The International Monetary Fund And World Bank Group

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The International Monetary Fund and World Bank Group The International Monetary Fund (IMF) and the World Bank have had enormous impact upon the world’s economies since their inception, after World War II. Although each of these organizations has a similar history, their role, objectives and funding are unique. These Washington DC-based organizations have drawn more than their share fair share of criticism as well as praise. Modern nations require thoroughly understand of these organizations. The IMF’s beginnings derived from two tragedies. In the latter days of World War II at the Bretton Woods conference took place in New Hampshire in 1944. Between the great depression and the economic devastation of World War II the confidence in…show more content…
They achieve this through their three core competencies, surveillance, subject matter expert support, and lending. The IMF’s objectives certainly benefit their member nations. The IMF has five unique objectives. The objectives are to promote international monetary cooperation, to facilitate the expansion and balanced growth of international trade, promote exchange stability, assist in the establishment of a multilateral system of payments, and make resources available to members experiencing balance of payment difficulties. Adequate safeguards for principal must always exist to maintain the health and feasibility of the IMF. The IMF primarily focuses on short-term financial problems. Of course, the IMF has an obligation to their member nations whose funding makes their work possible. When a nation chooses to join the International Monetary Fund, the organization assigns a quota to the nation. The International Monetary Fund uses a calculation between the global economy and the nation’s economy. The quota is determined by that computation. This quota is also used to determine how much IMF funding can be return to the nation in its time of need. When the nation enters the IMF 25% of the quota must be paid in US dollars, euros, yen, pound sterling. The other three quarters can be paid in the nation’s own currency. This was not always the case, originally nations had to pay the 25% in gold. This made the IMF one of the world’s
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