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Imf and World Bank
Imf and World Bank
FUND
&
- REEDHIMA AGGARWAL &
SHRADHA SINGH
WORLD
BANK
ROADMAP
INTERNATIONAL
INTERNATIONALMONETARY
MONETARYFUND
FUND
PURPOSE:
Promote international monetary cooperation
Facilitate international trade
Foster sustainable economic growth
Make resources available to members experiencing
balance of payments difficulties.
ROLES OF IMF
OBJECTIVES OF IMF
To provide the global public good financial
stability.
Facilitate the growth of international trade, thus
promoting job creation, economic growth, and
poverty reduction.
Promote exchange rate stability and an open
system of international payments.
Lend countries foreign exchange when needed,
on a temporary basis and under adequate
safeguards, to help them address balance of
payments problems.
IMF FUNCTIONS
The IMFs main goal is o ensure the stability of the international monetary and
financial system. It helps resolve crises and works with its member
countries to promote growth and alleviate poverty.
FUNCTION OF IMFs
FINANCES
Quotas:
The IMFs resources come mainly from the money that countries pay as
their capital subscription when they become members. Quota broadly
reflect the size of each members economy: the larger a countrys economy
in terms of output and the larger and more variable its trade, the larger its
quota tends to be. They also help determine how much countries can
borrow from the IMF and their share in allocations of special drawing rights
or SDRs .
Gold:
The IMF holds a relatively large amount of gold among its assets, for
reasons of financial soundness, also to meet unforeseen contingencies.
The IMF holds 103.4 million ounces( 3217 metric tons) of gold, worth
about $83 billion as of end-Aug 2009, making it the 3rd largest official holder
of global in the world.
GOVERNANCE STRUCTURE
Ministerial Committee:
The IMF Board of Governors is advised by 2 ministerial
committees, the International Monetary and Financial
Committee (IMFC) and the Development Committee.
The IMFC has 24 members, drawn from the pool of 186
governors.
WORLD BANK
The World Bank had much influence in shaping development
since the second half of the twentieth century. Immediately after
the (WWII), world leaders saw a need for international
cooperation in order to rebuild the devastated countries in
Europe. It consists of five closely associated institutions,
including the International Bank for Reconstruction and
Development (IBRD) and the International Development
Association (IDA).
The World Bank is one of the worlds largest sources of
development assistance. There are currently 188 member
countries. Voting power is linked to members shares, which in
turn are based on each country's relative economic strength.
Multilateral Investment
International
Bank forfor
Finance
Center
Corporation
Reconstruction
Guarantee
the Settlement
(IFC)
Agency
and
of Investment
(MIGA) Disputes (ICSID) Development
CONCLUSION
The future of both Bretton Woods institutions remains uncertain. Both the IMF and
World Bank escaped the efforts of the Republican U.S. Congress in the mid-1990s to
sharply curtail and even eliminate both organizations. These agencies have been less
successful in answering the charges from the left, as the IMF retains its demand for
structural adjustments and the World Bank have instituted some reforms, they have
been unable to appease the concerns of outraged environmentalists, labor unionists
and nationalists and advocates of indigenous peoples in the developing world.
Still, as this essay have suggested, these two organizations are really the misguided
target for the legitimate concerns people of all ideological stripes have about the rapid
pace of globalization in the past half century. It is likely this globalization would have
occurred whether or not there had been a Bretton Woods conference and it is all but
certain it will continue in the future regardless of the policies pursued by the IMF and
World Bank. While it is true that they have often been too driven by U.S. foreign policy
concerns, in the end the influence of both institution has been widely overstated. And
despite their mistakes during the past half century, they have rarely been given credit
for many of the little things they do well. For example, both institutions perform
economic surveillance over most of the worlds economy, a valuable task that no other
international or private organization could perform with such skill. Both agencies also
serve as a store of expert knowledge and wisdom for countries throughout the world
that lack trained specialists. While neither the IMF nor the World Bank has met the lofty
goals of their founders or wielded the nefarious influence charged by their critics, they
have and should continue to play a small but important role in promoting prosperity
and economic stability worldwide.
References
http://www.preservearticles.com/201109221390
9/the-world-bank-has-made-a-significant-cont
ribution-to-indias-planned-economic-developm
ent.html
http://elibrary.worldbank.org/doi/pdf/10.1596/
1813-9450-5517
http://articles.timesofindia.indiatimes.com/key
word/world-bank
http://www.cddc.vt.edu/knownet/lse-worldbank.
pdf
http://www.worldbank.org/
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