e remaining portion is shared by three-quarters of the world's population,living in developing countries (Speth, 1995, p. 14).
Income inequality came under scrutiny during preparatory meetings for the World Summit for Social Development (Social Summit). Observers noted that, although living standards in developing countries have improved over the past two decades, disparities within countries are likely to rise, with the largest gaps occurring in South Asia, Latin America, and the Caribbean. Given the great and persistent inequalities within (and between) countries, the Summit's participants pledged to create a framework for action that would promote the equitable distribution of income. This goal is allegedly to be reached through an enabling environment for social development. The Summit's commitment to reduce income inequality raises an obvious and critical question regarding the efforts of creditor countries: Can the IMF and the World Bank contribute effectively to the enabling environment envisioned at the Social Summit, especially as it relates to income distribution within countries ("intracountry income distribution")?
To avoid economic disruption after World War II, Great Britain and the United States convened a conference on international monetary cooperation at Bretton Woods, New Hampshire, in 1944. From these deliberations at Bretton Woods, the "World Bank" (formally the International Bank For Reconstruction and Development) and the International Monetary Fund (IMF) emerged.
The World Bank was to mobilize economic resources for long-term socio-economic development. The IMF established a multilateral system of nations' payments and reserves, of managing fluctuations in currency exchange rates, and of cooperation among states on monetary matters. IMF's international financial reserves are supplemented by Special Drawing Rights as of 1967 (valued with reference to a "basket" of several national currencies).
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