Reasons for poverty and the role of IMF on reduction of poverty Term Paper

Reasons for poorness and the role of IMF on decline of poverty - Term Paper ExamplePoverty reduction is fundamentally dependent on the developing countries substantial efforts, particularly with regards to implementing reforms required to enhance economic growth. However, these countries usually lack required capacity to do this, as well as to effectively utilize potential foreign assistance. The IMF, which is a major foreign lender for developing countries struggling to end poverty, has began to play a critical role in helping poor countries develop capacity needed to achieve the Millennium Development Goals aimed at reducing global poverty (Whitman, 2011 p52). This paper discusses the reasons for poverty and the role that the IMF should play in alleviating poverty.There are several reasons why poverty is so widespread, especially in the developing nations crossways the world. One of the most stated causes of poverty is compound history of some of the poorest, developing countrie s in the world. Acemoglu and Robinson (2012 p66) contends that majority of the poorest nations in the world are former exporters of slaves to the certain world, as well as territories from which the colonial powers have systematically extracted preferences to be used in their countries. Although some former colonies have been able to overcome this resource outflow, such as Canada, Australia, and the United States, most of the other colonies suffer from the legacies of colonialism, which have led to conditions that prevent its citizens from accessing education, capital, land, and other resources required for a society to adequately reenforcement itself. For most of these countries and territories, one of the most debilitating legacies of colonial history has been poverty and inequality. Since most colonial powers settled and developed areas from which they were extracting resources, other regions in the same colonial territory were left grossly