The hypothesis that IMF lending is subject to “political influence … cannot be discarded”, according to Andrea Presbitero and Alberto Zazzaro in the autumn 2012 edition of the World Development journal. They found that “financial exposure of foreign banks and the amount of G7 direct foreign investments in a developing country significantly increase the size of the loan the latter can obtain”. Additionally the severity of the crisis most affects the degree of low- and middle-income member countries’ participation in IMF programmes for those nations “which are political allies of G7 governments”.
15 September 2012
Renewed calls for a substantial SDR allocation raise urgency of reforming the inequitable global reserve ‘non-system’.
Donate to the Bretton Woods Project
The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).