New challenges and issues in international finance law

The purpose of this chapter is to thoroughly examine the current workings and operations of the World Bank Group - with a greater emphasis on the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF). Through this examination we aim to analyse the problems and perspectives of international financial architecture and come to some concrete conclusions about the future role of these institutions and whether they require some sort of reform. Equally, we examine the role of other multilateral development banks (MDB), such as the African and Asian Development Banks with a view to ascertaining whether they are effective in achieving their stated goals. One of the key themes that permeate this chapter is the lack of coordination between regional MDBs themselves and with the World Bank. Prior to the 2008 global financial crisis, this lack of coordination did not have a significant impact because the West was well used to endemic poverty in Africa and parts of Asia. Following this crisis, however, and given the relatively frugal financial reserves of all MDBs, it became clear that centrality of coordination was of paramount importance in achieving developmental goals. Overall, the Bank has failed to halt poverty or achieve any of its other goals. This is a general criticism that is directed against Bank policy that has not favoured the poor.