In 1999, the IMF and the World Bank initiated the Poverty Reduction Strategy Paper (PRSP) approach—a country-led plan for linking national policies, donor support, and the development outcomes needed to reduce poverty in low-income countries.
Monitoring progress on the MDGs.
Since 2004, the Fund and Bank have worked together on the Global Monitoring Report (GMR), which assesses progress needed to achieve the UN Millennium Development Goals (MDGs). The report also considers how well developing countries, developed countries, and the international financial institutions are contributing to the development partnership and strategy to meet the MDGs.
Assessing financial stability.
The IMF and World Bank are also working together to make financial sectors in member countries resilient and well regulated. The Financial Sector Assessment Program (FSAP) was introduced in 1999 to identify the strengths and vulnerabilities of a country’s financial system and recommend appropriate policy responses.
In any capitalist society, the third world debt would be wiped out. The Banks who have made the risky loans would have to accept the losses, and the dictators and their entourage would have to repay the money they embezzled. The power structure in society however, prevents this from happening. In the west tax payers end up assuming the risk while the large banks run off with the high profits often derived from high risk loans.
In the third world, the people end up paying the costs while their elites retire. It is important to realize that the IMF and World Bank are tools for powerful entities in society such as trans-national corporations and wealthy investors. The Thistle believes that massive world poverty and environmental destruction is the result of the appalling concentration of power in the hands of a small minority whose sights are blinded by dollar signs and whose passions are the aggrandizement of ever more power. The Thistle holds that an equitable and democratic world centered around cooperation and solidarity would be more able to deal with environmental and human crises.
Conclusively, although many challenges have befallen the IMF and World Bank, have really tried to embrace their contribution towards economic development in developing country but still there is much to be done for the same to be fully embraced.