Section VIII: Dynamism in the World system
The core-peripheral perception of the capitalist world system conceptualized by Wallerstein can easily lead one to a conclusion that little hope exists for poorer countries that aspire to some degree of economic independence. There are, however, two shafts of light that bring hope to the situation of such countries. One of these shafts of light is the International Monetary Fund (IMF) funded by the developed economies of the world, while the second is the Revolving Loan Fund (RLF) concept funded by the United Nations. The combined effects of the functioning of these two initiatives enhances the dynamism of the capitalist world system through empowerment of states, local capital, and community-based movements.
While the IMF provides capital to encourage development in Third World countries, critics contend that because such capital is provided by and controlled by the core economies, the only development that occurs is that which is directly beneficial to the core economies. The United States has been "deeply involved in the affairs of most countries of the underdeveloped world" since the end on the Second World War, ostensibly to "stop the spread of Communism," but also to promote the economic interests of the United States (Chirot, 1977, p. 2).
Since 1963, several special financing facilities have been established by the IMF to supplement stand-by authority loans for the poorer countries. These special facilities are as follows:
1. The compensatory financing facility established in 1963 provides temporary loans to cover unexpected and temporary shortfalls in export receipts. In 1981, a separate financing facility, but one which is fully integrated with the compensatory financing facility, was established to provide assistance to member nations experiencing temporary problems with payments for cereal imports. These financing facilities of the IMF strengthen the role of the ...