As you know, I have gagged myself from ranting but this subject demands it. The subject of the World Bank (WB) and the International Monetary Fund (IMF). I hope by now you have deduce my stance on these institutions through my wonderful title. I pride myself in making my blog titles. Anyways, I wish that this entry won't "just regurgitate" information and give you my one-sided opinion about the WB and IMF. I might sound like a flaming liberal but that is because of the amount of passion I have invested in this crucial subject.
So first of all, what is the World Bank and IMF? Well to put simply, they are banks that provides loans to national governments. The national governments then use this money (and maybe pocket some of it) in public works to "stimulate" economical growth for the country.
What is the history of these "wonderful" institutions? During the waning days of World War II, 44 Allied Nations convened in a place called Bretton Woods, New Hampshire, USA to discuss the financial geography of the time. World leaders whole-heartedly agreed to introduce Keynesian-Economics (read the previous blog for more info.) so that the disaster that was the Great Depression won't ever happen again. Also, to assist the recovery of nations from the onslaught of WWII, they established two banks to handle this task, the World Bank (headed by an American representative) and the IMF (headed by an European Representative).
Well, let's not kid ourselves here. I mean these entities are financial entities that are aroused by the mere scent, sound and discussion about money. They crave, breathe and worship money. They are banks after all. But this has evolved to a point of simple yet utter greed. The mission of these institutions have become gibberish (to me) or maybe lost in practicality. Why am I so riled about it? It is because I sympathize with national leaders who are really trying to improve their country. But when they go to the WB or the IMF, they are put in between a rock and a hard place. The loans that are given are short-termed and comes with numerous stipulations. I'm asking you, how can a struggling country plagued by war, disease, famine and disasters pay a loan with compounded interest? What do they do? These loans have to paid on time and contracts are drafted so that governments are not allowed to spend the loans on social-advancement programs like a better healthcare and education programs for their citizens. If you can't pay then why not just get another loan and if you won't pay then consequences have to be dealt with.
The WB and IMF are contradictions. Instead of helping poorer nations rise up against poverty, they kick them back down into a World of debt, death and shackles. That's right, the IMF and WB are OUTRIGHT ENSLAVING developing countries and peoples, so that the EXTREMELY wealthy maintain their lavish lifestyles.
"The love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows." ~ Paul of Tarsus
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