The student discusses globalization and the roles of the IMF and World Bank. Globalization refers to increased integration between countries through trade, technology, and transportation. While globalization aims to reduce poverty, it also widens wealth gaps and causes job losses. The IMF was established in 1945 to promote global monetary cooperation and provide emergency loans. The World Bank focuses on development projects but is criticized for prioritizing large projects over health and education. Both organizations are criticized for imposing conditions without input and increasing debt burdens for some countries.

1. Student : Lara Alazem
Instructor :Dr.Rehana
Parveen
GLOBALIZATION, IMF AND WORLD
BANK

2. Introduction
 The world is changing everyday.
 The world is connected.
 New technologies are making the communication much easier and
faster than before.
 In my paper, I will introduce the concept of globalization. In addition
to the impact of the globalization on the nations. After that, we will
look at the most important two organizations who have participate in
the economic growth of many nations and to what extent they
helped the developing countries to survive, which are IMF and World
Bank.

3. Globalization
• It refers to the interaction between people, countries and
businesses.
• The economic globalization means having more integrated economy
and independent nations through the movement of goods and
services across the nation
• The reasons of the globalization:
1. Technology
2. Transportation
3. Banks
4. Multinational cooperation

4. Globalization• No one can deny the benefits of the globalization, but at the same
time it has negative impact.
• Globalization was aiming to reduce the poverty, however the reality
was different.
1. Globalization is widening the gap between the rich and the poor countries.
2. Many people have lost their jobs due to the globalization due to the
outsourcing.
3. Many manufactures have moved their works to other countries where the
labor cost is lower.
4. Globalization increase the global competition which may harm the
environment through building a lot of factories to meet the need of the
market.

5. International Monetary Fund (IMF)• It was established in 1945
• There was a large need for an institution that will oversee the international
monetary system and ensure the stability of interest rate.
• IMF started with twenty nine member country. Now 189
• The purposes of IMF:
1. Provide an institution that help in promotion of the international monetary
system, the consultation and collaboration on international monetary
problems.
2. Create confidence among the member of IMF by providing a large source of
funding.
3. Ensure the stability of exchange and avoid the competitive exchange
dropping.
4. Promote the expansion of international trade and help in maintaining high
level of employments and income.

6. Numbers of peoples have criticized IMF for several reasons. In these points, we have
summarized some of these criticisms:
1. There are a lot of conditions on borrowing from IMF.
2. It encourage the use free market policies which are not suitable for some countries
and some policies may lead to monopoly.
3. IMF imposes some policies without consolation among its member which considered
as lack of involvement.
4. It is causing devaluation.
5. IMF is helping and providing funds to military of dictatorial governments.

7. World Bank
• World Bank came into existence in 1944.
• It was aiming to reconstruct the economy that was damaged after the WorldWar two.
• After the establishment ofWorld Bank anther four organization came into existence that
together formWorld Bank Group:
• namely International DevelopmentAssociation (IDA)
• International Finance Corporation (IFC)
• Multilateral InvestmentGuaranteeAgency (MIGA)
• International Center for Settlement of Investment Disputes (ICSID)

8. Criticism
1. World Bank is becoming a corrupt and incompetent institution and there was limp
standers of lending.
2. World Bank is supporting project without taking into their account the
environment or the social effect of such projects.
3. World Bank focus on big project other than projects that may help poor people
such as health and education projects.
4. It is one of the most important source of the financial and technical advices, so it
may influence countries in making decision and eliminate any other perspectives.
5. World Bank is increasing the debt of the developing countries, thus they are not
helping these countries to solve their problem, so they are making it bigger.
6. Developing countries are no longer able to make its own decision because the
countries, that are considered the largest donors to theWorld Bank, will
dominateWorld Bank consequently will dominate developing countries.

9. Similarities:
1. Headquarter of the both organization is in
Washington, DC, USA.
2. They are controlled by the member nation’s
governments
3. They arrange joint annual meeting.
4. They focus on helping the countries in
developing their economic and financial
structure.
5. Most of the countries are member in these
organizations. Also, they have the same
member.
6. Both of these organization concerns with
economic issues.
Differences:
1. IMF is organization that oversees the global
monetary system.World Bank is organization
that provides loans and advices to developing
countries.
2. The World Bank focus on how to assist the
member to achieve economic development.
On the other hand, IMF focus on ensuring the
stabilities of the economics of its member.
3. The objective of the World Bank is to reduce
the poverty. On the other hand, IMF is aiming
to deal with fiscal, monetary policies and
exchange rate etc.
4. The size of theWorld Bank is bigger than
International Monetary Funds.
5. IMF advices the countries on deferent
financial issues, but the World Bank will lend

10. References
• Pologeorgis, N. (2016, March 18). How Globalization Affects Developed Countries. Retrieved December 6, 2016, from
http://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp
• R. (2015, March 18).The Positive and Negative Impacts of Globalisation on the Developing World. TheWritepress Journal.
Retrieved December 6, 2016, from https://writepass.com/journal/2015/03/the-positive-and-negative-impacts-of-
globalisation-on-the-developing-world/.
• Julia, M., & French, A. (2008). The impact of the globalization on the less developed countries.
(https://books.google.com.sa/books?hl=en&lr=&id=bPr7W9KgLRoC&oi=fnd&pg=PR3&dq=the+impact+of+globalization+
on+less+developed+countries&ots=2tYaEK3HhW&sig=SCWiqoiobBwdrn63NJolYG_l_4w&redir_esc=y#v=onepage&q=th
e%20impact%20of%20globalization%20on%20less%20developed%20countries&f=false)
• S. (2015, July 15). Difference Between IMF andWorld Bank. Retrieved December 6, 2016, from
http://keydifferences.com/difference-between-imf-and-world-bank.html
• Globalization and the Role ofWorld Bank. (2011, May 18). Retrieved December 8, 2016, from
http://business.mapsofindia.com/globalization/role-world-bank.html
• Globalization: A Framework for IMF Involvement. (2002, March). Retrieved December 6, 2016, from
https://www.imf.org/external/np/exr/ib/2002/031502.htm
• http://2012books.lardbucket.org/books/challenges-and-opportunities-in-international-business/s10-02-what-is-the-role-
of-the-imf-an.html