Imf And World Bank In Africa

11 Pages 2746 Words

c crisis that hit the developing world in the late 1970s and early 1980s. African governments turned to the World Bank and IMF for financial assistance and were forced to accept the conditions attached to their loans as they were desperate at the time for funds to meet their growing debt obligations and their critical domestic needs,. The World Bank and IMF used this leverage to force economic policies to African countries. As the debt crises worsened through the 1980s and into the 1990s, Africa became even more dependent on the World Bank and IMF. These institutions thereby gained an increasing degree of control over African economic policies.
These policies have had terrible economic and social consequences. Average incomes across the continent have declined. Conditions of poverty have worsened in most countries, providing fertile ground for the spread of the AIDS pandemic and other infectious diseases. “The persistent economic crisis faced by African countries, compounded by the massive burden of debt to the World Bank, IMF and other external creditors, have denied them the resources they need to respond to the new health crisis and related challenges”(Ake 72).
The World Bank and IMF have decided to hold a public stance toward poverty reduction and social development programs recently. Although, these actions are more so an attempt to counteract criticisms rather than overcome the negativity of their attempts to assist these countries. The World Bank, in particular, says that its lending priorities have changed dramatically and that it is now the largest funder of health, education and HIV/AIDS programs. Recently, the assistance that the World Bank and IMF has offered is under the realization that it has been more harmful then helpful. The continent is only being placed in deeper debt as the structural adjustment programs neglect the ability for funds to be placed in greater areas of need. The money, which is owed to the ...