THE IMF AND WORLD BANK’S ECONOMIC REFORMS: HOW THEY RAVAGED DEVELOPING ECONOMIES IN ASIA, AFRICA AND LATIN AMERICA AND LESSONS TO BE LEARNED

AUTHOR – SAMHITA RAJESH, STUDENT AT SCHOOL OF LAW, CHRIST (DEEMED TO BE UNIVERSITY)

BEST CITATION – SAMHITA RAJESH, THE IMF AND WORLD BANK’S ECONOMIC REFORMS: HOW THEY RAVAGED DEVELOPING ECONOMIES IN ASIA, AFRICA AND LATIN AMERICA AND LESSONS TO BE LEARNED, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 877-886, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This article critically examines the Bretton Woods Institutions economic reforms introduced in the developing countries of Latin America, Africa and Asia and how they had a detrimental impact on these regions. While these reforms were introduced as conditionalities for debt relief and bailouts in these countries they only ended up causing political instability, increasing poverty and causing economic stagnation. The reforms primarily examined are in the form of conditionalities and Structural Adjustment Programs. The case study of Latin America shows how these IMF reforms led to the lost decade, in Africa it exacerbated the poverty, unemployment and social discontent and in Asia it failed to manage the Asian financial crisis in an effective manner. The article advocates for a more localized approach while introducing trade and economic reforms and is a broader lesson in international trade law to incorporate local needs while integrating domestic economies with international economies and criticises neo-liberal policies which focus more on macroeconomic reforms, privatization, increased taxation, reduced role of the public sector, slashing wages and employment of public servants. There is a need for better representation, equitable and sustainable policies in the IMF and World Bank and the article elaborates on the same through the three cases. The article recommends a tailor-made approach to each individual economy with recommendations from local policy makers and civil servants to better suit domestic economies. The article essentially emphasizes that a one size fits all approach cannot be adopted while trying to reform diverse economies.