DEVELOPMENT POLICY

IMF, World Bank, and International Development Policy

IMF, World Bank and International Development Policy

Introduction

The World Bank is a global financial institution that provides monetary assistance to nations worldwide. IDA, the International Development Associated is a child of the World Bank's structure and focuses on providing credits to countries with the sole aim of reducing poverty. Other grants provided boost economic growth, reduce income disparity and make significant improvements in the standard of living. The International Monetary Fund (IMF) is a specialized agency of the United Nations (UN) which works together with the World Bank to eradicate poverty and helps countries maintain economic stability through exchange rate stability etc. It also lends expert advice to countries facing an economic crisis (IMF, n.d). The World Bank and IMF work closely to implement International Development policy. There are multiple purposes of this essay. The first is to evaluate the roles of aforementioned organizations in international development policy, the separation of economic and social policy, and finally the increased securitization of policy after 9/11 and beyond.

Discussion

Analysis of World Development Reports of 1990, 2000/01, 2006 and 2011

World Development Report, 1990

The report, like its predecessors, provides social & economic data on up to 120 countries and address principal themes in world development. The report focuses on poverty as a central theme in world development, and discusses methods of reducing poverty.

Overview

Moderate economic growth achieved and enjoyed by the world economy did not hold true for the rest of the world. Industrial countries enjoyed increases in growth, investment, international trade etc. Per capital real incomes increased and poverty showed a downward, declining trend. Latin America and Sub-Saharan Africa, however, witnessed falling standards of living, per capita real income, and investment.

To achieve politically sustainable growth, especially in terms of poverty reduction, a two-way strategy should be implemented in world development. The first is the productive utilization of labor provided by the poor. The second is provision of basic social services such as health, education, family planning and so on. To complement the strategy, “safety nets” must play a pivotal role. Domestic policy will play a decisive role in poverty reduction however, this effort must be assisted with monetary, international aid.

Safety Nets and Transfers

Safety nets and transfers act as essential tools whilst combatting poverty on a global scale. Subsidizing and social employment schemes are two suggested ways to reduce poverty in rural areas within developing countries. For people who are unable to work, direct food distribution link is the most effective way to counter malnutrition (World Bank, 1990, n.d).

The World Bank's Rural Development Projects

There received substantial returns. The focus of these projects was to boost small-scale farmers' productivity and develop agriculture in rural areas. The rural development projects comprised credit for small-scale farmers, provision of infrastructure by construction of roads etc., and “direct investments”. However, World Bank policy for rural development will change to overcome the difficulties faced while carrying out rural development projects, as well as urban sheltering schemes in the future.

World Development Report, 2000/01

International Development Goals

The 2000/01 World Development ...