The World Bank sent a very ironic report claiming that “Africa can help feed Africa.” The irony of it is that it’s the World Bank and the IMF that cripples Africa from any form of progression.
The International Monetary Fund (IMF) is made up of over 180 states, each state contributing something towards the IMF which then determines their voting rights within the IMF. They can donate things such as resources, money, etc. Now it is no surprise that the country that is the largest shareholder of the IMF is the United States, with 18% control. The U.S. and other European states such as France, Germany and the United Kingdom have a combined control of 38% So the power (as usual) is held in the hands of the elite.
Due to the debt crises that took place in the 1980’s, the International Monetary Fund took the oh so caring role and began to ‘bail out’ countries from having their economy collapse by handing out emergency loans. Haha. Like any other loan, there are contracts and conditions that cripple the second party. The conditions are practically Machiavellian, but many nations fell for it because they believed they were jumping out of a sinking ship.
Now lets get something straight, if you borrow money off of a loan shark and fail to give it back, the loan shark will either take your belongings or break a bone. However, fail to pay back a payment from the IMF then they will gut your whole economy into further ruins. The IMF was clever in drawing out these contracts because they knew that the loans were so immobilising, the other party would not have been able to pay it back. Each country who has made contracts with the IMF know that they cannot pay the money back, so they try and settle the score differently. This usually means politically.
Which is why there are so many countries who are indebted to follow the EU and the U.S. without a second thought, because they have no other choice.