The International Monetary Fund (IMF) and the World Bank

IMF and the World Bank were founded after the World War II. Their establishment was
mainly because of peace advocacy after the war. These institutions aimed to help the
economic stability of the world. IMF and the World Bank were designed to complement
each other.
International Monetary Fund (IMF), in this case, served as a lender or a last resort for
countries which needed financial assistance. The IMF is a global organization that
works to achieve sustainable growth and prosperity for all of 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 IMF is governed by and accountable to 190 countries that make up its near-
global membership.
 The IMF was founded by 44 member countries that sought to build a framework
for economic cooperation.
 The IMF was established in 1944 in the aftermath of the Great Depression of the
1930s.
 The IMF is able to lend about $1 trillion to its member countries.
What is the role of IMF?
 Policy Advice
 Financial Assistance
 Capacity Development
Main Focus of IMF:
1. Trade
2. Fiscal Policy
3. Sovereign Debt
The World Bank group is one of the world’s largest sources of funding and knowledge
for developing countries. Its five institutions share a commitment to reducing poverty,
increasing shared prosperity, and promoting sustainable development.
1. The International Bank for Reconstruction and Development (IBRD)
2. The International Development Association (IDA)
3. The International Finance Corporation (IFC)
4. The Multilateral Investment Guarantee Agency (MIGA)
5. The International Centre for Settlement of Investment Disputes (ICSID)
What is the role of World Bank?
 The World Bank Group works in every major area of development. We provide a
wide array of financial products and technical assistance, and we help countries
share and apply innovative knowledge and solutions to the challenges they face.
 Investing in people through nutrition, health care, quality education, jobs and
skills.
 Priorities: People, Prosperity, and Peace.

” We face big challenges to help the world’s poorest people and ensure that everyone
sees benefits from economic growth. Data and research help us understand these
challenges and set priorities, share knowledge of what works, and measure progress.”
Vision- To create a world free of poverty on a livable planet.
Mission- To end extreme poverty and boost prosperity on a livable planet.
Unfortunately, the reputation of these institutions has been dwindling, mainly due to
practices such as lending the corrupt governments or even dictators and imposing
ineffective austerity measures to get their money back.
 References
Kenton, W. (2023, July 30). What is the International Monetary Fund (IMF)?
Investopedia. https://www.investopedia.com/terms/i/imf.asp
International Monetary Fund - IMF. (2023, April 19). IMF. https://www.imf.org/en/About
Who we are. (n.d.). World Bank. https://www.worldbank.org/en/who-we-are
What We do. (n.d.). World Bank. https://www.worldbank.org/en/what-we-do
https://cepr.org/voxeu/columns/understanding-global-role-us-economy