THE EFFECTS OF THE MONETARY INSTITUTIONS, “IMF” AND“WB”

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In 2005 according to CIA’s data bank nearly 40 countries had started these programs. The debt relief is activated when a country complies with what is called the "decision point". At the end of the process is known as the "completion point". At the end of 2010, 32 countries had reached their completion points and they were receiving full relief of the debt of the IMF and other creditors under proposals drawn up in 2005 by the Finance Ministers of the G8 group.

But not everyone is pleased and happy with the policies of these two institutions, and not everyone thinks that it is the best choice for helping a country.

Some say that these policies of economic intervention will worsen the situation. For example, in the Asian crisis of 1997, many countries such as Indonesia, Malaysia and Thailand were aided by IMF to pursue a restrictive monetary policy with strict fiscal policy to reduce the deficit and strengthen exchange rates. However, these policies caused from one minor slowdown to become a serious recession with massive unemployment.

In 2001, Argentina was forced into a similar policy of fiscal restraint. This led to a decrease in investment in public services that undoubtedly damages the economy.

Critics and protesters come together largely in their aversion to globalization: in general terms, the integration of the economies of the world, the exploitation of the poor and the environment, arguing that free trade threatens the livelihoods of millions of people. The IMF has admitted that forcing developing countries to open their markets to foreign investors can increase the risk of financial crises. Activists argue that loans and long-term agreements can be made dependent on aid to some countries.

Former managing director Horst Koehler said in 2002 that the benefits of globalization do not had been equally shared by all countries. But added that "the aim should not be less globalization, but more and better globalization."

Conclusions

In deed these two organizations were born from a necessity to overcome economic crisis and disasters from the World War mess, but since it was made by the victor countries it was made for their economy models and even though it really helps some countries to grow and to prosper also it interferes whit other countries development and sovereignty because of its intervention policies.

It is cleared that also whit its help it brings globalization but as the former managing director Horst Koehler said in 2002 that the benefits of globalization do not had been equally shared by all countries. We do need globalization, just not the kind of globalization were having right now, that segregates other countries and creates these enormous gaps between rich and poor.

We’ll see if in the future could be possible to have another type or variety of globalization were all the countries grow together and get help in an even way without excluding other.

Also how the countries get their votes inside these institutions is a way of discrimination because they are saying only the most powerful and developed countries will have a heavier vote and have more power in the decisions made than the underdeveloped countries or poorer countries.

References

Criticism of IMF. (2012). Retrieved November 27, 2015, from http://www.economicshelp.org/blog/glossary/imf-criticism/

Debate: The World Bank is an obstacle to development. (2011). Retrieved November 27, 2015, from http://dbp.idebate.org/en/index.php/Debate:_The_World_Bank_is_an_obstacle_to_developmenthttp://dbp.idebate.org/en/index.php/Debate:_The_World_Bank_is_an_obstacle_to_development

El Grupo del Banco Mundial. (n.d.). Retrieved November 26, 2015, from http://www.bancomundial.org/

IMF -- International Monetary Fund Home Page. (n.d.). Retrieved November 26, 2015, from http://www.imf.org/external/index.htm

IMF conditionality: The pros and cons. (2010). Retrieved November 27, 2015, from http://www.emergingmarkets.org/Article/1017523/IMF-conditionality-the-pros-and-cons.html

Johnson, W. (2009). Pros & Cons of Borrowing Money From the IMF. Retrieved November 27, 2015, from http://www.ehow.com/info_7791205_pros-cons-borrowing-money-imf.html

Profile: IMF and World Bank. (2012, April 17). Retrieved November 27, 2015, from http://news.bbc.co.uk/2/hi/americas/country_profiles/3670465.stm

Rogoff, K. (2014). The pros and cons of aid to developing economies. Retrieved November 26, 2015, from http://www.theguardian.com/business/economics-blog/2014/jan/06/pros-cons-aid-developing-economies

Top Ten Reasons to Oppose the IMF | Global Exchange. (2011). Retrieved November 27, 2015, from http://www.globalexchange.org/resources/wbimf/oppose

Vasquez ruiz, H. (2014). Análisis del tipo de cambio real en la República Dominicana: Un estudio con base en metodologías de estimación del Fondo Monetario Internacional. Monterrey, Nuevo Leon: UDEM.

Appendix A

Countries of the Eurozone (Spain, Portugal, Greece, Ireland, Italy) with a high

Differential borrowing during the crisis of sovereign debt in 2010-11

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Appendix B

The data up to 2000 excluded the United States.[pic 3]

Appendix C

Germany, Canada, United States, France, Italy, Japan, United Kingdom.

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Appendix D

In relation to the edition of September 2011 of the WEO report

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