World Bank and International

Monetary Fund(IMF)

Presented to-
Dr. Madhu Vij

Presented By-
Aditya sai
Jyoti Shrivas
Sanandita Mukherjee
Arul Dass
Contents

1. Introduction
2. Differences
3. Roles
4. Structure
5. Conflicts
6. Other financial Institutions
Introduction

World Bank

World bank is an financial institution which gives out loans to low and middle income countries for
pursuing developmental projects.It is also a part of world bank group

It is a combination of two institutions IBRD(international bank for reconstruction and development)

and IDA(international development association)

IMF

Its goal is to boost prosperity and poverty in the poorest of poor countries

IMF is an international financial institution consisting of 190 member countries of UN dedicated to

facilitate money cooperation between nations and ensure economics stability

It plays an important role in management of balance of payment difficulties and helps in during
financial crisis
Difference

World Bank IMF

Functions Promotes Economic Oversees the international

development in poor country monetary system

Funding Source Resources from Resources from its member

International Bond market countries based on Quota.

Roles Assists developing countries Promotes exchange stability

through long term financing & orderly exchange relations
of development projects &
programmes.
Origin of WORLD BANK & IMF

Both IMF and World bank were born out of the Bretenwood agreement in 1944

They were created primarily to help post war countries to address their financial difficulties and with
goal of reconstructing Global financial system

World banks first loans were to war torn countries of western Europe and after these countries
developed world bank shifted it focus towards third world countries and aids in their developments

IMF was formed to oversee the international monetary system ,exchange rates and international
payments to enable countries and their citizens to buy goods and services from each other
STRUCTURE Of WORLD BANK
Advisory
Executive
Board of
President
governors
board
council

st
aff
STRUCTURE Of IMF
Managing
Executive
Board of
board
director
governors

IM
F
st
aff
 Roles of
WORLD BANK
● Provides financial assistance and
expertise to poor countries to combat
extreme poverty,increase economic
growth and achieve a better standard of
living
● promotes capital investment among
member nations by providing a guarantee
for loans and capital investment
● Through its projects it tries to imbibe a
culture of socio economic development
with primary focus on sustainable
development.
IMF
● IMF is to ensure stability in the international
financial system. It
● It oversees international monetary system and
monitors the financial and economic policies of
its member states
● IMf provides loans to member countries
experiencing balance of payment problems.It
helps in rebuilding their international reserves ,
stabilise their currencies and help in restoring
economic growth at the same time correcting
underlying problems
Criticisms

IMf has widely criticised for the following reasons

1) Condition for loans

2) Exchange Rate reforms Failure (ex Kenya)
3) Lack of transparency and involvement
4) Supporting military dictatorships

World Bank also had it own fair share of critics, some of the reasons

5) Administrative Incompetence
6) Rewarding or Supporting Inefficient Countries
7) Focussing on large projects rather than local initiatives
8) G7 dominance
 Other
FINANCIAL
INSTITUTIONS
 International Finance World Trade
Corporation(IFC) Organisation(WTO)

● ●
Established in 1956
● ●
They are working to foster global
monetary cooperation
● ●
Purpose- Promote open &
competitive markets in developing
● Deals in- Agriculture, textiles,
countries, support private sector
partners, generate productive jobs &
deliver basic services
● ●
Business- Investment services,
Advisory services, Asset management
company
Established in 1995
Purpose- Regulate & liberalize
World trade
Agreements negotiated &
signed by the trading nations
clothing, banking, telecom, Govt
purchases, and many more.
The Goal is to help producers of
goods & services & enable
exporters & importers conduct
their business.
 Bank of International
Settlements(BIS)
● Established in 1930
● Purpose - Monetary & financial
stability & facilitating interaction
between member nations
● Provides Banking services to Central
Bank & other financial institutions
only
● Goal is to regulate capital
adequacy(BCBS) & make reserve
requirements transparent
List of other Financial Institutions
● IBRD- International bank of
Reconstruction & Development
● IDA- International Development
Association
● MIGA- Multilateral investment
guarantee Agency
● IDB- International development Bank
● IIB- International Investment Bank
● ICSID- International centre for
settlement of Investment disputes
References

https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home

https://en.wikipedia.org/wiki/World_Bank_Group

https://www.economicshelp.org/blog/glossary/imf-criticism/

https://www.imf.org/external/pubs/ft/exrp/differ/differ.htm

https://www.imf.org/en/home

https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm

https://www.imf.org/external/pubs/ft/exrp/differ/differ.htm

https://www.wto.org/english/forums_e/forums_e.htma

https://en.wikipedia.org/wiki/Bank_for_International_Settlements
THANK YOU!!!