| It is the assertion of this writer that the policies of the International Monetary Fund and the World Bank, contrary to stated goals, have worsened poverty conditions in very poor countries. Routine policy prescriptions applied by the agencies are shown to have inflicted direct harm to the poor population of developing nations for the sake of economic growth, sometimes without even actually accomplishing the targeted growth. The macroeconomic policies of the agencies during the fifty years of their existence have reflected a certain bias and have been insensitive to the human condition. Five highly indebted poor countries (HIPCs) are reviewed to test these theories, as well as to examine the efficacy of the agencies' HIPC Initiative for debt relief. Recommendations are made for appropriate policy reform at the Fund and the Bank, based on benefit to the poor, restrictions of agency charters, and likelihood of success. |
