4.3.3 Strategies influencing growth and development (d) Flashcards
How do the World bank operate / influence growth and development?
Largest sources of funding and knowledge for developing countries.
Gives grants, interest free credit and low interest rate loans.
It focusses on strengthening the private sector in developing countries.
What are the criticisms of the World Bank?
Power imbalances - powerful countries hold most of the power in decsion making countries.
World Bank emphaises on private sector investment and infrastructure projects -> arguably neglects crucial areas like education, healthcare and social services.
How do the IMF operate / influence growth and development?
Works to achieve sustainble growth and prosperity for all of its 190 member countries.
It does so by supporting economic policies that promote financial stability and monetary cooperation - essential in economic growth.
The IMF provides financial support to countries hit by crises to create breathing room that restore economic stability and growth.
Finally, the IMF identifies potential risks and recommends appropriate policy adjustments / advice to member countries.
What are the criticisms of the IMF?
IMF often enforces austerity measures which can be harmful in the long run and worsen income equality.
Some claim the IMF are also not fully accountable for the consequences of their policy recomendations.
What is a NGO?
Non Profit Organisation - Oxfam works to alleviate poverty, promote social and economic justice.
