Multilateral Institutions and Its Influence in National

Decision and Policy Making: The World Bank (WB) and

the International Monetary Fund (IMF)

The reading “The Creation of the Bretton Woods Institutions” by Eric

Toussaint (2007) was an eye-opener to the United States' (U.S.) behavior
throughout history as a leading power. What it seems to me—the U.S.
together with colonial powers designed a system wherein developing
countries are intended to fail and suffer. For instance, the World Bank was
observed to be disapproving or unwilling to loan industrial-related projects
that would help a developing country satisfy its domestic affairs and soon
after rely on its own. Additionally, the loans given to developing countries
must be paid back by purchasing goods and services from industrialized
countries or the North. Although this can be seen as “justified” or “normal”
payback because the money they used was mostly from the contributions of
first-world countries, the policy would have been more inclusive and
charitable if debtors could use what they earned to pay it forward to less
developed countries while still repaying their loans to the WB.

Barnett and Finnemore (2004) in “Expertise and Power at the International

Monetary Fund” explained all the basic information about the IMF, such as
its mission, structure, and autonomy. Firstly, the IMF is known to be founded
on the purposes of monetary cooperation, stability of globalization, and
balance-of-payments adjustments. Secondly, the IMF is designed for power
to reside on state members and not on a central group representative of a
lone country’s interest—power depends on the size of a country’s wealth and
prosperity. Thirdly, the IMF is independent in resources and does not have
to rely on governments or organizations—this means that when members
join the IMF, they contribute a one-time “quota” and additional costs are
only going to be paid if that member is interested. Essentially, the IMF banks
on its expertise and knowledge (i.e., great emphasis on staff and financial
stability), making it the primary reason why countries rely on them for
financial aspects.

Bibliography
Barnett, M., & Finnemore, M. (2004). Rules for the World: International Organizations in Global Politics. Cornell University Press.
Toussaint, E. (2007). The World Bank: A Critical Primer.

MARIANO, LUIS SIDNEY N.

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