The International Monetary Fund

(MIF) and the World Bank (WB)

Arlyn A. Espiritu
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Introduction
At the end of World War II, much of Europe was in ruins and the United States
and the international community wanted to create institutions that would foster global
growth and stability. It was agreed that political stability, peace, and the possibility of
post-war reconstruction and development efforts were connected to the functioning of
the world economy. The International Monetary Fund (IMF) and the World Bank were
created at a UN conference in Bretton Woods, New Hampshire, in July 1944.
The IMF was originally designed to promote international monetary
cooperation, exchange stability, and orderly exchange arrangements. The World Bank
was created to aid European countries that had been devastated in World War II and,
over the years, it has made loans to support reconstruction in various developing
countries. Both organizations are now part of the United Nations system and have
their headquarters in Washington, D.C., and work closely with each other.
The Bretton Woods institutions, as they are known, have provided the
framework for much of international economic diplomacy since the end of the war.
However, these institutions have also been the subject of criticism and required
reforms in light of drastic changes in the global economy that have occurred since
1945. Also, the IMF's and World Bank’s efforts to maintain international exchange
stability through the enforcement of exchange rate pegs has been condemned as
counterproductive and unnecessary intervention into national economic policies.
Venice Angel Cajeda,
Ma. Luisa O. Arcega
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Objective
IMF and the World Bank were designed to complement each other. The IMF's
main goal was help countries which were in trouble at that time and who could not
obtain money by any means. Perhaps, their economy collapsed or their currency
was threatened. IMFs in this case, served as a lender or last resort for countries
which needed financial assistance.
The World Bank, in comparison, had a more long-term approach. Its main
goals revolved around the eradication of poverty and it funded specific projects that
helped them reach their goals, especially in poor countries.
Airha Jean E. Sapon
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Problems Encountered by International Monetary Fund (IMF) and World Bank

(WB)
The recent global economic crisis, the rise in economic uncertainty worldwide, the
emergence of new economic superpowers from the East, and a host of other factors have
contributed to the substantial challenges that the World Bank and IMF are facing at different
levels.
Governance and important policy issues is one of the main challenges facing both
institutions, it has been argued that international organizations like the IMF and world bank
"face the problem of 'multiple principals' to a much larger extent than public and private
enterprises." They are governed by numerous governments, many of which disagree about
the course of action for the organization (Martinez-Diaz and Lamdany, 2009, p. 2.). In other
words, there are often disagreements amongst governments in control of both institution in
terms of the aims and objectives to be achieved by the organization and the manner in which
they need to be achieved and this halts the performance of the organization to a great
extent.
Furthermore, the industrialized nations' dominant position in the world economy, with
a majority of the votes, and the need for qualified majorities for all significant decisions
illustrates how small economies are excluded from the decision-making process. The issue
of whether the IMF's and world banks governance adheres to the same norms of
accountability, transparency, and legitimacy that it imposes on its member nations were
most likely due to practices such as lending to corrupt governments or even dictators, and
imposing ineffective austerity measures. In addition, the wide approach in addressing the 8
millennium goals and the 17 SDG’s and Social Instability placed both MIF and World Bank
in a difficult position of having to accomplish its duties effectively, at the same time when
acknowledging and addressing the concerns of all of member countries of the organization.
Angelica Dela Cruz,
Hazel Baltazar
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Contributions of IMF and world bank To Globalization

The IMF promotes global macroeconomic and financial stability and provides
policy advice and capacity development support to help countries build and maintain
strong economies and IMF has three critical missions to furthering international
monetary, cooperation, encouraging the expansion of trade and economic growth,
and discouraging policies that would harm prosperity.
The World Bank promotes long-term economic development and poverty
reduction by providing technical and financial support to help countries implement
reforms or projects, such as building schools, providing water and electricity, fighting
disease, and protecting the environment. World Bank assistance is generally long-
term and is funded by member country contributions and by issuing bonds. World
Bank staff are often specialists on specific issues, such as climate, or sectors, such
as education