Negative Effects Of The Imf And World Bank Intervention Project

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The IMF and World Bank project have both negative and positive effects on a Nation’s. In this paper, the reader will be able to understand fully how the IMF and World Bank intervention project can affect a Nation if the funds that are meant for the development of that Nation are being mismanaged by the previous Leader. Finally, the reader will likewise see the negative impacts of corruption in a society. The IMF and World Bank Project and Its Negative Outcomes In 1965, a military coup d état led by General Mohamed Suharto took place in Indonesia that deprived them the possibility of shaping their own future. In February 1967, Indonesia officially returns to the fold of the IMF after the coup d état, 174 million dollars in aids was quickly granted to alleviate the country crises. What actually motivates the United States and Bretton Woods institution to actively back up Suharto dictatorship financially is because of the danger of sighting one of the most populated Nations on earth playing a major role in establishing a new world order.
Understandingly, the choices of these institutions were made based on political and geostrategic factors; consequently, Mr. Suharto became the world most corrupt leader according to a 2004 Transparency International report on corruption. He successfully uses this financial support to carry out policies that are contrary to human rights. The interest of the major Western power was well served by Suharto in the region’s which gave a chance

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