The World Bank and the International Monetary Fund, Interchangeable But Different

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The World Bank and the International Monetary Fund are two organizations that are used interchangeably, but are function very differently from one another. Both the World Bank and the International Monetary Fund were created during the post-World War II era to help stabilize the international economy. The IMF focuses mainly on international affairs and finance of the whole world, where the World Bank directs its attention toward developing countries. The United States and The People’s Republic of China are two of major members of both the IMF and the World Bank, which contribute their efforts on expanding and solidifying the economies of the other member nations. The World Bank is best described as a multilateral organization, meaning …show more content…
The United States currently holds the largest stock amount, 18%, with the Secretary of Treasury acting as the director or governor representing the United States. Each stockholder or member nation must provide a certain amount of capital every number of years to keep the World Bank operating and expanding. The Secretary of Treasury must turn to Congress every couple of years to ask what an appropriate amount of funds is that can be given to the World Bank on behalf of the United States. The International Monetary Fund was created to stabilize exchange rates, supervise reconstruction of the world’s international payment system and uphold the international trade policies with a main goal of financial stability. One of the IMF’s main goals is to prevent local economic problems from turning into global ones by lending money and advice in exchange for changes in certain policies being implemented in an attempt to stop or prevent a global economic recession. The IMF made up of 186 countries working together to promote high employment, reduce poverty and create sustainable economic growth. The IMF’s resources mainly come from the money that countries pay as their capital or membership when they become members of the organization. The IMF keeps track of its future ability to lend by observing its one-year forward commitment capacity, which gives an indication of resources available for lending. One of the most

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