The Washington Consensus
Conditionalities for loans from the IMF/World Bank
1. Impose fiscal discipline
2. Reform Taxation
3. Liberalize Interest Rates
4. Raise Spending on Health and Education
5. Secure Property Rights
6. Privatize State Run Industries
7. Deregulate Markets
8. Adopt a competitive Exchange Rate
9. Remove Barriers to Trade
10.Remove Barriers to FDI
Originally designed to maintain stable exchange rates Headed by a European and developed by Bretton Woods.
International Bank for Reconstruction and Development (IBRD) Created by Bretton Woods in 1944 to help reconstruct Europe after WW2, and headed by an American. The World Bank proclaims a goal of reducing poverty, all of its decisions must be guided by a commitment to promote foreign investment, international trade and facilitate capital investment. The World Bank is comprised of 2 institutions, the (IBRD) and the International Development Association (IDA).
International Development Association (IDA)
IDA was created on September 24, 1960 and is responsible for providing long-term, interest-free loans to the world's 80 poorest countries, 39 of which are in Africa. IDA provides grants and credits (subject to general conditions (pdf)), with repayment periods of 35 to 40 years. Since its inception, IDA credits and grants have totaled $161 billion, averaging $7-$9 billion a year in recent years and directing the largest share, about 50%, to Africa. While the IBRD raises most of its funds on the world's financial markets, IDA is funded largely by contributions from the governments of the richer member countries. Additional funds come from IBRD income and repayment of IDA credits.