The World Bank and the IMF as International Economic Institutions

Abstract

The world economic order created by the internatio¬nal economic institutions such as the IMF and World Bank - the Siamese twins born at Bretton Woods - did not benefit the poor countries and there is no pros¬pect for them to improve their living standards. Before the Bretton Woods era, they were colonies or semi-colonies and in the post-Bretton Woods world order they are facing a neo-colonialist regime. The activities of IMF and World Bank try to tie them more and more into the neo-colonial bondage. In the older or¬der, they faced long-term deterioration in their terms of trade and in the post-war years they continue to face the same fate. It is true that the economic order created at Bretton Woods is a definite impro¬vement over the disorder which existed in the inter-war years. But this is mainly for the rich and powerful countries and to some poor countries tied to the apron-strings of the powerful countries. But it must be remembered that if all the poor countries try to tie themselves to the apron-strings of some power¬ful countries it is unlikely for all of them to get a caring mother. So it is in the interest of the poor countries that the old order of Bretton Woods should be changed. Only unity and cooperation among the poor countries can lead to a consensus for a new world economic order with new institutions free from the blunt neo-colonialist ideology of the IMF and World Bank.