World bank and imf

Most people have only the vaguest idea of what these institutions do, and very few people indeed could, if pressed on the point, say why and how they differ.

World bank and imf

Most people have only the vaguest idea of what these institutions do, and very few people indeed could, if pressed on the point, say why and how they differ.

International Monetary Fund - Wikipedia

Even John Maynard Keynes, a founding father of the two institutions and considered by many the most brilliant economist of the twentieth century, admitted at the inaugural meeting of the International Monetary Fund that he was confused by the names: Confusion has reigned ever since.

That there are two pillars rather than one is no accident. The international community was consciously trying to establish a division of labor in setting up the two agencies. Those who deal professionally with the IMF and Bank find them categorically distinct.

World bank and imf

To the rest of the world, the niceties of the division of labor are even more mysterious than are the activities of the two institutions. Similarities between them do little to resolve the confusion. Superficially the Bank and IMF exhibit many common characteristics. Both are in a sense owned and directed by the governments of member nations.

In fact, virtually every country on earth is a member of both institutions. Both institutions concern themselves with economic issues and concentrate their efforts on broadening and strengthening the economies of their member nations. Staff members of both the Bank and IMF often appear at international conferences, speaking the same recondite language of the economics and development professions, or are reported in the media to be negotiating involved and somewhat mystifying programs of economic adjustment with ministers of finance or other government officials.

The two institutions hold joint annual meetings, which the news media cover extensively. Both have headquarters in Washington, D. For many years both occupied the same building and even now, though located on opposite sides of a street very near the White House, they share a common library and other facilities, regularly exchange economic data, sometimes present joint seminars, daily hold informal meetings, and occasionally send out joint missions to member countries.

Despite these and other similarities, however, the Bank and the IMF remain distinct. The fundamental difference is this: Each has a different purpose, a distinct structure, receives its funding from different sources, assists different categories of members, and strives to achieve distinct goals through methods peculiar to itself.

Purposes At Bretton Woods the international community assigned to the World Bank the aims implied in its formal name, the International Bank for Reconstruction and Development IBRDgiving it primary responsibility for financing economic development.

The World Bank has one central purpose: The international community assigned to the IMF a different purpose. In establishing the IMF, the world community was reacting to the unresolved financial problems instrumental in initiating and protracting the Great Depression of the s: Set up as a voluntary and cooperative institution, the IMF attracts to its membership nations that are prepared, in a spirit of enlightened self-interest, to relinquish some measure of national sovereignty by abjuring practices injurious to the economic well-being of their fellow member nations.

The International Monetary Fund

The code is simple: To help nations abide by the code of conduct, the IMF administers a pool of money from which members can borrow when they are in trouble. The IMF is not, however, primarily a lending institution as is the Bank.

Philosophically committed to the orderly and stable growth of the world economy, the IMF is an enemy of surprise.

The IMF is convinced that a fundamental condition for international prosperity is an orderly monetary system that will encourage trade, create jobs, expand economic activity, and raise living standards throughout the world.

By its constitution the IMF is required to oversee and maintain this system, no more and no less. Most of its staff members work at headquarters in Washington, D.

World bank and imf

Its professional staff members are for the most part economists and financial experts.The International Monetary Fund (IMF) and the World Bank are institutions in the United Nations system. They share the same goal of raising living standards in their member countries.

The World Bank

Their approaches to this goal are complementary, with the IMF focusing on macroeconomic issues and the World Bank. With over 7, staff members, the World Bank Group is about three times as large as the IMF, and maintains about 40 offices throughout the world, although 95 percent of its staff work at its Washington, D.C., headquarters.

The International Monetary Fund The IMF works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

With over 7, staff members, the World Bank Group is about three times as large as the IMF, and maintains about 40 offices throughout the world, although 95 percent of its staff work at its Washington, D.C., headquarters.

World Bank is about growth. IMF is about stability. World Bank is for development projects in the developing world. IMF is about balancing the international financial system in both rich and poor countries [Greece is a recent recipient]. The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of " countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.".

World Bank & IMF Libraries