IMF and World Bank Policies
What does IMF stand for?
International Monetary Fund
How has privatization affected employment in South Africa?
It has led to higher unemployment.
What happens to a country’s currency when IMF policies cause devaluation?
It loses purchasing power.
Why do some critics argue IMF policies favor multinational corporations?
They prioritize foreign investors over local businesses.
What is one way South Africa can strengthen its economy without relying on IMF loans?
Invest in local industries.
What is one key function of the World Bank?
Providing loans for development projects in low-income countries.
What is one way IMF policies have caused political instability?
Governments must follow IMF rules, often leading to protests and dissatisfaction.
How do IMF policies affect national debt?
They often increase debt rather than reduce it.
What is a major problem with IMF-imposed austerity measures?
They force governments to cut spending on essential services.
How can intra-African trade help reduce economic dependency?
It encourages regional cooperation and reduces reliance on external loans.
What is the main purpose of an IMF Structural Adjustment Program (SAP)?
To restructure a country’s economy by reducing government spending and increasing trade liberalization.
How have reduced public services affected education and healthcare?
Schools and hospitals receive less funding, leading to lower quality services.
Why does trade liberalization harm local industries?
It makes countries dependent on foreign imports, weakening local businesses.
How have SAPs impacted economic equality?
They have widened the gap between the rich and the poor.
What are three industries South Africa could focus on to diversify its economy?
Tourism, renewable energy, and small business development.