The World Bank and the International Monetary Fund are both organizations who strive to help the world end extreme poverty through funding. The World Bank does this by providing low-interest loans, low-interest credits, and grants to developing nations to help these countries grow in sectors including education, health, agriculture, and more. The IMF does this by providing loans to these countries who can’t meet their international payments and find funding on things that they are in need of. The money lent by the IMF goes towards rebuilding reserves, stabilizing currencies, and paying for imports.
A critical voice I came across was during last week’s assignment, from John McArthur, who says that the World Bank doesn’t adequately carry out MDG efforts because of resentment of the UN and because they are, in his opinion, too overrun with economists. Another largely critical voice is the Brettonwood Project. Late last year a letter written to the World Bank’s president Jim Yong Kim by 28 UN rights experts criticized a number of problems, including how the Bank’s new draft social and environmental framework avoids mentioning specific references to human rights law.
Sub-Saharan Africa is one of the poorest regions in the world, if not the poorest itself. Social spending is defined as the funds that governments set aside for social programs such as helping the poorest citizens of the population. Social spending is so important because this is how countries strive to end poverty and it needs to be confirmed that the money is being spent in the right away so that the end result is a decrease in poverty. The country I chose to discuss is Chad. Chad’s Human Development Index as of 2013 is 184, which increased from 0.301 to 0.372 from 2000 to 2013. Though there has been an increase in the HDI, Chad and similar developing countries still need further assistance on the amount of funds and advice on how to use the funds from other countries to reach their goal of ending poverty and increasing their economy. The average life expectancy at birth for Chad as of 2013 is still only 51.2 years, with only 7.4 years of expected schooling. The life expectancy of Chad is about 5 years lower than the life expectancy of the Sub-Saharan African region so health should be a major focus.
Oxfam is another organization working to end poverty. They are another organization that has been critical of the ways the world has been trying to implement the MDGs. They cite one flaw as being that some goals, including water and child survival, have received more attention than other goals. Also, although there have been improvements in schooling, the quality of the actually schooling has been questioned. In short, Oxfam believes that there have been positive effects of the MDGs, but the goals need to be implemented in better ways.