Are The World Bank And IMF Serving The Interests Of Africans? Or It’s Time To Kick Them Out.

#africanews #imf #worldbank Since the Second World War, the main institutions of the Bretton Woods system,- the IMF and World Bank, have been in charge of the global financial system, with the main goal of supposedly alleviating poverty by giving financial assistance to countries in need. However, in recent times these institutions are rapidly losing their economic weight. And, the reason for this is that key actors in the developing world are currently coming to the fore, calling into question the outdated rules of the game, including the hegemony of the West. But, instead of just destroying the legacy of the last century, these key actors are offering an alternative economic system where each player can influence important decisions at the international level. This alternative is none other than the BRICS and the BRICS bank. How did the BRICS bank come about and how is it different from the World Bank and IMF? Let’s find out in this video. The idea of building an alternative financial system was because countries were fed up with the hegemony of the West in the global financial system and it was becoming apparent that the system favored rich Western countries to the detriment of countries in the Global South. For example, the International Monetary Fund claims that the reduction of poverty is one of its objectives and they do this by offering loans to developing countries to aid their development plans. However, countless research has revealed that these developing countries that borrow from the IMF usually experience higher rates of poverty. In one particular research, it was observed that from 1986 to 2016, IMF loan arrangements containing structural reforms that were supposed to help reduce poverty in about 81 countries mostly from Africa, contributed to more people getting trapped in the poverty cycle, as the reforms involve deep and comprehensive changes that tend to raise unemployment, lower government revenue, increase costs of basic services, and restructure tax collection, pensions, and social security programs.