How Does the IMF Affect Africa?


Quick Answer

The IMF, or International Monetary Fund, is a major cause of poverty throughout Africa. The claim is that this organization reduces poverty, but the debts and policies of the organization actually have the opposite effect.

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Full Answer

Many people look at the IMF and the World Bank together when discussing the cause of poverty in countries throughout Africa. The formation of both institutions dates back to 1944, and the goal was to stabilize the post-war global economy. Initially, the IMF offered unconditional loans to the various economies to try and stabilize circumstances. However, the conditions got stricter after pressure from the United States. The result was worse environmental and labor standards and a reduction in social safety.

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