Amid the 1930s, the Great Depression brought about falling flat economies.

The fall of the best

quality level drove nations to raise exchange boundaries, degrade their monetary standards to

contend with each other for trade advertises and reduce use of remote trade by their nationals.

Every one of these components prompted declining world exchange, high joblessness, and diving

expectations for everyday comforts in numerous nations. In 1944, the Bretton Woods Agreement

set up another universal financial framework. The formation of the International Monetary Fund

(IMF) and the World Bank were two of its most persevering inheritances.

IMF

IMF was developed with a main goal to cater the monetary challenges faced by the developing

countries and maintain a balanced financial system.The role of IMF for developing countries is

quite controversial from its inception.According to hand on reports and statistical data, the

results of their Fund programmes on macro economic policies are quite over rated.It is not able

to attain its secondary goals of development and inflation. IMF is criticised for following actions:

1. Limitations for loans

2. Free capital market criticisms

3. Lack of clear loans and involvement

4. Backing military rule

5. Trade off rate reforms

WORLD BANK

World bank like IMF tries to address the economic crisis in developing countries.It finances the
poorest developing countries whose per capita GNP is less than $865 a year through
International development Association.World bank provides two types of loans i.e. Investment
loans and Development policy loans.According to reports and statistics, the neoliberal approach
of World Bank is quite objectionable because of following policies:

1. Low profit devised system on capital profits

2. Publics Services are to be privatized

3. Focus on exports rather than imports

4. High rate of interest on loans

It may be noted that World Bank has granted loans to several countries and their success is based

on it but still a lot of financial projects are due.The bank has also played important roles in the

political and economic matters e.g. the Indus water treaty between India and Pakistan.