IMF and World Bank structure .Have these institutions helped or hindered Papua New Guineas progress? Note: World Bank loan US$150 Millions for Agriculture and Roads Maintenance in PNG. Treasury Minister and IMF Chairman, Patrick Pruaitch, made the announcement in Washington DC at the IMF session. The World Bank was set up to finance long-term capital. Leading nations took on the obligation of contributing funds to enable the World Bank to make loans to capital -hungry countries like (Papua New Guinea). The International Monetary Fund (IMF) was set up to provide for the short term flow of money.The IMF was set up to lend dollars or other appropriate currencies to need member countries like ( PNG) to help them overcome temporary trade deficits. The IMF, with $100 billions, has more money to lend to poor countries than do the United State, Europe, or Japan (the three leading IMF shareholders) individually. Ever since the World Bank and the IMF were set up in 1944, their goal has been to fight poverty and aid development around the world. But the sister institutions have long been accused of favoring rich countries at the expense of poor nations like Papua New Guinea. The future of the IMF, the World Bank, and all other private sources of international investment will depend in part on extension of more credit to the Third World and developing countries like PNG, because credits means investment and productivity. Vital question we PNG need to asked : Have we been benefited from World Bank funding? Have we felt the pinch after our country submitted to IMF reforms? Does PNG need the World Bank and the IMF? And if not, is there a viable alternative?
Posted on: Thu, 24 Apr 2014 17:29:08 +0000
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