FULLFILLING THE EXPECTATIONS OF BEING ‘INTERNATIONAL’

ORGANIZATION: SALs CONDITIONALITY, REPRESENTATION WEIGHTS

AND THEIR EFFECTS ON LDCs

Abstract
One of the most negotiated subjects about Bretton Woods institutions is how equally situated
are those institutions to different socio-economic and cultural regions. Related to that matter
other questions are discussed on such as; effects of conditionality those International
Organizations (IOs) on Low Income Countries (LIC), Middle Income Countries (MIC) and
emerging economies (or newly industrialized countries NICs) or ‘are all countries
represented’ or at least ‘are interests of all countries taken into consideration?’ while
regulating regimes on international economy.
Today, while using the search engines for research about SALs for example, the majority
of titles are referring to the negative effects of SALs’ conditionality on developing economies
as well as the tough criticisms about unequal representation structure of those organizations
and unequal quotas etc. Furthermore a considerable number of economists attribute the
responsibility of sets in front of LDC development or even declining trend, on those
mentioned organizations. However the liberal perspective regards the domestic regulations
and policies to be blamed of the situation.
Fortunately the recent impressions give an undertaking of improvement on all negative
aspects. A new slogan that ‘we are all to blame’ can be inferred from the moods of the
governors of those institutions. Thus one of the most underlined issues of the last annual
meeting of IMF in Istanbul was the weak ‘voice’ of LDCs as stressed by Strauss Kahn
rapidly. ‘at least’ five per cent of representation weight is planned to shift from developed
countries (DCs) to LDCs. Of course it is not enough for sustainable growth and stability but it
is hopeful for the future to observe that those strong nations are aware of the fact that they are
obliged to bargain away some of their privileges in order to ensure their own stability. It is
obvious that all of the nations are interdependent especially in terms economic stability as we
rapidly witness how irresponsible behaviors or treatments of some individual states or IOs
initiate an overall worse-off.