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Old 02-19-2017, 11:03 PM
 
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In what ways are the IMF and World Bank harmful to African countries?
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Old 02-20-2017, 07:23 AM
 
Location: Macao
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Quote:
Originally Posted by Motion View Post
In what ways are the IMF and World Bank harmful to African countries?
The loan a ****load of money out at high interest rates to the country.

In addition, World Bank will hire out tons of consultants and construction companies from the western world, to discuss and plan and build whatever they are suggest is needed - for example, a large dam.

Than suddenly Country X is heavily in debt to World Bank and leasing out their electricity grid to regionally wealthier countries so they can pay those european/american consultants, construction companies, etc.
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Old 02-21-2017, 05:13 AM
 
Location: Near Luxembourg
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Quote:
Originally Posted by Tiger Beer View Post
The loan a ****load of money out at high interest rates to the country.

In addition, World Bank will hire out tons of consultants and construction companies from the western world, to discuss and plan and build whatever they are suggest is needed - for example, a large dam.

Than suddenly Country X is heavily in debt to World Bank and leasing out their electricity grid to regionally wealthier countries so they can pay those european/american consultants, construction companies, etc.
So tell us: what are your propositions to improve these structures?

IMF and World bank are supposed to give this money for free ? Like if giving billions to struggling countries wasn't risky -at all-? Well then you should give me your money with 0% interest rates....btw i'm not sure I will reimburse you entirely, but you are sweet so who cares if i reimburse only 50%?

Who ask the help of the IMF/World bank first ?

You should send your resume to these foundations, you could teach to these hundreds -stupid- colonialist white collars what is a proper consultant...
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Old 02-21-2017, 06:36 AM
 
Location: Macao
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Quote:
Originally Posted by Pokitobounto View Post
So tell us: what are your propositions to improve these structures?

IMF and World bank are supposed to give this money for free ? Like if giving billions to struggling countries wasn't risky -at all-? Well then you should give me your money with 0% interest rates....btw i'm not sure I will reimburse you entirely, but you are sweet so who cares if i reimburse only 50%?

Who ask the help of the IMF/World bank first ?

You should send your resume to these foundations, you could teach to these hundreds -stupid- colonialist white collars what is a proper consultant...
According the Development Studies....the contracts SHOULD be given to locals to survey the land, construct things, etc., on and on...and they should be doing business with locals to construct things, etc.

The current status quo is the consultants, workers, contracted companies are usually coming from a wealthier developed western nation.
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Old 02-21-2017, 10:22 AM
 
Location: Near Luxembourg
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Quote:
Originally Posted by Tiger Beer View Post
According the Development Studies....the contracts SHOULD be given to locals to survey the land, construct things, etc., on and on...and they should be doing business with locals to construct things, etc.

The current status quo is the consultants, workers, contracted companies are usually coming from a wealthier developed western nation.
Because it requires skilled workforce that doesn't -sorry- exist in most of countries that need this kind of help. Western countries invest each years thousands of billions in research and development / education. It's not something that popped from nowhere... It's decades of millions of brains developping new technologies...
What country in Africa will be able to provide geometers and technologies to evaluate the solidity of rocks 100 meters under a dam?
From where will come the concrete to build the dam? It requires very high technologies with a very specific chemical process? What about building the turbine ? Windmills that are even rare in most developed countries ?
ILS approach systems for international airports, who will install them ? Who will maintain them operational?
Who will install new powerplants from A to Z that must be tropical /sand proof ? What to do if there's a problem ?
The list is almost infinite...

Unfortunately, it's simple, countries that need help -specially africa- just... Don't have the workforce at all. High skilled africans leave their countries to stay in usa/europe and a margin only comes back.
That's why companies that can make things move come from abroad
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Old 02-21-2017, 11:16 AM
 
Location: Macao
15,951 posts, read 36,185,822 times
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Quote:
Originally Posted by Pokitobounto View Post
Because it requires skilled workforce that doesn't -sorry- exist in most of countries that need this kind of help. Western countries invest each years thousands of billions in research and development / education. It's not something that popped from nowhere... It's decades of millions of brains developping new technologies...
What country in Africa will be able to provide geometers and technologies to evaluate the solidity of rocks 100 meters under a dam?
From where will come the concrete to build the dam? It requires very high technologies with a very specific chemical process? What about building the turbine ? Windmills that are even rare in most developed countries ?
ILS approach systems for international airports, who will install them ? Who will maintain them operational?
Who will install new powerplants from A to Z that must be tropical /sand proof ? What to do if there's a problem ?
The list is almost infinite...

Unfortunately, it's simple, countries that need help -specially africa- just... Don't have the workforce at all. High skilled africans leave their countries to stay in usa/europe and a margin only comes back.
That's why companies that can make things move come from abroad
Well, the argument is why do African countries need to develop the same way as western countries do?

The other issue is Third World Debt...most of these countries in Africa get so deeply in debt because of these development schemes...that they have to adhere to incredibly strict World Bank & IMF rules that hurt their economy even more while shifting the wealth and continuing to enrich the western countries loaning the money out...
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Old 02-21-2017, 12:30 PM
 
Location: Near Luxembourg
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Originally Posted by Tiger Beer View Post
Well, the argument is why do African countries need to develop the same way as western countries do?

The other issue is Third World Debt...most of these countries in Africa get so deeply in debt because of these development schemes...that they have to adhere to incredibly strict World Bank & IMF rules that hurt their economy even more while shifting the wealth and continuing to enrich the western countries loaning the money out...
Heu...what do you call 'develop the same way as western countries do'?? Facts shows unfortunately that thousands of African people are risking their lives because they dream about the western world -I don't think the opposite is true-. Im sorry but without very strong education, energy, efficient networks &co, forget the idea to reach high standards of living...

And countries in danger call these institutions by themselves, because usually they have an incredible lack of everything so they need an external input.

But risky loans are what they are, you don't give 1 billion to Zimbabwe or whatever the country at 0% because you don't know if they ll be able to reimburse entirely. It's normal to pay the risk. It's this, or 0$ and people dying even more of famine. It's the way of the economy: you pay for the risk.

It's exactly like hearing these anti-UE screaming that everything is euro's fault. No it's their fault, people want to work 32h /week, free healthcare, job stability, 6 weeks of holidays and retirement at 60. But it has a cost and only countries like Qatar could afford this.
Well in parallel, if African countries could maintain their brains in the country and invest everything they can in education and not 20% of their gdp in a ridiculous army, it could change. Why would African countries fail where south korea, south africa, brasil, china, Singapore blablabla succed??

Ask s.korean if their western way of life is worse than the life they had 50 years ago... I already know the answer
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Old 02-21-2017, 12:43 PM
 
Location: Maryland
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The IMF lends money when private markets refuse to because of structural issues. The IMF in exchange for lending the money to these countries requires that the countries make structural changes. This is very reasonable, often times the structural changes are austerity measures or changes to trade policy. Since these countries rarely are able to execute these measures they fall behind on the terms and then political leaders blame the IMF for the issues.


The real reason though is that Africa lacks savvy leaders and trade advantages that can make it competitive in the global arena.
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Old 02-21-2017, 12:44 PM
 
Location: Maryland
18,624 posts, read 16,440,557 times
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Quote:
Originally Posted by Tiger Beer View Post
Well, the argument is why do African countries need to develop the same way as western countries do?

The other issue is Third World Debt...most of these countries in Africa get so deeply in debt because of these development schemes...that they have to adhere to incredibly strict World Bank & IMF rules that hurt their economy even more while shifting the wealth and continuing to enrich the western countries loaning the money out...
If there wasn't social media I'd agree with you but now that people in Africa can see how Europeans live many are now flocking to Europe. This unsustainable and even can put Europe at risk in the long term. It is imperative that African governments deliver a decent standard of living to its citizens.
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Old 02-21-2017, 08:39 PM
 
6,566 posts, read 9,079,396 times
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Originally Posted by EdwardA View Post

The IMF lends money when private markets refuse to because of structural issues. The IMF in exchange for lending the money to these countries requires that the countries make structural changes. This is very reasonable, often times the structural changes are austerity measures or changes to trade policy.
One complaint I've heard over the years is that the IMF too often comes with a "one size fits all" approach with their recommendations for these poor countries. Each country has unique circumstances that need to be taken into account when formulating economic reforms for them.
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