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Obstacles to progress

Realities

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• Both institutions are hated across Africa and are seen as seemingly facilitating the m'zuŋ u
'extraction' that previously was associated with African slave trade and European
colonisation.

Summary
We must never forget that, as currently constituted, the World Bank and IMF are constrained by

• The dominance of USA (and by inference 'Corporate USA') resulting from USA dominating the
world economy during the period 1960-1980 (when USA GDP was c 40% of global GDP)

• The 'overhang' of treaties and alliances (both formal and informal) that formed between USA
and 'Corporate USA' and others - the existence of which takes decades to dissolve - and

which 'buffers' the determination of USA and corporate USA to 'keep things as they are'
• The structural imbalance in voting powers within the World Bank and IMF which currently

still effectively allow USA a veto on all proposals (even without the need to cajole allies of the
USA to vote with them)

• As with UK and its merger of DfiD with the Foreign Office, World Bank & IMF are heading in
the wrong direction.
The big question is 'where to now?'

• The reduction in USA domination of world economy, and the associated changes in the world
order won't in itself solve anything but will gradually remove probably the biggest impediment

to change in World Bank and IMF
• The fundamental problems of 'Debt Overhang' and the inequities of 'Market Liberalisation' will

still remain and unless properly addressed will limit future achievements
• The most achievable improvements lie within the workings of both institutions.

Key Criticisms
• Need for significant reform to voting structures, programme structures and oversight
This problem is compounded by the structure and functioning of the IMF and World Bank
boards where rich countries hold 62 per cent of the votes, despite only possessing 21 per cent

of the world's population and providing 23 per cent of the Bank and Fund's income.
Developing countries, who provide 77 per cent of the institutions' income and hold 79 per cent

of the world's population, have just 39 per cent of the votes on the IFI boards.”
"Denying democracy: How the IMF and World Bank take power from people." 241
World Development Movement.
Jones, T. and Hardstaff, P
*****

Independent evaluations continue to lack traction at IMF
" In July, the Third External Evaluation of the IEO (the Independent Evaluation Office of the IMF)

was published, reviewing the work of the IEO from 2013 to 2017. The evaluation, conducted by