Multilateral development assistance
Multilateral development assistance
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Involves leading to developing countries on non-concessional terms / with rates of interest and repayment periods determined in the market
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Ex. World Bank, African Development Bank, Asian Development Bank...etc.
The World Bank
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Development assistance organization that extends long-term loans to developing country governments for the purpose of promoting economic development and structural change.
The International Monetary Fund (IMF)
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Multilateral financial institution that was established jointly with World Bank in 1944 with the original purpose of lending to countries experiencing balance of payments deficit under the system of fixed exchange rates that existed at the time.
Presently, IMF is composed of 185 member countries, and has the purpose to
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Oversee global financial system
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Follow the macroeconomic policies of its member countries
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Stabalise exchange rates
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help countries that experience difficulties making international payments by extending them short-term loans on commercial terms.
Evaluating issue of the World Bank & IMF
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Implementing socially unsound project (World Bank)
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WB governance dominated by rich ocuntreis
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Excessive interference in countries' domestic affairs
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Conditional assistance
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Inadequate attention to poverty alleviation