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10/14 2021 The IMF and World Bank

    The International Monetary Fund (IMF) is known for promoting monetary cooperation and helping countries build and maintain strong economies. Even the world bank claims to provide technical and financial support to improve poverty reduction, which is debatable considering the fact that they are both deceiving the poor. The persistent moral hazards when rich banks lend money, create a cycle of mass debts for the poor. This is because once the money from the IMF and world bank goes to powerful figures, the money is used for personal purposes. Therefore, when the banks start soliciting their money, innocent citizens in poor areas who have not benefited from the money are coerced to pay. 
 
 It is surprising how these systems are created for a specific purpose, yet fail to achieve any of them fairly. I also found out that in Bolivia, some people spend 1/4 of their incomes on water fees. As the water fees rise, more people are unable to pay for medical and educational fees. With such dilemma, they have no choice but to utilize contaminated water. 

notes:
Bretton woods system 

international monetary fund (IMF) and the world bank- their boss would always be an American and the other would be European. the Mexican group was not allowed to do anything. Their plans were adopted.

moral hazard is when a bank lends someone without doing the check of where the money goes, or any sort of background check. 

odious debt 
Banks from rich countries lend money to presidents and powerful figures in other areas. Instead of using the money for necessary purposes, they use it for themselves. The banks will try to get the money back. IMF and the world bank would insist to pay back. However, innocent citizens in those areas who have not benefited from the money borrowed are forced to pay. only the rich benefit from this system. these rich country banks do not check where the money goes he they lend the money (moral hazard)


The purpose of the IMF is to fund money to poor countries, for health care, transport, they have the money to buy and build the things that they need.  

the poor countries would sell their forestry, oil, products and get the money from rich countries banks, but there would be no profit because they have to pay back to the IMF and the wold bank

free trade zone- area that is built in the poor countries that no laws apply, 
world wealth growth map 1975-2002

boliviia 1/4 of their income was spent on water fees, but if they used those money for water, they would not have enough for medical and educational fees. protestig¥ng for free water. these wealth transfers work h

worldmapper.org 

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