Question

Critics of the global institutions have a variety of complaints about the WTO, the IMF, and the World Bank. Explain the main categories of complaints.

Answer 1

There are 4 major categories of complaints against the World Trade Organization, the International Monetary Fund and the World Bank. Since the US is a dominant force in the financial markets and heavily industrialized nations dominate the global supply and demand of resources, there is a possibility that they will dominate the policymaking by the institutes for other nations as per their will. The policies may end up being harmful to few nations at the cost of improvisation of the dominant countries. The critics of these global institutions have brought forward the following

1) Issues with sovereignty: The global institutes may arm twist and force a nation to adopt policies against its will or its interests

2) Issues with ideology: There may be a conflict of interest when the bodies provide advise to other nations. They may be biased or rather eve bad advice depending on the nations' relationship with the United States of America and other dominant countries

3) Issues with transparency: The dominant countries, having their own interests at heart will influence decision making which may not be disclosed to one and all client nations.

4) Issues with implementation and adjustment costs: There will be differences in negotiation power of client countries and their ability to absorb the costs of implementing the policies effectively.