Describe the criticisms about decision making at the IMF and the World Bank
Which types of policies are thought to reflect bias? What types of costs are not considered? What is the fundamental question critics raise about the operations of the international governmental economic institutions?
Voting structures at the IMF and World Bank give developed nations, and the U.S. especially, control over decision making, making it hard to delineate whose interests are being served. For example, policies favoring free capital flows and privatization of publicly owned industries are thought to reflect the biases of industrialized countries rather than overwhelming economic consensus. Implementation and adjustment costs may be much greater in developing countries because they have higher overall levels of unemployment, less diversification in their economies, and fewer resources to develop new infrastructure or to do other spending necessary to take advantage of new opportunities. Fundamentally, critics ask whether they are fostering development and economic security or generating greater economic inequality and compounding risks to vulnerable groups.
You might also like to view...
Many of India's most talented people move to countries where doing business is easier than in India
Talented people leaving their own countries for countries where doing business is easier or where their job skills are in greater demand is known as A) fight-or-flight. B) export exodus. C) brain drain. D) in-migration.
In order for a taxicab to be operated in New York City, it must have a medallion on its hood. Medallions are expensive, but can be resold, and are therefore an example of
A) a fixed cost. B) a variable cost. C) an implicit cost. D) an opportunity cost. E) a sunk cost.
From 1929 to 1993, the first four years of the Great Depression, U.S. output dropped by more than
a. 10 percent b. 80 percent c. 5 percent d. 50 percent e. 25 percent
Economic progress
a. reflects that people are achieving higher income levels and living standards. b. requires that individuals work longer hours. c. indicates that scarcity is no longer a problem. d. indicates income levels are higher even though environmental and health conditions have worsened.