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CRITISIM ABOUT IMF AND WORLD BANK (0)

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TALLINNA ÜLIKOOL

POLITICAL SCIENCE AND GOVERNMENT INSTITUTE
ANNELI PALM
CRITISIM ABOUT IMF AND WORLD BANK
INTERNATIONAL POLITICAL ECONOMY (RIR6032/RIR6004)
ESSAY
2014

Contents


TALLINNA ÜLIKOOL 1
Introduction . 3
Basic of liberalism 4
International Monetary Fund and World Bank 4
IMF(International Monetary Fund) 4
WB(World Bank) 5
Criticism 5
Ecuador 6
Summary 8
Bibliography 10

Introduction.

Years ago countries didn’t depend so much on imports and also on export. World has so many organizations controlling countries economics like WTO, The European Union, OPEC , NAFTA, ASEAN , APEC, MERCOSUR , CEEAC, IMF, World Bank and so on. Nowadays because of globalization there are large corporations like Apple, Gazprom and Allianz who rules the world and control the economic outcome with big organizations that are roled by influencial countries like China and USA.
This essay is about criticism to IMF and World Bank. Critics of the World Bank and the IMF are concerned about the ‘conditionalities’ imposed on borrower countries. Often the conditionalities are attached without due regard for the borrower countries’ individual circumstances and the prescriptive recommendations by the World Bank and IMF fail to resolve the economic problems within the countries. As a example author is using Ecuador that is a small country in South America. In 1968- 1998 IMF and World Bank interviened with large loans to help the country but the growth of poverty increased form 50% to 70%, under or unemployment 15%to 70% and the public debt grew from 240 million to 16 billion ( Perkins , 2004, lk 239). This essay is going to explore how this kind of thing could have happened ? The idea is not to blame well- known organizations. The idea is to observe and explain what happened to Ecuador and discuss if the criticism about this matter is grounded.
In this essay author is going to use a book “ Confessions of an Economic Hitman“ by John Perkins that spent a year on New York Times bestseller list in 2004 and caused lot of discussion all over the world. Author also uses other sources what you can find from literature .
In the first part author is going to write about the basics of liberalism. In the second part writer is going to give a brief overview of IMF and World Bank and the criticism about these organizations. In the third part essay explores the Ecuador case and looks it through the realism . To understand this essay better, author has divided it into chapters . Work conclusions and future research opportunities are presented in the summary.

Basic of liberalism

Liberalism is one of the oldest theories and it contrasts to realism that has rather pessimistic approach not like liberalism that tries to be optimistic. The theory emerged to show the futility of war and the idea of ​​creating a better future. You can find four types of liberalism ( Jackson , 2010) but in this essay we are foucused more on institutional liberalism whereby the role of international institutions lies in transnational cooperation . Liberalists belive that international relations are based on collaborative work. Liberalism also belives that humans are naturally good . This theory is mostly influenced by Locke , Bentham and Kant (Jackson, 2010).
Liberals want to remove the influence of the state in commercial relations between businesses and individuals, and the decline of national economic sovereignty is an indication that the corrupting influence of the state is rapidly diminishing (Burchill, 2005, lk 82). According
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This essay is about criticism to IMF and World Bank. Critics of the World Bank and the IMF are concerned about the ‘conditionalities’ imposed on borrower countries. Often the conditionalities are attached without due regard for the borrower countries’ individual circumstances and the prescriptive recommendations by the World Bank and IMF fail to resolve the economic problems within the countries. As a example author is using Ecuador that is a small country in South America.
CRITISIM ABOUT IMF AND WORLD BANK , world bank , inglise keel

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