IMF - Admission/Application Essay Example

IMF and World Bank What are IMF and World Bank? These are Bretton Woods s that dealwith giving of loans to needy nations and especially the third world countries for development projects. It was established by United Nations but is funded by rich nations such as US and Britain with US being the largest funder and contributor. They were established in the 1940s and their aim other than giving loans for projects also aim at reducing poverty, reducing the external debts burdens, assess financial stability as well as monitor the progress of the Millennium Development Goals.

How do they operate?They provide loans to the needy nations that have requested for the loan. After the loan application, they process the loan and give it. This is however not without conditions as explained by Perkins (2011). These institutions are controlled by US and hence they set high conditions for these nations when they fail to be able to repay the extremely large loans. They treat these nations as extensions of US and hence rule them indirectly by controlling their budget and even security arrangements among other things.

The people who suffer the most are the taxpayers as majority of the development money is put into the pockets of the leaders and these two financial institution know that and use it to their own advantage. What these institutions do is therefore hoodwink the third world nations with the pretense of wanting to assist them only to burden them with more loans and then rule them on behalf of their donor nations especially the US which is on the forefront of this grand scheme.Work CitedPerkins, John.

Hoodwinked: An Economic Hit Man Reveals Why the Global Economy Imploded-And How to Fix It. New York: Crown Publishing Group, 2011.