International Financial Institutions and Peripheral Formation: A Study of World Bank and International Monetary Fund

Abstract

International financial institution (IFIS) was established by more than one country to help in addressing challenges or crises of development at the same time to assist in planning and structuring economic development, investment imbalances, balance of payments rates to real economy, issues relating to global financial stability. The founders and shareholders of these IFIS are generally national or independent government, although other international organizations feature as shareholder. the study adopts qualitative research method (secondary data by reviewing available literature, journals, published data, reports etc. Dependency theory was used to guide the study. The study discovered that both IMF and world bank never play their role on a scale commensurate to the problems on ground especially in the peripheral formations, their efforts are hampered by concerns relating to the influences of such countries like France and United State of America. Other identified concerns are the legitimacy and effectiveness as well as conditionally attached.