Drishti current affairs today

Drishti current affairs today

Drishti current affairs today Published this article page no  17 These countries choose the leadership and senior management and so their interests dominate despite the fact that the main borrowers are developing countries.Many of the economic reforms IMF required as conditions for its lending (fiscal austerity trade liberalization etc.) have often been counterproductive for target economies.Need to shift the focus from the needs of the USA and European countries to those of developing countries by reforming the voting structure. Reforms in World Bank Governance relatedDominance of US and other members of the G7 in voting and administration do not take into account significant changes in the profiles of major economic actors such as India and China.  Critics see the World Bank together with the other global economic institutions as an imperialism tool which protect the interests and ideas of the western rich countries and expands their dominance in the rest of the world. 21 Structural Adjustment Programs (SAP)SAPs imposed by both IMF and the World Bank severely affected the developing countries.SAPs enforced privatization of industries cuts in government spending and imposition of user fees marketbased pricing higher interest rates and trade liberalization. o This has resulted in slow growth higher poverty lower incomes increased debt burdens low human development indicators and deteriorating social services in many developing countries. Redefining purposeWorld Bank has not been able to redefine its purpose as a lending and developmental institution in light of the emergence of nontraditional lenders such as China. o Asia Infrastructure Investment Bank (AIIB) established by China is a multilateral development bank that focuses on infrastructure financing exactly the sort of work the World Bank does. Transparency in functioningBoth the World Bank and IMF are obscure and have little to open to the world in terms of documents and information Drishti current affairs today buy.

Drishti current affairs today