THE IMF AND WORLD BANK Essay Example | Topics and Well Written Essays - 1250 words

THE IMF AND WORLD BANK - Essay Example 1). With such goals and objectives of civilization’s best interest and financial well-being, the IMF’s and World Bank’s humanistic visions should be at the top of the list of the most essential and necessary financial institutions. It becomes somewhat anti-productive and fatalistic to envision ongoing threats against the IMF and World Bank’s purpose and comprehensive strategic plans. Is terrorism the eminent threat? However, appropriate checks and balances are part of strategic planning definitions and comprehensive operations. Who and what is the IMF? The IMF (known as the ‘Fund’) was created/constructed at a United Nations Conference in Bretton Woods, New Hampshire, USA in July 1944. Forty-four representative governments (The Governances) were in attendance at this conference. The visionary goal, purpose, and function were to construct a comprehensive strategic plan – a framework – for â€Å"economic cooperation that would avoid repetition of the vicious circle of competitive devaluations that have contributed to the Great Depression of the 1930s† (IMF, 2012, p. 1). IMF Activities and Public Goods The International Monetary Fund (IMF) has approximately 188 countries that participate in its global membership. The IMF manages the challenges and opportunities that are results of â€Å"globalization and economic development† concerning public goods. ... ncil (July 2, 1997), â€Å"†¦Good governance is important for countries at all stages of development†¦our approach is to concentrate on aspects of good governance related to macroeconomic policies – namely the transparency of government accounts, the effectiveness of public resource (public goods) management, and the stability and transparency of the economic and regulatory environment for private sector activity† (IMF, 2012, p. 2). The IMF’s role of governance and management of public resources or public goods during global economic crisis has been focused on restoration of growth and jobs. In doing this, the IMF has emerged as a public goods and resources management institution. The IMF is referred to an institution. By definition, institution means â€Å"†¦an organization, one dedicated to public service† (Webster’s College Dictionary, 1996, p. 360). In â€Å"Interview with Joseph Stiglitz (2000)†, by Lucy Komisar, Joseph St iglitz – member and chairman of the President’s Council of Economic Advisors – â€Å"cautioned against free market ‘shock therapy’ (Komisar, 2000, p. 1). In 1997, he became chief economist of the World Bank and often criticized the IMF and US economic politics†¦Ã¢â‚¬ peers assumed he will win a Nobel Prize† (p. 1). â€Å"I spoke with Stiglitz several times in April. He was generous with his time, unpretentious, and genial†¦Ã¢â‚¬  (p. 1). Stiglitz purposively states, â€Å"†¦The world needs an international development agency – the World Bank. There’s the view that it represents a form of corporate welfare that is counter to the IMFs own ideology markets. But anybody who watched government from the inside recognizes that governments need institutions, need ways to respond to crisis† (Komsisar, Stiglitz, 2000, p. 1). This is in response