What has been the impact of World Bank upon development in the south - Essay Example

Comments (1) Cite this document
Summary
The SAPs have failed because they have always overlooked the microeconomic factors of risk in the adjustment.In Ghana the macroeconomic reforms designed to save the economies of the countries were not backed by specific measures for removal of the constraints…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
What has been the impact of World Bank upon development in the south
Read TextPreview

Extract of sample "What has been the impact of World Bank upon development in the south"

Download file to see previous pages According to the neo-classical economic theory, the financially weak countries should borrow money abroad to finance their investments and requirement. According to CIA (2009), United States has got the highest level of outstanding external debt, which is approximately $13,450 million. United Kingdom being the second and there are few other countries too. So it can be understood that neither the developing nor the developed countries are immune to the finance deficit problems. This context can be better explained through the dual-gap model, which highlights the aspect of motivation for introducing debt in growth model. This model states that there are two gaps, mainly foreign exchange gaps and saving gaps. These two factors might be scarce to support the growth of the developing countries (Daud, and Podivinsky, 2011, p. 2-4).
High levels of debt could also adversely affect the economic growth of any country. It can be also related to the debt-overhang theory. According to debt-overhang theory, the expected return of external debt is inadequate compared to the contractual value of debt. The heavy burden of debt on the developing countries drains their investments too and returns get taxed away. Apart from this high debt also negatively affect the investment rates and growth of the country because of huge cash flow and has effects of moral hazards. However, on the opposite side, if external debt is considered at the level of foreign borrowings, then it could have a positive impact on growth and investment of the country. The Laffer curve represents the relation between the investment and the face value of the debt. The expected amount for repayment falls when the level of outstanding debt increases beyond the specified mark. So according to the Laffer curve, the expected payment would reduce with the increase in the face value of debt (Zawalinska, 2004, p. 5-6). Since the past decades, policymakers and also academicians have taken keen interest in studying, and investigating theories to develop a link between debt and the economic growth of the global economy, but we would consider a few empirical studies to understand the concepts in this study. Abdelmawla-Mohammed (2005) supports the fact that external debt has a negative effect on the economic growth and development. Studies in about 61 developing countries have been conducted and results reveal that high debt can also create negative effects on the physical capital and productivity growth of the country. This study aims at focusing on the Structural Adjustment Programs (SAPs) of the World Bank and the impact of such strategies on the south. We would follow a well-defined framework to evaluate each dimension of external debt, its effects on economic growth, and effect of SAPs on the economic condition of the developing countries. Also a critical analysis of the negative aspect of SAP of World Bank would be done in this study. World Bank and its Initiative towards Poverty Reduction Richard Peet in his "Unholy ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What has been the impact of World Bank upon development in the south Essay”, n.d.)
Retrieved from https://studentshare.org/business/1400881-what-has-been-the-impact-of-world-bank-upon
(What Has Been the Impact of World Bank Upon Development in the South Essay)
https://studentshare.org/business/1400881-what-has-been-the-impact-of-world-bank-upon.
“What Has Been the Impact of World Bank Upon Development in the South Essay”, n.d. https://studentshare.org/business/1400881-what-has-been-the-impact-of-world-bank-upon.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
br
breitenbergshan added comment 1 year ago
Student rated this paper as
I had an issue with a essay types of works. All until I came across this website and this particular paper. Even though "What has been the impact of World Bank upon development in the south?" is far from my studies, the structure is so great that I use it all the time as an example for my own works.

CHECK THESE SAMPLES OF What has been the impact of World Bank upon development in the south

Economic Development in South East Asia

...boarders continue to dissolve (World Bank, 1993). Globalized economic structures have far-reaching repercussions on the economic scene. Major changes in economic climates, even within apparently localized but powerful economic structures, show profound impacts in the global economic system (Sundaram, 2002). For instance, the East Asian economy has heavy impact on the state of the South East Asian economy. Research is necessary to highlight the possible correlation or causal relationship between the South East Asian economy and the larger world economy. Information of this nature will be indispensable to...
16 Pages(4000 words)Term Paper

History of the World Bank. What is the impact of the world bank upon development in the south

...for environment has undergone major philosophical change. From the do -no-harm approach that stressed on lowering the harmful impact of World Bank's projects, it shifted to work on the environmental improvement that are considered to be associated with poverty and development(World Bank cited in Nath,2001,p.7).Environmental review has become crucial for lending and mandatory for some particular kinds of lending. Environmental Assessments (EAs) is mandatory for all World Bank's projects at not only project level but also on sector, and regional level. In doing so, the...
18 Pages(4500 words)Essay

World Bank- Globalization

...business activities particularly in the context of World Bank's operations. It will provide a fair understanding of the issues concerning the global business activities and the management caliber required to deal with those accordingly. Globalization and World Bank- An Overview The term 'globalization' has been illuminated by several authors through different words and perspectives such as Daly (1999), Ohmae (1995), Harvey (1996), Dicken (1998) and Brown (1992) etc. According to Ohmae (1995), globalization refers to eradication of all the obstacles coming in the way of social and commercial interaction. This explanation of the term...
12 Pages(3000 words)Essay

World Bank Anti-Corruption

...Introduction Corruption has become a critical area of concern in early 21st century political and development economy dis (Kaufmann & Vicente, 2005). To date there is no international standard definition of corruption in the field, and this has complicated efforts to monitor, measure and implement changes. Studies contend that the phenomenon of corruption severely inhibits socio-economic growth to have drastic consequences for developing nations through distortion of law and an undermining of institutions that are fundamental to development (Kaufmann & Vicente, 2005; World Bank, 2006a). Across several studies it...
4 Pages(1000 words)Essay

World Bank

...and the development. It has been built on Bank's research on the economic causes of conflict and has been developed as a part of Bank's social analysis method. It would ensure that the Bank activities do no harm in regulating any of the policies helping in poverty reduction processes, country assistance strategies and re-engagement strategies in LICUS countries (AEA, 2004). But as pointed by Lund, most researchers and conflict analysis frameworks do not assess a society's capacity to deal with emerging tensions and cleavages, and which may not determine whether it can sustain challenges...
12 Pages(3000 words)Essay

USA World Bank

...it in the current time frame. Situation Analysis Issue and Opportunity Identification Each year Managers at USA World Bank are required to launch a new product for their bank. This has become the tradition that the president and vice president of New Product Development brainstorm and then create an idea for the product and then present it to the Board of Directors for approval. In recent years the all the new products launched have been marginally successful therefore there is increased pressure on the president and vice president this year to deliver the goods. Without concurrent launching of new products, USA...
7 Pages(1750 words)Case Study

Case study World Bank

...player in the world market. The Forbes Capital Hospitality Index (FCHI) measures macroeconomic indicators like GDP growth and international trade, along with societal factors affecting investment, including poverty, bureaucracy, technological advancement, and corruption." (Ravindran) World Bank has been actively involved in setting the right scene for economic development within countries on an international platform. There is a general agreement that corruption within the country can be controlled by taking active measures to involve civil societies, but the degree of involvement is still a matter of consideration. "Social marketing...
3 Pages(750 words)Essay

The World Bank

..., guaranteeing potential losses with reluctant investors, or providing arbitration and mediation in investment disputes, they are encouraging growth. It is not just financial contributions, but also, environmental and humanitarian endeavors as well. In totality what has been created is a very dedicated entity, which is far more than the sum of its technical parts. The World Bank’s chosen mission is, ultimately, rather simple. They have one intent and supreme goal of ending global poverty. To do this they are deeply invested in projects dedicated to aiding those in poverty stricken, under-developed, and suffering populations all over the...
2 Pages(500 words)Assignment

World bank

...World Bank Contents Contents 2 Executive Summary 3 World Bank 3 Head Quarter 3 Operations and founder 3 Objectives And Mission 3 Member Nations 3 Products And Services 4 Projects And Operations 4 References 6 Executive Summary World Bank Group is an organization that has been developed with the sole purpose of eradicating poverty from the face of the globe. It started functioning during the period of 1946 and since the start of its operations it is [providing both financial and advisory services to its member nations. It helps them in developing reforms and provides them...
2 Pages(500 words)Research Paper

World Bank project

...World Bank project Introduction The World Bank has been very active in promoting development projects in the third world countries. Enormous resources have been set aside by the World Bank to aid in reinforcing developmental efforts by developing nations of the world. In 2014, the World Bank approved a grant to reinforce the Senegalese government efforts to improve the quality of workforce especially among the young people (World Bank, 2014). Senegal is...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic What has been the impact of World Bank upon development in the south for FREE!

Contact Us