IMF and World bank

1. Salomo Ndeyamunye
yaNdeshimona

2. a) In what ways did the establishment of the
World Bank and International Monetary
Fund affect the people in Europe and Africa?
Explain your answer. (4)
It affected them positively because; it provided
loans to rebuild the countries after the WWII;
it financed projects that increased economic
development; it provided advices to developing
nations on how to develop their economies.

3. b) Why was the World Bank
established? (3)
The World bank was established to give
financial support to the poor nations. To
help European nations to recover from
the destruction caused by the WWII. To
lend money to poor nations

4. c) How important was the
establishment of the World Bank
and IMF? Explain your answer. (3)
It was very important. It financed
projects that advanced economic
development in poor nations. It provided
experts that helped poor nations to
develop their economy.

5. d) Name and explain two ways in which funds
were made available by the World Bank and IMF
to countries that needed such a fund. (4)
Borrower nations were expected to agree to the
structural adjustment program; countries were
expected to balance their budgets and make sure that
they pay their loans easily.
Borrower countries were expected to devalue their
currencies; countries were forced to lower the prices
of their currencies in order to qualify for the fund.

6. e) Mention any two reasons for
the establishment of the IMF. (2)
To organize monetary cooperation
between member states
To provide financial advice to less a
developed countries

7. f) Write a paragraph and explain how the
IMF makes the fund available to the
countries needed them. (5)
The International Monetary Fund is limited to the
contributions made by the member states. The
borrower nations were forced to agree to the
Structural Adjustment Program (SAPs). This
program required the governments to reduce their
spending. Countries were forced to privatize their
industries and devaluing their currencies. They also
had to promote exports in order to obtain funds to
repay the loan.

8. g) What did the countries of the World feel about the
lending policies of the both World Bank and IMF to the
third World countries? Explain your answer. (5)
Different Countries felt differently. Some felt good,
while other felt bad. Most of the African countries
were not happy because most of the projects they
supported had a poor social and environment results.
They imposed a free market on the borrower nations.
While some countries were happy especially the
developed nations because they borrowed the loans to
make themselves rich.

9. Thank you!
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