chapter  6
14 Pages

Groupthink

The IMF, the World Bank and decision making regarding the 1994 Mexican crisis
ByNgaire Woods

The International Monetary Fund (IMF) and the World Bank (International Bank for Reconstruction and Development) each have the responsibility to rigorously analyse and monitor economies across the world. For the IMF, ‘surveillance’ of countries making up the world economy, as well as the need to impose conditions on those using Fund resources, requires the institution to provide accurate and precise analyses. The World Bank has a mandate to finance investments and promote economic growth, and to provide expert advice to help governments make specific sectors of their economies more efficient and relevant to national development goals. These responsibilities equally require accurate research and the monitoring of members’ economies.