They work like credit card companies, they will give you credit but with a ridiculous interest rate. Because of a history of oppression and turmoil, many countries do not give money to develop their own country. So they do the only thing they can, ask the IMF or World Bank for money. They give out loans with many conditions. These conditions are only in place to help the rich get richer and the poor poorer. If not the case why would they charge poor country interest rates of over 20% and feel they will be able to pay of the interest. Of course they function like a credit card, and make their money off of the interest rate. But this is not helping countries develop; instead it is a step backwards. Of course the argument can be made, why these countries are asking for loans if they know they can’t pay them back. The answer of course is they need the money to help its citizens, and if it is the only way to get it, they have no other choice.
These organizations also place many restrictions on the country they are loaning money too. For example, they limit the amount of exports, and the price of goods of these exports. Of course corporations like McDonalds, and Nike love these restrictions, because they can offer their goods at cheaper prices than local made counterparts. It is also relatively cheap to take your business there, once there profits go through the roof. It is practices like these that make many individuals hate these organizations. If it were not for greedy individuals trying to make a quick buck, they could actually help make a difference in a developing country, instead of leaving it in a worse condition. It is then why we see so many protest around the world. Below are some pictures of individuals at these protests.
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