Part A: Plan of Investigation
To What Extent has the International Monetary Fund Impacted the Democratic Republic of Congo under Mobutu Sese Seko? The International Monetary Fund (created in 1945) was conceived by the meeting of representatives of 45 countries in Bretton woods, New Hampshire, United States to support countries facing debt crisis. The aim of this internal assessment is to examine the effect the IMF has had on the Democratic Republic of Congo under the leader Mobutu. Many sources were consulted, including books, websites, and documentaries related to the IMF and the Democratic Republic of Congo. Part B will present the evidence and information regarding the IMF and the effect it had on the Democratic Republic of Congo under Mobutu. Part C will analyze two of the sources referred. Part D will analyze the findings, and Part E will conclude this internal assessment. Instead of lowering the national debt by loaning money, the IMF has inflated the debt because Mobutu stole the money from the people, which lead to an economic collapse.
Part B: Summary of Evidence
The IMF was created towards the end of the Second World War, and its goal was to rebuild countries’ national economies that suffered a loss by isolating themselves. “During the Great Depression of the 1930s, countries attempted to shore up their failing economies by sharply raising barriers to foreign trade, devaluing their currencies to compete against each other for export markets, and curtailing their citizens' freedom to hold foreign exchange. These attempts proved to be self-defeating.” (Cooperation and reconstruction (1944–71)) The IMF encourages free trade, and advocates for trading without restrictions. Although the IMF began taking shape in 1944, the IMF came into formal existence in December 1945 (Cooperation and reconstruction (1944–71)). However, since the 1970s, the IMF has been helping the poor countries through the Trust Fund, which was a loan to send money to developing nations or nations with heavy debt issues.
The IMF was created with 29 member countries at first, but grew to become an organization of 188 countries (List of Members). To obtain funding, a member of the IMF must request for a loan which can include a one time loan, or a loan in several increments and must comply by the instructions of the IMF. Most of the IMF’s resources come from member countries through its quotas, which are increments of money paid to the IMF by its members. The main decision making process comes from voting, and the votes are weighed by the country’s quota. Currently, the United States holds the main votes, and gives the IMF about 64 billion USD.
Mobutu Sese Seko (1930-1997) was brought up as the son of a hotel maid and a chef of a Belgian judge. He was educated in a Catholic mission boarding school where he left to meet a girl. When the priests found him, he was forced to serve 7 years in the Belgian Congolese army, the Force Publique (1949-1956). He became a...