chapter  17
49 Pages

International Institutional Linkages: The IMF, the World Bank, and Foreign aid

As we have seen in the previous chapters, developing nations have to make a wide range of choices regarding their development strategies. For sustainable development, we have seen that, in the final analysis, countries must draw primarily upon their own resources and capabilities. However, since virtually all less-developed nations are members of the IMF and the World Bank (or the IBRD, the International Bank for Reconstruction and Development), and since almost all of the poorest and some of the not-so-poor nations draw significant supplements to their savings and production capabilities from foreign aid, it is necessary for every student of economic development to acquire a basic understanding of the role of these institutions in the development process.1