Free Essay About The Role That International Organizations Play In The Effort To Reduce Poverty In The Poorest Countries In The World

Introduction

The international organization normally acts as pillars in boosting economic development and alleviating poverty in the developing countries. The international organizations normally work on treaties which are drafted and must be adhered to by the member states. However, it is notable that different international organizations, Multinational Corporations and Non Governmental organizations play varying roles in regards to alleviating poverty in the poorest countries. This paper will examine the role of IOs, MNC and NGOs in the effort of curbing poverty in the poorest nations.

Potential role of IOs

The majority of the international organizations were formed after the World War II to boost economic prosperity. One of the major functions of the International organizations is to provide capital assistance to the governments in the developing and the poorest countries. For instance, International Monetary Fund provides loans in the form of emergency lending. These loans are used by the governments of the poorest states in supporting their financial projects. Projects such as hospital programs, rural roads among other normally play a crucial role in the alleviation of poverty. The IMF also regulates exchange rate system. This helps in determining the depreciation and appreciation of the national currencies. Under this mandate, the IMF provides technical and policy, especially to the developing countries on how to maintain stable exchange rates. This helps in minimizing adverse economic effects in these countries such as inflation, which negatively affects national development.
World Bank, which is another international organization, works hard to alleviate poverty in the poorest nations by supporting projects that are aimed to minimize poverty in these nations (Zoellick, 45). The world bank provides loans to the governments of the developing nations.Such projects include education, support projects, agricultural projects, power plants, roads among others. These projects are scrutinized to ensure they are promoting development in the poorest countries which will reduce poverty. Nevertheless, the World Bank usually recognizes the debts as a sole responsibility of the state. This has been a hindrance to the organization’s efforts in reducing global poverty, especially where the government in the office is corrupt.Apart from lending money, the World Bank also provides knowledge of the developing nations such as how to create long lasting markets, formulation of institutional policies among others (World Bank ppt). It is also notable that the World Bank has been under heavy critics due to its dismal concerns over the climate change. However the organization has embarked on more projects that promotes sustainable growth and reduction of climate change, especially in Africa (Zoellick, 46). Combining these supportive functions and offering of loans has enabled the World Bank to improve lives in the developing and the poorest countries.

Potential role of NGOs

Non Governmental Organizations (NGOs) also play a crucial role in the alleviation of poverty in the poorest countries. For instance, NGOs usually act as an intermediary between the IOs and the poor countries or the targets of their funds (McNeil, 32). For example, Farm Africa usually organizes small holders’ farmers into small groups that are able to access technical and financial support from the International Organizations and Multinational corporations. It is also notable that NGOs helps in providing small holder farmers from the developing countries in the value addition to their farm produce (Lucas, 18). In case of NGOs in Uganda, they have in the recent past been helping farmers in using Cassava to make beer with the help of the SABMiller (Oxfam America, 26). Value added farm products fetch more money and encourage farmers in these developing nations to invest more time in their farms. As results increased yields and cash plays a crucial role in alleviating poverty in these areas. In addition, NGOs also play a crucial role in promoting democracy and stability in majority of the poor countries. For example, in Asia, Africa and some parts of the Latin America, NGOs have been vocal in encouraging public participation government agendas (Mallaby, 78). In addition, they have also helped in boosting openness in both private sectors and in the government’s decision making.

Potential role of MNCs

Multinational corporations play a key role in alleviating poverty in the developing nations. They engage in the Corporate Social Responsibility with an aim of improving the lives of the population in the area where they work on. A good example is the Shell Company activities in Nigeria in 1990s. After the Ongoni crisis of 1990s in Nigeria, the Shell Company came under heavy critics from the global human rights organizations on the ground that it is only emphasizing on its business objectives while neglecting the welfare of the Nigerians especially the Ongoni population (Bronwen, 14). Responds to the critics, the company participated in funding more development projects in the Ogoniland. By 1998, the Shell Company spent over US$ 43 million in funding projects in the Ogoniland (Bronwen, 16). The company funded projects in the refurbishment of hospitals and training of the youths. Such projects significantly reduced poverty in the Nigeria and in the Ogoniland in specific. Multinational Corporations such as Nestle have worked hard in creating value for the communities which they operate in (Lucas, 41). The company has in recent past initiated several projects in the developing countries, especially in Africa for supporting talents of young people. The growing of talents usually forms a basis for eradicating poverty in the developing countries.

How IOs, NGOs and MNCs interacts in promoting economic development

It is notable the three forms of organization usually works together in their efforts to alleviate poverty in the developing nations. For instance, the NGOs such as OXFAM and Farms Africa usually help the poorest nations to tap the financial aids from the international organization by acting as an intervention (Lucas, 43). Multinational Corporations have also fostered a healthy interaction with the NGOs globally by providing them with funds to sustain their development projects. For instance, Multinationals Corporations such as Microsoft, eBay among others have been working with NGOs globally by providing them with funds (Vikas, 20). The critics from IOs to the multinationals have also enabled them to embark on the development programs of supporting the development projects in the developing countries and alleviate poverty. For instance, the critics on the shell Company in Nigeria by the human rights group pressured the company to invest more in the Corporate Social Responsibility in the Ogoniland (Bronwen, 15). As a result, the company initiated more projects to boost the welfare of the Nigerians eventually supporting the poverty alleviation programs.

Conclusion

In a recap, the IOs, NGOs and MNCs all play a crucial role in the eradication of poverty in the poorest nations. However, it is notable that every form of organization plays a varying role in the efforts of curbing poverty. For instance, International Organization such as the International Monetary Fund has initiated initiatives by providing loans to the governments in the poorest nations to support the development projects. The IMF also provides the governments of the poorest nations with technical advices on how to maintain stable foreign exchange policies. Similarly, the World Bank also helps the developing nations in formulating effective policies to enhance the effective performance of the national institutions and decision making. The NGOs usually help the poorest nations in tapping the support of the IOS by initiating beneficial projects. On the other hand, the MNC promotes the projects of alleviating poverty by initiating corporate responsibility projects. The amalgamation of the efforts from the three forms of organizations has been a key pillar to poverty eradication in the poorest countries.

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Mallaby, Sebastian. NGOs; fighting poverty, hurting the poor. Foreign policy. Vol1 (144), 50
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