Writing Sample
A. Review of Related Literature
The following integrated literatures are significant in studying the relationship of the Central Bank and World Bank in the Philippines:
World Bank has been a significant financial institution in the Philippines since it was established in the country decades ago. Until now it remains its significant presence and its close ties with the Philippines’s Central Bank. “Short term Pain and long term gain” this is the motto of the World Bank but what we do not know is that they bring us long term Pain rather than gain.
The World Bank was known for enforcing liberalization in the form of devaluation of peso during Marcos’s regime in 1970. The economy was opened for foreign investments and imports. The country turned assistance to the World Bank and the IMF after acquiring huge trade deficits and mounting external debt. Following the devaluation there became a creation of a joint “Central Bank-IMF commission” to overhaul the debt management policies of the government and installation of an IMF resident officer inside the Philippine Central Bank. Significantly, the “Consultative Group” of “interested nations and agencies” is created under the joint leadership of the IMF and the World Bank. This is to monitor the external position of the economy and coordinate foreign assistance to the government. The World Bank had the primary responsibility for the composition and appropriateness of development programs and project evaluation including development priorities in the country. The powers of the World Bank together with its sister institution the IMF became a tool to manage the external debt of the country. (Bello, Kinley, & Elinson, 1982).
The World Bank tends to penetrate our financial system through giving financial aids to address chronic financial and economic crisis but micro problems arise that affects the development of our country like budget deficit, greater debt burden and high interest rates.
The following integrated literatures are significant in studying the relationship of the Central Bank and World Bank in the Philippines:
World Bank has been a significant financial institution in the Philippines since it was established in the country decades ago. Until now it remains its significant presence and its close ties with the Philippines’s Central Bank. “Short term Pain and long term gain” this is the motto of the World Bank but what we do not know is that they bring us long term Pain rather than gain.
The World Bank was known for enforcing liberalization in the form of devaluation of peso during Marcos’s regime in 1970. The economy was opened for foreign investments and imports. The country turned assistance to the World Bank and the IMF after acquiring huge trade deficits and mounting external debt. Following the devaluation there became a creation of a joint “Central Bank-IMF commission” to overhaul the debt management policies of the government and installation of an IMF resident officer inside the Philippine Central Bank. Significantly, the “Consultative Group” of “interested nations and agencies” is created under the joint leadership of the IMF and the World Bank. This is to monitor the external position of the economy and coordinate foreign assistance to the government. The World Bank had the primary responsibility for the composition and appropriateness of development programs and project evaluation including development priorities in the country. The powers of the World Bank together with its sister institution the IMF became a tool to manage the external debt of the country. (Bello, Kinley, & Elinson, 1982).
The World Bank tends to penetrate our financial system through giving financial aids to address chronic financial and economic crisis but micro problems arise that affects the development of our country like budget deficit, greater debt burden and high interest rates.
Bibliography: Bello, W., Kinley, D., & Elinson, E. (1982). Development Debacle: The World Bank in the Philippines. San Francisco: Institute for Food and Development Policy. Chossudovsky, M. (2003). The Globalization of Poverty and the New World Order. Philippines: IBON BOOKS. Classic Theories of Development: A comparative Analysis. (n.d.). Retrieved September 6, 2011, from http://www.aw-bc.com/info/todaro_smith/Chapter4.pdf Country Lending Summaries- Philippines Country Lending Summaries-Philippines. (n.d.). Retrieved September 3, 2011, from World Bank Web site: http://go.worldbank.org/RUAC8BAR00 Jose, V Sogge, D. (2002). Give and Take What 's the Matter with Foreign Aid? Manila: IBON BOOKS. The Philippine Banking Sector. (2003). Manila, Philippines: IBON BOOKS. Todaro, M. P. (1989). Economic Development in the Third World (Fourth Edition ed.). New York: Longman Group Ltd., London. Total External Debt. (n.d.). Retrieved September 3, 2011, from bsp official website: http://www.bsp.gov.ph/statistics/spei_new/tab17.htm Villegas, E