The IMF and World Bank
1) MAIN DISCUSSION: READ AND COMPLETE ALL THREE SECTIONS A, B, and C.
The IMF and World Bank are the world’s two leading lending institutions, but much of their monetary assistance disappears once it enters the banking systems of developing countries.
A) Discuss information from the Webtext chapter reading and lecture that presents evidence that much of the monetary assistance and other forms of aid are stolen by government officials.
B) Explain in detail what other MAIN factors account for the misuse of these funds.C) How has the IMF and World Bank tried to control fraud, theft or corruption in developing countries?
NOTE! Class in answering these questions (Main Discussion), please provide sufficient and detailed content–short answers or bullet points are not sufficient. Please use complete sentences, include specific examples from the reading, and provide at least one reference. It is a good idea to refer to the Weekly Discussion guide (examples) before posting.
2) STUDENT TO STUDENT RESPONSE
Please respond to at least one (1) post from your peers. Consult the Weekly Discussion Guide and view the examples of Student to Student responses before posting.
3) INSTRUCTOR INSIGHTS: WEEK 2: REQUIRED
Class, as we move into Week 2, we saw that from Week 1, poverty is the very large central focus of many developing countries. Clearly there are many variables that are involved in the persistence of poverty among so many in nations around the world. Wealth inequality is usually well known for many of these countries, however, less well known is the fact that so many developing nations hold the majority of the world’s vast natural resources. These nations have great potential to develop through technologies (as many already have) to exponentially grow their economies to benefit all of their citizens, not just the very few who have gained a great deal of wealth.
Please view this short video and share your thoughts regarding the importance of growing jobs and energy in the country of South Africa.
Watch video south Africa is facing a jobs and energy crisis
User: n/a – Added: 8/6/19
YouTube URL: http://www.youtube.com/watch?v=yC2Hd5IVoHw
AND respond to this post directly:
A)Discuss information from the Webtext chapter reading and lecture that presents evidence that much of the monetary assistance and other forms of aid are stolen by government officials.
I think in any government there is a risk of corruption. Even with the amount of of government regulations and government oversight to try and limit corruption, there will still be government officials that find ways to steal. Some of the ways monetary assistance is stolen by government officials are bid-rigging, kickbacks and preferential treatments for selected government officials. In developing, countries kickbacks are a huge form of corruption because those that are in power have the means to keep themselves in positions of power by taking a kick back and favors from the political offices and banks that are loaning the money. In most cases, the population in these developing countries are uneducated and doesn’t have the resources to fight the corruption from their governments, so the cycle just continues.
Another way aid is stolen in these regions is through the use of military funding. In these regions, the military is heavenly depended upon to maintain peace and order and in most cases, military officials are not transparent with their spending, so they are able to steal millions from government funding and use for their own personal use. If there is no transparency, then there is no way to account for the mis obligation of funds which allows them the opportunities to steal
Explain in detail what other MAIN factors account for the misuse of these funds.
One of the main factors that account for the misuse of funds is in most developing countries there is not an honest bureaucracy established to oversee the finances. With as strong of a bureaucracy that the United States has and all the government oversight and various agencies created to oversee government spending that is still theft and corruption that occurs so I can only imagine how rampant it is in these developing countries.
C) How has the IMF and the World Bank tried to control fraud, theft or corruption in developing countries?
I think one of the main ways the IMF and World Bank have tried to control fraud is by being transparent and by having to account to more than one official.