The International Monetary Fund: Part of the Problem or Part of the Solution?

The International Monetary Fund (IMF) and the World Bank are two supranational institutions with mandates to help resolve economic crises and to foster economic development. From their creation in 1945 with a membership of 45 countries, these institutions have grown to over 180 member countries; but...

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Bibliographic Details
Published in:Journal of global business issues 2009-04, Vol.3 (1), p.137
Main Authors: Vehorn, Charles L, Hashemzadeh, Nozar
Format: Article
Language:English
Subjects:
Borrowing
Critics
Developing countries
Economic crisis
Economic development
Fixed exchange rates
Foreign exchange rates
International finance
International organizations
LDCs
Loans
Political behavior
Political economy
Politics
Sovereignty
Studies
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Summary:The International Monetary Fund (IMF) and the World Bank are two supranational institutions with mandates to help resolve economic crises and to foster economic development. From their creation in 1945 with a membership of 45 countries, these institutions have grown to over 180 member countries; but they have the same clients, provide a similar service - conditional loans, and are subject to similar criticisms regarding adherence to what has been labeled as the Washington consensus. The objectives of this paper are to (i) review relevant research regarding the debate of whether the Bretton Woods institutions are part of the problem or part of the solution; (ii) evaluate the debate employing a political economy perspective; and (iii) assess recent reforms at both institutions as the world moves toward new local and global paradigms. A political economy perspective is taken by examining vested interests among the lenders, borrowers, and professional staff. In several cases, benefits to one or more of the actors have come at the expense of other actors. [PUBLICATION ABSTRACT]
ISSN:1931-311X