Different international financial institutions have been set up to track the wealth of a country. Some of these are IMF, World Bank and UN. What are IMF, World Bank and UN? what is the difference between IMF and World Bank?
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- The International Monetary Fund (IMF): IMF is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth. (http://imf.org/)
- The World Bank: provides financial and technical assistance to developing countries for development programs (e.g. bridges, roads, schools, etc.) with the stated goal of reducing poverty. (worldbank.org)
- The United Nations (UN) is an intergovernmental organization tasked to promote international co-operation, to create and maintain international order, promoting human rights, fostering social and economic development, protecting the environment, and providing humanitarian aid in cases of famine, natural disaster, and armed conflict.
The Video from One Minute Economics gives an overview of the IMF, World Bank and UN.
What is IMF or International Monetary Fund?
International Monetary Fund (IMF) is an organization working to foster global monetary cooperation, of 180+ countries formed with the objective of stabilizing international exchange rates and facilitating development. Created in 1945, the IMF is governed by and accountable to the 189 countries that are its members. The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.
- Secure financial stability,
- Facilitate international trade,
- Promote high employment and
- Sustainable economic growth,
- Reduce poverty around the world.
The IMF has played a part in shaping the global economy since the end of World War II.
Most resources for IMF loans are provided by member countries, primarily through their payment of quotas. Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy. The Special Drawing Rights (SDR) is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
This video provides a brief overview of the IMF’s financial operations, its policies, and lending arrangements.
Difference between IMF and World Bank
