How IMF and World Bank Influence Developing Nations: Debt, Conditionality, Economic Reforms and Global Financial Power
How the IMF and World Bank Influence and Shape Developing Nations: Debt, Policy, and Global Power The International Monetary Fund (IMF) and the World Bank are two of the most powerful financial institutions in the world. Established in the aftermath of World War II to promote global financial stability and reconstruction, they have since become central actors in shaping the economic policies of developing nations. Supporters argue that these institutions provide essential financial assistance, technical expertise, and stability during crises. Critics argue that their loan conditions, structural reforms, and policy prescriptions create long-term dependency and limit economic sovereignty. To understand how the IMF and the World Bank influence developing nations, we must examine their structure, lending mechanisms, conditionalities, voting power dynamics, and real-world outcomes. The Origins: Bretton Woods and the Creation of Global Financial Governance Both the IMF and the World Bank wer...