International economic institutions serve western

International economic institutions serve western interests. Do you agree? The international economic institutions refer to the Bretton Woods institutions which are the IMF and World Bank which were created after World War 2 and GATT was also created after the war and later became the WTO. I agree with the statement, due to the disproportionate amount of power held by Western countries compared to the rest of the world and the fact that these institutions attempt to press or force western neo-Liberal values on the rest of the world. In this essay I will go through each individual economic institution explaining how they serve western interests and how recent reforms have attempted to curb western powers within these institutions and then I will later discuss how these institutions play out in terms of international political theories. The international monetary fund was set up in 1944 to head off any future world economic crisis similar in magnitude to the great depression and to manage the Bretton Wood’s fixed exchange rates. However over the decades it has gained the reputation of being the lender of last resort and have attempted to enforce neo-Liberal principles on countries who take the loans. This is shown clearly through the procedure of the Structural adjustment programme where it aims to create â€Å"a business climate attractive to investors †. They do this through prescribing Washington consensus politics which involves opening up markets to foreign competition, close down unprofitable markets; reduce public expenditure and privatisation programmes. This has served western interests as this opens up new market for western countries to exploit, as shown in Ghana where it â€Å"used to be self reliant on r... ...ns would act in their self interest when using IGO’s. Realists focus on the fact that liberals tend to overlook power politics which would be played out within these IGO’s. For Marxists they view the failure of IGO’s to spread wealth equally as the failings of the capitalist system where only the rich can gain and by allowing the poor to stay poor due to the greed of capitalism. Overall it is clear that in the past and currently the west have dominated the international financial institutions in order to serve western interests. However the west have started to lose grip of all three of these institutions as the emergence of the BRIC’s have forced the west’s hand, as they have hinted that they would create their own IMF . So I foresee a more balanced international institutions or the west facing BRIC led rival organisations in the form of the BRIC’s own versions.