Global Financial Management
The World Bank and IMF have made adjustments in their activities and policies to suit changes in the global economy. Currently, IMF and World Bank have set strategies which will help achieve the goal of eradicating extreme poverty and attain equality in the world economy. The banks initiate programs and offer policy advice which consists of detailed information on how to eliminate poverty and the social measures to be incorporated to achieve the goal. Most of the countries suffering from extreme poverty are developing countries. The international banks considering including a debt relief policy for these developing countries, show consideration to diverse needs and problems. World Bank and IMF new policies take in to account different government expenditure routine. Thus the banks ensure that they offer a guideline and countries and give recommendations of financing the top priorities first. The Bank’s policies accept to take into consideration differences of country’s economies and recommend different social measures and monetary strategies.
In the last two decades, there have been continuous events of financial crises occurring, which greatly affected global business activities and caused stagnant growth of the businesses. International businesses often depend on global trade to keep operating. Therefore, since the financial crisis leads to the shrinking of the worldwide economy and replacement of imports with domestic products, businesses are left with no active trading activities, and that results in minimization of expansions.
Guyana is among the developing countries in South America, and the new crude oil industry will be able to improve its economic status. However, Guyana oil production is likely to face a crisis, including the financial crisis due to possible political and corruption involvement. Guyana needs to join business coalitions which will offer financial guidance on what is required to maintain the oil wealth without significant risks.
References
Dreher, A., 2004. A public choice perspective of IMF and World Bank lending and conditionality. Public Choice, 119(3-4), pp.445-464.
Hilson, G. and Laing, T., 2017. Guyana Gold: a unique resource curse?. The Journal of Development Studies, 53(2), pp.229-248.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.