WORLD BANK

& IMF
 Table Of Content

01 02 03

WORLD BANK CASE ON IMF

WORLD BANK

04 05 06

CASE ON IMF CASE ON WORLD Heading Text

BANK & IMF
 CASE STUDY
IBRD Helps Jordan Meet Critical Financial Needs Through a Customized Financial
Solution
In 2018, Jordan was facing critical financing needs.
Expenditures increased as the country became the host to Syrian refugees, and
shouldered their financial burden coupled with an upsurge in security, energy, and
commodity costs.
Launched the Jordan Economic Growth Plan to get the country back on track by doubling
economic growth over 2018-23.
Government had to fund the debt repayments of the three international bonds maturing in
the next four years2, and close to 39 percent of the domestic debt maturing in the next two
years.
The World Bank worked on the second Equitable Growth and Job Creation Programmatic
Development Policy Loan with Jordan to support its inclusive growth objectives.
In June 2019, the World Bank approved a USD 1.45 billion Development Policy Financing,
the second loan in a programmatic series of two DPF operations.
In June 2019, the World Bank approved a USD 1.45 billion Development Policy Financing, the second
loan in a programmatic series of two DPF operations.
By selecting a customized repayment schedule, Jordan reduced the refinancing risk and adjusted the
amortization profile to meet their debt management needs.
The innovative financial solution helped immunize Jordan’s budget against potential reallocations away
from the critical development activities, such as the Jordan Economic Growth Plan.
1
1

4
 Case study :India
In 1991, India faced a severe economic crisis due
to

dwindling foreign exchange reserves,

A large fiscal deficit
high inflation
To stabilize its economy, the Indian government sought
assistance from the International Monetary Fund (IMF).
The IMF provided financial aid and expertise to help
India implement economic reforms, including
liberalization of trade, deregulation of markets, and
privatization of state-owned enterprises. These reforms
helped India restore macroeconomic stability, attract
foreign investment, and achieve higher economic
growth rates in the following years.
The World Bank and IMF in Developing Countries: Helping or
Hindering?
The presence of the World Bank and IMF in developing countries dates back as early as
1960s, when many nations in the developing world, Africa in particular, became
independent.
The World Bank and IMF have been present in developing countries since the 1960s,
focusing on providing technical and financial assistance for development and
enhancing economic growth and stability, respectively.
Despite their intentions, their positive contributions are overshadowed by significant
criticisms and negative impacts on developing countries' economies and societies.
The structures of the World Bank and IMF are Western-designed and dominated, serving
Western interests rather than those of developing countries.
Developing countries have limited representation and influence in the administration
and decision-making processes of these institutions.
Both the World Bank and IMF have been accused of perpetuating a dominance-
dependence system that favors foreign capital and benefits Western countries.
The World Bank and IMF in Developing Countries: Helping or
Hindering?
The institutions often impose Structural Adjustment Programs (SAPs)
that result in slow growth, increased poverty, and deteriorating social
services in developing countries.
Loans from the IMF and World Bank have been shown to retard economic
growth, widen the gap between the rich and the poor, and lead to global
economic instability.
Transparency is a significant issue, with both institutions lacking
openness in decision-making processes and facing criticisms for
ineffective operations and corruption.
The systematic aid provided by the World Bank and other Western
donors is considered ineffective and part of the problem in developing
countries' development.
Developing countries are encouraged to explore alternative international
financial and development institutions such as the New Development
Bank and the Asian Infrastructure Investment Bank to address their own
issues and reduce dependence on the West.
Impact of World bank and Imf on India
While the World Bank and IMF have played a significant role in shaping India's economic
policies and development trajectory, their impact has been mixed, with both positive
contributions and criticisms regarding their approaches and conditionalities.
Economic Policies and Structural Reforms: The World Bank and IMF have played a role in
advising and influencing India's economic policies and structural reforms. In the early
1990s, India embarked on a path of economic liberalization and structural adjustment,
which included measures such as deregulation, privatization, and trade liberalization. These
reforms were partly influenced by the policy recommendations of the World Bank and IMF.
Financial Assistance: India has been a recipient of financial assistance from both the World
Bank and IMF. The World Bank provides loans and grants for various development projects
in areas such as infrastructure, education, healthcare, and rural development. The IMF
provides financial support to India during times of balance of payments crises or when the
country faces macroeconomic challenges.
Impact of World bank and Imf on India

Criticism and Controversies: The involvement of the World Bank and IMF in
India's development process has also faced criticism and controversies. Critics
argue that the conditionalities attached to loans and assistance programs often
prioritize market-oriented reforms over social welfare and may exacerbate
inequalities within the country.
Sustainable Development Goals (SDGs): In recent years, the World Bank has
aligned its assistance with India's priorities under the Sustainable Development
Goals (SDGs), focusing on areas such as poverty reduction, gender equality,
climate change mitigation, and sustainable urban development.
 Conclusion

In conclusion, the International Monetary Fund (IMF) and the World Bank play
crucial roles in the global financial system. While the IMF focuses on stabilizing
exchange rates and providing financial assistance to countries facing economic
challenges, the World Bank primarily works to alleviate poverty and promote
development in developing countries through loans and technical assistance.
Despite criticisms and controversies, both institutions remain essential players
in shaping global economic policies and fostering international cooperation.
THANK YOU