CONTEMPORARY WORLD

NAME: RHEA BALA-IS SECTION: BSN 1-A DATE: JULY 27, 2022

ANSWERS:

1. An International Monetary Fund (IMF) is an international financial institution, works to

achieve sustainable growth and prosperity for all its 190 member countries. It does so by
supporting economic policies that promote financial stability and monetary cooperation, which
are essential to increase productivity, job creation, and economic well-being. The IMF is
governed by and accountable to its member countries. The functions of International Monetary
Fund are: promote international monetary cooperation, facilitate international trade, foster
sustainable economic growth, make resources available to members experiencing balance of
payment difficulties, prevent and assist recovery from international financial crises.

A. IMF is different from the world bank by the International Monetary Fund serves to stabilize
the international monetary system and acts as monitor of the world’s currencies. The IMF
keeps track keeps track of the economy globally and in member countries, with balance of
payment difficulties and gives practical help to members, while the World Bank Group works
with developing countries to reduce poverty and increase shared prosperity, they provide
financing, policy advice, and technical assistance to governments and also focuses on
strengthening the private sector in developing countries.

B. IMF funds come from the money that countries pay as their capital subscription (quotas)
when they become members. Each member of IMF is assigned a quota, based broadly on its
relative position in the world economy. Countries can then barrow from this pool when they fall
into financial difficulty.

2. The five institutions under the world bank are:

 IBDR (INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT- Lends to

governments middle-income and credithworthy low-income countries .
 IDA (THE INTERNATIONAL DEVELOPMENT ASSOCIATION)- Provides interest-free loans
called credits and grants to governments of the poorest countries.
 IFC (THE INTERNATIONAL FINANCE CORPORATION)- Is the largest global development
institution focused exclusively on the private sectors. They help developing countries
achieve sustainable growth by financing investments, mobilizing capital in International
Financial markets, and provide advisory services to businesses and governments.
 MIGA (THE MULTILATERAL INVESTMENT GUARANTEE AGENCY)- Promote foreign direct
investment into developing countries to support economic growth, reduce poverty, and
improve people’s lives.
  ICSID (THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES)-
Provides international facilities for conciliation and arbitration of investment disputes.

3. When the Covid-19 pandemic has reached the Philippines the institutions which the
Philippine loaned from is the World bank, the executive director approved a million loan to help
the Philippines mitigate the impact of COVID-19 pandemic on poor and vulnerable households,
and to provide financial relief to small and medium enterprises.

a. It is because

b. I think if the Philippines or any country is not able to pay off its debt from these international
lending/financial institutions will be going to face a debt crisis