International Economic and Financial Institutions: An Instrument for Third World Dependency
The current international economic regime and the international financial institutions formed at the end of the Second World War is a product of the United States of America’s initiative with other few European nations contributing ideas not funding. As the saying goes, he who pays the piper dictates the tune. In fact, all is geared towards keeping the spoils of the hard won war, keep an open border and allow free movement of goods and services, avoid future wars as the present status quo favours them. This paper is aimed at tracing the origin, impact and trends of the present international economics with emphasis on the role played by the three most important international financial institutions namely the General Agreement on Tariffs and Trade/the World Trade Organization (GATT/WTO), the International Monetary Fund(IMF)and the World Bank (IBRD) in creating and maintaining African Underdevelopment and dependency. The institutions have greatly reduced rancour among nations through the implementation of free movement of goods and services, protection of property rights etc., but it has worsened the plight of the poor countries of the South which it has impoverished the more. The study recommends that the South should break out of this quagmire through the creation of regional agencies, the intensification of scientific research in indigenous technology among others and concludes that the Bretton Wood institutions were never meant for the development of the Third World Countries but for their continuous exploitation in favour of the advanced and industrialized countries of the world. Key Words: International economic, Financial institutions, Third world, Dependency.