Foreign Aid; Ethiopia and Ghana Free Essay, Term Paper and Book Report
After the Bretton Woods, two institutions emerged; IMF and World Bank. These
institutions were build to help developing or third world countries to help their economies
and bring them to a better situation, because some of these states were lacking funds for
education, healthcare or other means of social welfare. The intention of aiding a
country seems to be a good thing but it shouldnt be forgotten that these institutions
possesses a broad range of controls on a countrys economic policies; these can be
exchange rates, domestic credit creation, interest rates and fiscal imbalances. The controls
over the countrys economy were observed later by more specific controls that dubbed
Structure Conditionality, i.e; pricing policy, trade liberalization, privatization, structure
of taxes and government expenditure. These structural conditions showed an increase
after the mid 1970s just after new countries in Africa and South America entered into
IMF agreements. Countries that are poorer or tha......
Word Count: 3175
Page Count: 12.7 (250 words a page / double spaced)
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