Foreign Aid

  • There is a wide disparity between the world's rich and poor countries. The World Bank is a U.N.-sponsored organization composed which is primarily controlled by wealthy countries. The World Bank is responsible for providing grants and loans to underdeveloped countries as well as developing effective strategies for improvement. The International Money Fund also provides assistance to the world's troubled economies.

  • With increasing fequency, the World Bank and IMF are providing "structural adjustment" grants and loans which require that the donee country make specific policy changes. This policy is criticized by some as unfair interference in the economic and political affairs of these countries. But supporters maintain such conditions are critical to insure that the funds are actually spent on development and not squandered through corruption.