Global Systems - Role Of International Financial Institutions Flashcards
What is the role of IMF and WB?
Supporting worlds economic and financial order.
Regulate / act as intermediaries in the flow of international capital.
When Was world bank and IMF established?
End of world war.
Steady global economy.
Provide financial stability.
How much staff does IMF have ?
2,300 from 185 counties.
European managing director.
How much staff does WB have ?
7,500 staff from 185 counties.
American president .
How does IMF get its financial resources?
From quota subscriptions of member countries.
Where does WB get its financial resources from?
Borrowing on international bond market.
Why does IMF provide loans?
Prevent financial crisis.
Helps tackle payment problems.
Stabilise economy.
Where does WB focus on ?
Developing counties and their economic development.
Encourages start up private enterprises.
What does IMF act as?
What Does WB act as ?
Regulator of financial flows/ stabiliser for that system.
Provider for support for LICs/ reduce poverty.
Why have IMF been criticised?
Severe cuts on education / welfare spending by governments in LICs.
Why has WB been criticised?
Loans haven’t reduced poverty.
Top down projects.
Give an example of a top down project the WB imposed?
Large multi purpose dams to provide HEP in less developed counties - didn’t help reduce poverty.
Define top down.
Decision to undertake projects is made by central authority with no consultation of local people .
Define bottom up.
Local people consulted and supported in making decisions for projects.
