World Bank and IMF

The World Bank and International Monetary Fund (IMF) are the largest and most influential of the International Financial Institutions (IFIs). Along with smaller regional banks, they have a huge influence on the economies of developing countries.

Often referred to as the Bretton Woods Institutions, the decisions of the World Bank & IMF affect the lives of millions. However, the damaging strings that the World Bank & IMF attach to aid, loans and debt relief often make it more difficult for poor countries to effectively tackle poverty.

These strings and conditions, combined with the technical advice they give, often force poor countries to cut vital spending on health and education, or to privatise their public services.

ActionAid is part of an international campaign to end the damaging strings and conditions the World Bank & IMF attach to aid and debt relief.

Tying aid and debt relief to economic policy conditions such as privatisation is undemocratic, ineffective and often causes more harm than good.

Rich nations dominate the World Bank & IMF. For example, the UK has a bigger say at the IMF than all 42 countries of sub-Saharan Africa combined. Rich countries are also able to maintain influence over the institutions through the process of selecting leaders: the head of the IMF is always a European, while the head of the World Bank is always an American.

Poor countries urgently need to have their voices heard at the World Bank & IMF, so that they can challenge the policies that most affect their citizens.

ActionAid is calling for the World Bank and IMF to be truly democratised, with board composition and voting power rebalanced to make sure that developing countries are able to represent themselves fully.

photo : ©Laurence Watts/ ActionAid