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

Reasons for poverty and the role of IMF on reduction of poverty - Term Paper Example mendicancy reduction is fundamentally dependent on the developing countries substantial efforts, particularly with regards to implementing reforms required to enhance scotch 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 converge a critical role in helping poor countries develop capacity needed to get 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 frivol in alleviating poverty.There are several reasons why poverty is so widespread, especially in the developing nations across the world. One of the most stated causes of poverty is colonial history of some of the poorest, developing co untries 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 developed world, as well as territories from which the colonial powers have systematically extracted resources to be used in their countries. Although some former colonies have been able to dominate 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 hold its citizens from accessing education, capital, land, and other resources required for a society to adequately support itself. For most of these countries and territories, one of the most enfeeble 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 aforementioned(prenominal) colonial territory were left grossly