Institutions of Aid - IFI's - the WB and the IMF

  1. What does IFI stand for?
    International Financial Institutions
  2. When did the Bretton Woods Institution start?
    Started in 1944
  3. How many countries were at the gathering for the Bretton Woods Institution in 1944?
    44 countries
  4. What does the IMF stand for?
    International Monetary Fund
  5. Why was the IMF set up?
    To develop rules to regulate the monetary system and institutions
  6. Why was the WB set up?
    To lend to get the global economy going after WW2
  7. What did the Bretton Woods Institution set up?
    The WB and the IMF
  8. Quote about why the Bretton Woods Institution was set up
    • "Act as intermediaries between private international capital markets and the governments of developing countries"
    • Boas and McNeil
  9. Who said the quote about why the Bretton Woods Institution was set up?
    Boas and McNeil
  10. What else did the Bretton Woods Institution do?
    • Set the gold standard
    • Chose the American dollar as the backbone of international exchange
  11. How many components make up the World Bank Group?
  12. What are the 5 World Bank Group Components?
    • International Bank of Reconstruction and Development (IBRD)
    • International Development Agency (IDA)
    • International Finance Corporation (IFC)
    • Multilateral Investment Guarantee Agency (MIGA)
    • International Centre for Settlement of Investment Disputes (ICSID)
  13. What does IDA stand for?
    International Development Agency
  14. When was the World Bank - IDA established?
  15. Who were the biggest donors to the WB IDA?
    UK, US, Japan and Germany
  16. How much was pledged to IDA 17 (Agreed 2015-2017)?
    $52.1 billion`
  17. Why was the WB IDA set up?
    To lend to poorest countries on favourable terms
  18. How many countries are recipients of WB IDA aid (who have the largest source of grants and low interest loans)
    77 countries
  19. What GNI do you need to be accepted as a recipient of WB IDA aid money?
    As of 2015, under $1,215
  20. Who were the main recipients of WB IDA aid in 2014?
    India, Pakistan, Bangladesh and Nigeria
  21. How many countries have graduated from the WB IDA scheme?
    Over 36 countries including China and India (are now donors)
  22. What is the current emphasis for the WB IDA?
    Gender, fragile and conflict affected countries
  23. What % of WB IDA aid is loans and grant etc? breakdown
    90% portfolio loans interest free and long term 10% on grant terms
  24. How many members were there at the start of the IMF?
    29 members
  25. How many members are there in the IMF now?
  26. WB - Shifting Agenda - 1990s
    Wolfensohn oversaw a shift to a more "humane" bank
  27. When was Voices of the Poor?
  28. What has there been a focus on recently in the WB?
    • More recently gender, resilience, changing social norms and technology
    • Growing interest in participation, social capital, strengthening civil society
  29. When was the World Development Report?
  30. What was the World Development Report in 2000?
    Emphasis on poverty alleviation, empowerment
  31. What did Stiglitz quote in 1998 about the shifting agenda of the WB?
    • "More instruments and broader goals: moving towards the post-Washington consensus"
    • 1998, Stiglitz
  32. What was the WB rebranded as in 1996?
    Rebranded as a knowledge bank
  33. What was the original purpose of the IMF?
    Was to lend money for short term liquidity crises
  34. Who does the IMF generally favour?
    US, Japan, Germany, UK and France
  35. What are the 3 main purposes of the IMF?
    • Help prevent crisis
    • Smooth adjustment to shocks
    • Unlock other financing
  36. What does PRSPs stand for?
    Poverty Reduction Strategy Papers
  37. What are the supposed benefits of PRSPs?
    • Country ownership
    • Increased accountability of governments to citizens
    • Participation of citizens
  38. How often are PRSPs?
    Every 3 years (or longer)
  39. Who are PRSPs prepared by?
    Prepared by the member countries through a participatory process involving domestic stakeholders as well as eng development partners, including the World Bank and International Monetary Fund
  40. Purpose of the PRSPs?
    Describe the country's macroeconomic, structural and social policies and programs over a three year or longer horizon to promote broad-based growth and reduce poverty, as well as associated eng financing needs and major sources of financing.
  41. Definition of social capital
    Social capital refers to the collective value of all "social networks" [who people know] and the inclinations that arise from these networks to do things for each other
  42. PRSPs critique
    • Priorities remained the same
    • Co-opted participation
    • Technocratic - not enough about politics and power which effectively increased
  43. Social capital critique
    • Ignores power and conflict
    • Colonising by economics (Fine)
    • Over emphasis on civil society
  44. Social capital - quote
    "Conditionalities have started to reach beyond the economic sphere” Arne Ruckert
  45. What did Arne Ruckert say about social capital?
    "Conditionalities have started to reach beyond the economic sphere”
  46. Main borrowers of the IMF in 2014?
    Greece, Portugal and Ireland
  47. Differences between the IMF and the WB
    • Long term (WB) vs short term (IMF) at the beginning
    • A gradual merging or remits
  48. Shifting agendas of the WB - 1945-1970s
    • Technical assistance 1945-late 1970s
    • Development assistance focused on projects, particularly large infrastructure projects anticipated to lead to increases in national income
    • Started to shift under McNamarra (WB leader between 1968-1981) recognizing redistributional assistance to the rural and urban poor was needed, in terms of both finance and know how
  49. How did the WB start to shift under McNamarra between 1968 and 1981?
    Started to shift under McNamarra (1968-1981) recognizing redistributional assistance to the rural and urban poor was needed, in terms of both finance and know how
  50. Structural adjustment in Europe - info - Greek crisis
    • Greek crisis - IMF economic shock within the Eurozone
    • Troika "Brussels consensus" - 2002
    • Increased tax
    • Reduction in public sector services and salaries
  51. What is a troika?
    A group of auditors representing the Commission, the European Central Bank and the IMF
  52. Effects of the Greek crisis on Greece - Structural adjustment in Europe
    • Increasing poverty, unemployment
    • Widening gaps between class and gender, citizens and non citizens
    • Protest, new forms of economic activity and citizenship
    • (Woestman, 2012, Development)
  53. Who listed the effects of the Greek crisis on Greece?
    Woestman, 2012, Development
  54. Shifting Agendas of the WB - 1980s - more info
    1980s - Financial crisis prompted move to macroeconomic structural adjustment and the Washington Consensus:
  55. What was the Washington Consensus?
    • Market forces
    • Reducing the role of the state
    • Privatisation and deregulation
    • Opening up to Foreign Direct Investment
  56. IFI Power in Perspective - BRICS
    BRICS agree to capitalize development bank at $100billion
  57. What is the aim of the "BRICS agree to capitalize development bank at $100billion"
    • Aim: to help finance infrastructure and development projects in the BRICS countries and avoid finance crisis
    • Explicitly described as competition to IFIs
    • May help BRICS drive reform in the IMF
  58. Have the IFIs changed?
    • Despite significant changes in the global economy and several apparent shifts in policy, there has been little change in main thrust and operations
    • Continuity encouraged by need to swurvive as well as culture and norms shaped by economists
    • Recent challenges by BRICs have influenced IMF governance, but will that make IFIs better able to respond to poverty and inequality?
  59. IFIs - video - WB and IMF
    • Were both set up at the end of WW2 to rebuild the economies of broken Europe
    • Later, they began offering loans to poorer countries
    • Only if privatised their economies
    • And access to Western corporation to raw materials and resources
    • To get their policies implemeted in developing countries
    • Viscous cycle of poverty - debt cancellation still will not allow them to get them from poverty trap
    • Debts were occurred under pressure or something that was not for the best of the people
    • WB aim to help poor people - world development - socialism for the rich, little tax
    • Poor get poorer - interest debt owned to the WB
    • Indonesia handouts to the rich have been extraordinary
    • Up to 1/3 of the general aid of Indonesia, went to the corruption of individuals
  60. IFIs: What did Boas and McNeil claim about the WB and IMF
    "Act as intermediaries between private international capital markets and the governments of developing countries"
  61. WB success: IFI:
    • 310 immunised
    • 3 million more teachers
    • 118,000km of roads
    • 2 million aids patients treated
    • 13 million lives saved
    • "We invest in people"
  62. How much did the IMF loan to Greece to stop it from collapsing?
    The IMF provided 32 billion euros in loans to keep the Greek economy from collapsing
  63. The WB and IMF focus:
    • The WB focuses on financing and investing in developing countries, as well as eliminating poverty
    • The IMF primarily monitored exchange rates, establishes international monetary systems and fosters global financial cooperation
  64. How have the economies of the world changed since WW2?
    The world economies have become interdependent on each other through trade and investment. While this helps strengthen the global financial system, it also creates weaknesses in the economic chain. The balancing force of the IMF prevents any potential "domino effect" in collapsing economies
  65. IMF: % of votes and donations
    • Based on how much you donate
    • 16.74% of votes to the US and a contribution of $58 billion
  66. Supposed benefits of Poverty Reduction Strategy Papers?
    • Country ownership
    • Increased accountability of governments to citizens
    • Participation of citizens
  67. IFIS: 2016: What are the issues?
    • Money flows changing: access and distribution
    • Living in the past: need to be smarter with innovation and adaption
    • Too internally focused: need to focus less on surival and more on poor and vulnerable communities
  68. Critique of relations with southern csos?
    • Power inequality in relationships related to money, knowledge and reporting
    • But is this critique too simplistic? Will empowering Southern CSOs necessarily improve the lives of poor people?
  69. IFIs: WHat does CSO stand for?
    Civil Society organisation
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Institutions of Aid - IFI's - the WB and the IMF