International Monetary Fund and World Bank
Response to Logan
Logan, I love the fact that you clearly differentiated the missions and functions of the IMF and the World Bank by discussing them separately making it easy to point them out. In regards to the contribution that these two institutions have towards the international economic arena, I agree with you that the IMF offers loans to various nations for them to meet their international obligations. IMF is playing its role in the economic arena by being a credit union enabling its members to have access to different resources (Masters 1). This is the best way in which they show their financial commitment to the world. On the other hand, I agree with you regarding the role of World Bank which is supporting nations to reform their inefficient economic sectors. The main aim of World Bank is to ensure that the world is free from poverty a mission which is possible to achieve through greater equity that is pushing for currently to solve the conflict in the international economic arena (The World Bank 1). However, Logan, based on your statement that IMF results in the nations repaying the loans they obtain with hefty interest rates, does it mean IMF is bringing more harm than good in the international economic arena? Can IMF be regarded as efficiently useful in resolving world economic problems?
Response to Matt
Matt, I love the fact that you started your essay by enlightening the readers about IMF and World Bank in your introduction. I also noted that you managed to identify the similarity between these two major institutions in the world. I agree that the goal of World Bank is to eradicate poverty and ensure that less people are living below the dollar a mission which is possible to achieve (The World Bank). This is a long-term purpose just like you have indicated in your post because eradicating poverty in the world will take some time and requires good strategies. You have also mentioned that IMF has been conceived as an institution that deals with immediate and acute economic instability which can result in international economic and political conflict. This is true because of the high interest rates that it charges for the loans that it gives the nations to solve their monetary problems. How best can these two institutions especially IMF contribute efficiently without bringing more problems to the economic arena?
Masters, Jonathan. “The international monetary fund.” Cfr.org. Web. 9 Oct. 2013.
The World Bank. “Ending Extreme Poverty and Promoting Shared Prosperity.” Worldbank.org. Web 19 April 2013.