WORLD BANK &

INTERNATIONAL
MONETARY FUND

Introduction
In 1944, as the 2nd World War neared its end, a
conference was convened by the victorious countries in
Bretton Wood, in the United States. It was here that the
World Bank and the International Monetary fund were
born- in the hope that they would provide the foundation
of a peaceful and prosperous future for the world.
69 years later, these two multi-lateral institutions also
known as Bretton Woods Institutions (BWIs) occupy a
dominant position in the global political economy, but they
are the target of powerful attack- both in the streets and in
media. And in the course of these 69 years, they have
been joined by a whole range of other multilateral
institutions. These institutions also play an important role
in elimination of world poverty.

World Bank (WB)

Formation:- 27 December, 1945.

President:- Mr. Jim Yong Kim

Headquarter:-Washington D.C, United States.
No. Of. Member Countries:- 188 member countries
Currencies mainly used:- $, Pound, Yen, Euro.
Languages used:- English, French, Spanish.
The World Bank group is a partner in opening markets

and strengthening economies. Its goal is to improve the

quality of life and expand prosperity for people
everywhere, especially the worlds poorest.

The World Bank group of institutions are :

The International Bank For Reconstruction and Development

(IBRD) founded in 1944 in the single developing countries and a

major catalyst of similar financing from other sources.
The International Development Association (IDA) founded in 1960,
assists the poorest countries by providing interest free credits with 35
to 40 years maturities.
The International Finance Corporation (IFC) supports private
enterprise in the developing countries by providing interest free
credits with 35 to 45 years maturities.
The Multilateral Investment Guarantee Agency (MIGA) offers
investors insurance against non-commercial risk and helps
developing country governments to attract foreign investment.
The International Centre for the Settlement of International
Disputes (ICSID) encourages the flow of foreign investment to
developing countries through arbitration and conciliation facilities.

Functions & Objectives

Granting reconstruction loans to war devastated

countries.
Granting developmental loans to underdeveloped
countries.
Providing loans to governments for agriculture, irrigation,
power, transport, water supply, educations, health, etc.
Providing loans to private concerns for specified projects.
Promoting foreign investment by guaranteeing loans
provided by other organizations.
Providing technical, economic and monetary advice to
member countries for specific projects
Encouraging industrial development of underdeveloped
countries by promoting economic reforms.

International Monetary Fund

Formation:- 27 December, 1945.
Managing Director:- Christine Legarde
Headquarter:-Washington D.C, United States.
No. Of. Member Countries:- 188 member countries
Currencies mainly used:- $, Pound, Yen, Euro.

Languages used:- English, French, Spanish, Russian, Arabic,

Chinese.
(IMF) is an international organization that provides financial

assistance and advice to member countries. The functions of

the organization has become an enduring institution integral to
the creation of financial markets worldwide and to the growth of
developing countries.

Functions:
Providing short terms credit to member countries for

meeting temporary difficulties due to adverse balance of

payments.
Reconciling conflicting claims of member countries.
Providing a reservoir of currencies of member-countries
and enabling members to borrow on another's currency.
Promoting orderly adjustment of exchange rates.
Advising member countries on economic, monetary and
technical matters.

Differences between WB & IMF

S.No.

World Bank

International Monetary Fund

1.

Seeks to promote economic development

and structural reforms in developing
countries.

Oversee the international monetary systems and

promotes international monetary cooperation.

2.

Assists developing countries by providing

long-term financing of development projects
and programmes.

Promote exchange stability and orderly exchange

relations among its members.

3.

Provides special finance assistance to the

poorest developing countries through the
IDA.

Assists members in temporary BOP difficulties by

providing them with the opportunity to correct
maladjustments in their BOP.

4.

Stimulates private enterprise in developing

countries through its affiliate, the
International Finance Corporation.

Supplements the reserves of its members by

allocating SDBs if there is a long-term global
need.

5.

Acquires most of its financial resources by

borrowing on the international bond market.

Draw its financial resources principally from the

quota subscriptions of its members.