Sub-Saharan Africa And Its Effects On Developing Countries

The abovementioned effects caused by the Bretton Woods organisations are obvious reasons why many developing countries do not approve of the arrangements enforced by the IMF and the World Bank. To illustrate these issues, real world examples from some developing countries will be referred to. Somalia, in Sub-Saharan Africa, is a “pastoral economy based on exchange between nomadic herdsman and agriculturalists” (Chossudovsky; 1997: 101). The intervention by the IMF and the World Bank in the 1980's instituted an agricultural crisis within Somalia through the enforcement of harmful economic policies which weakened the relationship between the pastoralists and the agriculturalists (Chossudovsky; 1997: 101). The IMF enforced a Structural Adjustment Programme within the country where food aid was provided resulting in Somalia's dependency on imported grain. …show more content…
This eventually led to the deterioration of the majority of local crop fields. This left many farmers with limited or no sources of income. The impacts of the SAP in Somalia led to the collapse of the infrastructure, detrimental effects to the local grain markets and the mass inflow of food aid brought on the impoverishment of the farming communities (Chossudovsky; 1997: 102). The IMF - World Bank intervention policies brought on a chain of destruction within Somalia. The decline in the nomadic herdsmen community due to starvation decreased livestock numbers causing a breakdown in the economic exchange with the agricultural community. The entire economic system