The World Bank and the IMF, advice on why you should reject it's loans.
What is the background behind the World bank and IMF?
The World bank and International Monetary Fund was created by the U.S. and British governments. It was created because they had the goal to create prosperity for all people. The IMF was established to reduce foreign trade restrictions and use its funds to aid other countries experiencing payment difficulties that they could continue trading without any problems. The World bank however was established because of the need for rebuilding cities and industries that were damaged during World War II. The World bank provides loans and advice to developing countries to influence the people in those countries and give a sense of protection to them.
Current issues that has an impact on developing nations.
Many nations today have their benefits but most of the nations that are having the most difficulty are developing nations. Developing nations are countries that have been globalized to the extent that they cannot pay off their debts without loans. Some of the positive impacts on developing nations is that most of the people are able to have new advancements and technology to know how to find out different information that is not readily given out. There are also greater opportunities for improved living standards. The negative impacts however are that people are still being exploited for labour and are also getting poorer than ever before.
The government of Adan should reject the loan.
I believe that the government of Adan should reject the loan from the World bank because its government policies ensure that they get repaid after the loan by requiring countries to cut spending on education and health, devalue national currencies to make their exports cheaper and reduce the countries ability to develop strong economies. The IMF and World bank also cater to wealthier countries more than developed nations. Because the wealthier countries have more money they are able to have more power in the means of business, production, and trades. The IMF are also funded with taxpayer money and make policies without the permission of other government agencies. Exploitation is also a huge part of the IMF, their policies are all for cheap labour which makes the countries' economy fall down to it's depths.
Strategies on how developing nations can achieve their goals.
Even though many nations can not afford to pay for most of the debts they have from all unpaid taxes, the ways that I would say are the best strategies to achieve your goals as a developing nation is first to try and make your nation a place that will save and spend less money instead of creating huge debts that you cannot pay. Another way your nation can achieve their goals is by making your nation independent by producing as many of your own resources as possible, as opposed to importing them from developed countries. This way you won't have to rely on other nations for funding or for resources. Developing nations should also try to make an education system that is set up based on the culture of their people and should teach the history of their people.
The potential gains for the government of Adan
The government of Adan could gain so much from having an independent nation because when a nation builds itself the outcome is always great when you use your resources to your benefit. Many of the independent countries today do not use the World Bank or the IMF and are still surviving and are more laid back than other countries of the world (like Canada and the United States), with debts so high that they are hardly managing to keep the nation together. What is best for the country for Adan is that you serve your people, have a humble lifestyle, and reduce spending.
Sources used:
The World Bank and IMF
By Tayla Hamilton
