My topic [Outsourcing of American Jobs] and International Financial Institutions don’t really share many similarities in goals or origin. However, outsourcing and IFI can be discussed on an economical level.
- Outsourcing in essence is a tool that is used by companies in developed countries to reduce cost and increase efficiency.
What is happening is that companies in developed countries are realizing the increase in developing their goods in undeveloped countries. In our scenario American jobs are outsourced to countries such as the India, China and Japan.
The IFI’s provide money that is loaned out to undeveloped countries to stimulate economic growth and reduce poverty. The idea of having an IFI’s such as the World Bank in theory is rights, however the reality is that it’s a trap used to keep undeveloped countries from economical success by keeping them in dept.
The World Bank initially was created to serve as a transitional solution for war-struck countries that were rebuilding their economy. Today, the World Bank serves as multi-million lender to undeveloped countries. The idea of having IFI’s organization such as World Bank theoretically are right, however they are not the solution for poverty struck countries. No matter the amount of money undeveloped countries are willing to invest into their economy their results will not be immediate or effective. How can one expect to turn around the economy by simply investing millions of dollars into an undeveloped country? That is where “outsourcing” comes in.
When undeveloped countries attempt to develop economical partnership with America (other developed countries), there might be a chance that they would throw a means of production at them. India is a perfect example of such an event. Prior to the technological boom , India used to be considered a undeveloped country suffering from a weak economy. Today however, India is reckoned as one of the fastest growing due to the influx of money that is coming in from “outsourced jobs” , and several other conditions.
Our blog is not oriented on weather or not outsourcing of American jobs is right. However, we do see outsourcing of American jobs to undeveloped countries as a better option then lending money from IFI such as the World Bank.
