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International Financial Institutions
The World Bank and the International Monetary Fund were created in the aftermath of World War II, to direct investments to the neediest countries of the world, the Bank, and to ensure international monetary cooperation, the Fund. These International Financial Institutions (IFIs) have changed their roles over the last few decades, becoming international advocates of controversial economic policies in developing countries.
IFIs sit at the heart of the global aid architecture. The World Bank is a major source of finance for developing countries and the IMF has a crucial function “signalling” which countries receive more funding from both official and private sources. These roles yield incredible power for the two institutions which have spread their wings well beyond their original mandates. The governance of the Bank and the Fund is severely skewed towards rich countries which dominate decision-making in these institutions.