World Bank, the International Monetary Fund, and Neoliberalism

The World Bank and the International Monetary Fund (IMF) are arguably the two most influential international global economic institutions. Since World War II, both have been central to restricting the global economic system, including trade, economic development, debt service, and macroeconomic policy. Since the 1980s, concerns about these organizations' policies have been raised. Critics lament the harshness of structural adjustment and conditionalities—policy changes required by the World Bank and IMF—which are seen to reflect neoliberal political and economic philosophies and the interests of lenders, rather than the broader goals of human and economic development. This approach views states, regulations, and taxation as anathema to good economic functioning and encourages deregulation, reduced taxation and tariffs, and the privatization of the public sector, as well as cuts to basic services such as health, education, and welfare programs. Criticism has led to some reforms and scholarly debate, but the central concerns around debt in developing countries, poverty, unfair trade, and drastically cut public services remain.