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Imf & Wb Affect on Africa

In: Business and Management

Submitted By parthasarothi
Words 2395
Pages 10
“The World Bank and IMF exploit and oppress the "developing" countries for the benefit of the rich. In this scheme, their partners in crime are the big Western banks and financial institutions. Simply abolishing the IMF and World Bank is not enough. We need to break the power of the big banks that carry out the same exploitative policies as the IMF and World Bank do in relation to the less developed world.”- CWI, socialistworld.net
Introduction
Marginalization can be defined as the process in which groups of people are excluded (marginalized) by the wider society. Marginalization is often used in an economic or political sense to refer to the rendering of an individual, an ethnic or national group, or a nation-state powerless by a more powerful individual (ask.com, 2014).
The process whereby something or someone is pushed to the edge of a group and accorded lesser importance. This is predominantly a social phenomenon by which a minority or sub-group is excluded, and their needs or desires ignored (Businessdictionary.com, 2014). As per UNLDC report, a number of countries are being marginalized on the basis of economic exploitation (Table 1).

Why World Bank programs fail?
According to Johnson & Sheehy, a majority of World Bank loan and grant recipients do not ave significant level of economic freedom (Table 2) and such nature prevents countries to utilize the loan or grant.
• Of the 60 long-term recipients of World Bank aid, 37 have economies that are “mostly not free” or “repressed.
• Only 23 long-term recipients of World Bank aid have economies that are “mostly free” and none have economies that are “free” (Table 2)

Those recipients that have performed particularly poor are the least economically free:
• Of the 18 countries whose economies have shrunk since they have been World Bank recipients, 16 have their “mostly not free” or “repressed”

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