N o ve m b e r, 2 0 0 9

Mehedi Hasan Md. Hefzur Rahman Associate Professor and Head Business Administration

Ø Salahuddin Yousuf 03 30 Ø Sandip Sarker 07 03 35 Ø ArifuzzamanKhan 03 44

# 07 # # 07

• The World Bank aids in the development and reconstruction of its members


• The International Monetary Fund (IMF) maintains international monetary cooperation among its members

Formation Membership President Headquarter

17 December, 1945 186 countries Robert B. Zoëlick Washington DC.

24 Vice-Presidents, 3 Senior Vice Presidents and 2 Executive Vice Presidents

• Mission: To help developing countries and their people reach the goals by working with WB’s partners to alleviate poverty.

Formation: July, 1944 Membership: 186 countries. ( Kosovo last) Headquarter: Washington DC.

MD : Dominique Strauss-Kahn. Staff: 2,478 from 143 countries

• After the Great Depression in the 1930s there was a need for an organization to create a system for exchange rate stability

– –

– Uncertainty of the value of paper money (no longer used the gold standard) – Countries began cheating other countries in trade

• Countries’ economies affected by WWII

– need for reconstruction in well-developed nations – need for development in the lesser developed nations

• 1940s proposals for monetary system by Harry Dexter White (U.S.) and John Keynes (UK)

– establish the value of each currency – eliminate restrictions and certain practices on trade – assistance for post-war reconstruction

• Bretton Woods Conference, New Hampshire, July 1944 with delegates of 44 nations
– final negotiations of the IMF and the World Bank took place

WORLD BANK

WORLD BANK

• Founded in 1944 at the Bretton Woods Conference

• World Bank’s central institution • 186 member countries

– to finance the reconstruction of countries affected by WWII – help with development of impoverished nations

• Established in 1960

• lends to countries with annual per capita incomes of about $800 or less • 161 members • Known as soft loan window
– It’s loans are knows as “credits”

– assist the poorest developing countries

• Works with the Government of Bangladesh to assist in attaining goals of reducing poverty and improving the lives of people. • Also works closely with other development partners (NGO civilsociety academia , , )  • For the current financial year FY09, World Bank has provided concessional lending above $1 billion.

• • •


All World Bank loans to Bangladesh are interest free IDA credits. Its current portfolio in the country includes 27 active projects. The World Bank has supported the Government’s rural development, education, social protection and health programs that helped the country in achieving the MDGs.  Basic infrastructure (electricity, support for power generation, the construction of the Padma Bridge)

CRITICISM

Ø The privatization aspects have also been criticized. Ø Moral Hazard. Ø Decline in Public Services. Ø Takes away political autonomy. Ø Exacerbates Economic Problems.


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