World Debt

World debt

1. during the age of imperialism mother countries created colonies in other parts of the world for extracting resources to build different products. They took the resources back to the mother countries and refined them into things they could sell back to the colonies. Basically the mother countries stripped the colonies of their resources and brought the wealth back to the mother country.
2. International organizations for example charities take money from donations from charities and use them to buy weapons to make their rein of power last longer through fear.

1. International Monetary Fund (IMF)
   -The IMF was created in 1944 with 29 countries agreeing to it. The IMF supplies money to countries in need.  They basically lend money at an interest rate of 3.48%.

-The IMF’s job is to lend money to countries in need.  The IMF acts like a bank and lends money to poor countries and countries in need at a stranded interest rate. (Surveillance, Lending, Technical assistance).
- Like a bank the IMF is in the business of making money and not losing it. It lend to countries in need. When the money is lent the country is expected to pay back with interest. When the country can’t pay back the money the country has to pay interest on the loan. This happens usually when the government is corrupt and takes the lent money for it self. The debt for third world countries is big.

1. World Bank

-The World Bank was created during the Bretton Woods conference in 1944. It was created like the IMF to help countries who need money to fund major projects. It was the answer to solve the worlds funding problems. 
-Like the IMF it lends money out with interest. If the money is not paid back the interest keeps adding up and the country has to pay back more and more.

C. World Trade Organization (WTO)

             -General agreement of trade and tariffs was created in 1947 but was later named the world trade organization. The World Trade Organization.  It represents 95% of the world’s trade.

            – The trade between rich countries and poor countries has not contributed to the debt owed by poorer countries.  In some cases poor countries have been importing too much and have not been exporting as much. This causes a debt. Free trade promotes other wise though.

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