Chapter 10 Chapter Summary

This chapter examines the history and policy prescriptions of two international financial institutions that have had a profound impact on international development over the last 70 years: the International Monetary Fund and the World Bank. Although both institutions were set up under the auspices of promoting international economic stability, economic growth, and development, their governance structure, policies, and conduct have been shrouded in controversy. In examining their subsequent evolution and expansion from the time of their establishment at the Bretton Woods Conference in 1944, the chapter focuses on the role of both institutions in promoting Structural Adjustment Programs (SAPs), which have proved to be particularly controversial since the 1980s. It explores how the institutions responded to criticisms during the 1990s, with specific reference to their changing approaches to tackling poverty during this period. The chapter addresses how the institutions have reacted in the face of the global economic crisis emerging in 2008 and looked at recent reforms that are intended to increase the voice of developing countries within both institutions.