the issue, however unless greater actions are taken by developed nations the problem will remain unchanged. [...]
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