Acceso usuarios
Akram Neamah Ali
, Salam Abdul Rahman A.A. Al Ibraheemi, Hayder Majeed Abbood
Purpose: International economic institutions occupy a great position at the level of global economies by providing great financial support to member countries. These institutions also seek to study their position at the international level and the extent of their capabilities to confront the crises that afflict developed and developing countries, as they have contributed to addressing the crises faced by the countries of the world. Since its inception and the repercussions and potential risks that threaten its economic stability. The study aims to achieve several goals, most notably studying the concept of international economic institutions and their implications for international economies, knowing the tasks of the International Monetary Fund and the World Bank regarding loan policies, and clarifying the implications and risks of loans provided by the Fund and the World Bank on the reality of global economies.
Theoretical framework: To approve the hypothesis of the study and achieve its aims, a deductive approach is adopted starting from realistic constants in collecting data and facts, as well as adopting the descriptive analytical method in the study of international financial institutions.
Design/methodology/approach: The impact of the chaos witnessed by the First and Second World Wars prompted the international financial institutions to assume the responsibility of managing the international monetary system and ensuring global economic stability through the application of policies to achieve this and address the deficit in the balance of payments of the member states of these institutions.
Findings: The study hypothesized that despite the repercussions and risks of wars on developing and developed countries, the international financial institutions represented by the IMF and the world bank were able, through their tasks, to offer packages of loans to fill part of the deficit that these countries were exposed to, which enabled the countries to finance its economic projects.
Research, Practical & Social implications: The most prominent finding of the study is that what distinguishes the work of the international monetary fund from the world bank is the duration of time, as the fund provides short-term loans, unlike the world bank, which deals with long-term loans. Regarding the lending policy, despite the high-interest rates imposed on loans by international economic institutions, they are linked to structural measures that constitute an obstacle to the lending country.
Originality/value: The problem of the study lies in the fact that most countries of the world, whether developed or developing, are exposed to many economic problems as a result of their lack of international financing needs to confront the crises they are exposed to, forcing them to resort to international financial institutions to fill the deficit.
