The Impact Of Transnational Industries And Global...

This essay aims to explore and critically analyse the impact of transnational industries and/or global financial institutions such as the World Bank and International Monetary Fund (IMF) in the sub-Sahara Africa. It will explore the impact on health, economic, and environmental, political and cultural determinants on developing countries. A country in the sub-Sahara Africa region will be used as a prime example in dealing with some of the above institutions and their outcomes, and a conclusion given. INTRODUCTION The World Bank and the IMFs strategies and its impacts in the sub-Sahara region has come under scrutiny. This has prompted concerns of the region s development with some Africans and international organizations questioning if†¦show more content†¦Nevertheless, some political economists have argued that the continents underdevelopment is due to how the states were created with their political and economic link with industrialised nations. This as a result has led to industrialised countries experimenting ill designed development concepts in developing countries. Rodney (2012) argued that every nation has developed, however not on even economic grounds. He further stated that ‘’underdevelopment’’ is used by industrialised countries to exploit other countries. Background Body (1600-1800 words) The word bank and IMF are the two main global financial institutions that lend money to various developed and developing countries. According to Wolff (2013) these institutions came into being in 1944 after the Bretton woods conference to establish a firm global economy after the world war two. The purpose of these institutions was to stimulate a stable development and offer unconditional loans to nations in economic crisis so as to achieve their developmental needs (Wolff, 2013). However, these never saw the daylight, due to pressure experienced from the US legislatures, also known as the ‘‘Washington Consensus’’ which as a result led the IMF and World Bank to lend money with harsh conditions. Kingston et al. (2011) suggests that the Structural Adjustment Policies (SAP) programs in most cases have led to poverty in developing countries