Basic Information and an Introduction to World Bank and International Monetary Fund (IMF)

1. World Bank and International
Monetary Fund (IMF)
PolSci 235 – International Regional Organizations

2. World Bank
The world bank is an
internationally supported
bank that provides
financial and technical
assistance to developing
countries for
development programs
(e.g. bridges, roads,
schools)with the stated
goal of reducing poverty.

3. INTRODUCTION
• President :- Robert B. Zoellick
• Membership :- 185 countries
• Affiliates :- IFC, MIGA, ICSID
• Headquarters :- Washington, DC and more than 100
country Staff
:- about 10000 all over the world
• Established :- July 1,1944
INTRODUCTION

4. ROBERT B.ZOOLICK

6. World Bank Structure
• The organizational structure of the Bank is headed by a board of governor,
composed of one governor from each member state, meeting once a year.
Below the board of governors is the board of executive directors, who meet
in permanent session at the Bank’s headquarters.
• The 24 directors are appointed by their governments but are considered
employees of, and are paid salaries by the bank.
• Voting in the bank is weighted. Meaning, the voting strength of each
member state is proportionate to its financial contributions.
• The U.S. still retains its power of veto and the share and votes of the Big
Five remain at nearly 40 percent. The Big Five are the United States,
japan, Germany, France, and UK.

7. NEED OF WORLD
BANK
BUILD
CAPACITY
CREATE
INFRASTRUCTURE
DEVELOP
FINANCIAL
SYSTEM
COMBAT
CORRUPTION

8. OPERATIONS
• Fund generation
• Loans
• Grants
• Analytic & Advisory Services
• Capacity building

9. AREA OF OPERATION
• Agriculture and Rural
Development
• Economic policy
• Education
• Energy
• Environment
• Financial sector
• Health, nutrition and
population industry
• Information, computing and
telecommunication
• Law and justice
• Private sector
• Social protection
• Trade
• Water resources
• Water supply and sanitation

10. CRITICISM
• It was started to reduce poverty
but it support United States’
business interests.
• It is deeply implicated in
contemporary modes of donor
and NGO driven imperialism.
• The President of the Bank is
always a citizen of the United
States.
• Lack transparency to external
publics.
• It is an instrument for the
promotion of U.S. or Western
interests.
• The decision-making structure
is undemocratic.
• It has consistently pushed a
“neo-liberal” agenda.

12. 5 PRIORITIES OF WORLD BANK
• World bank provides the largest external funds for education.
• It is a big support in reducing poverty.
• It provides fund for biodiversity projects.
• it helps to bring clean water, electricity, and transport to poor people.
• It helps in controlling emerging conflicts.

13. International Monetary Fund (IMF)
• “It is an organization of 186 countries
,working to foster global monetary
cooperation , secure financial stability
,facilitate international trade ,promote
high employment and sustainable
economic growth and reduce poverty” .
• The IMF is the most detailed attempt to
organize the conduct of international
monetary affairs.

14. The International Monetary
Fund was created in July
1944, originally with 45
members, with a goal to
stabilize exchange rates and
assist the reconstruction of
the world's international
payment system. Countries
contributed to a pool which
could be borrowed from, on a
temporary basis, by countries
with payment imbalances.
(Condon, 2007)
Headquarters in
Washington D.C.

15. Who runs the IMF?
Member Countries
IMF Managing Directors
Executive Board
Board of Governors
First Deputy Managing Dir.
Deputy Managing
Dir.
Deputy Managing
Dir.

16. IMF Director – Christine Lagarde

17. MEMBERSHIP
There are two types of members:
1) ORIGINAL MEMBERS: All those countries whose
representatives took part in BRETTONWOODS CONFERENCE
and who agreed to be the members of the fund prior to 31st
December,1945.
2) ORDINARY MEMBERS: All those who became its members
subsequently.
*BANK has the authority to suspend any member and similarly every member is
free to resign.

18. RESOURCES
OF THE
FUND
• QUOTAS AND THEIR FIXATION: The
fund has general account based on quotas
allocated to its members .when a country
joins the fund, it is assigned a quota that
governs the size of its subscription, its
voting power and its drawing rights .
• FUND BORROWING: It was in force from
October 1962 to December 1998 .At that
time its total borrowing was SDR 17
billion .

19. OBJECTIVES
OF THE IMF
• International Monetary Co Operation
• To Facilitate Expansion And Balanced
Growth Of International Trade
• To Promote Exchange Stability
• Generating Higher Employment And
Income
• Abolition Of Exchange Restriction
• Aid To Members During Emergency
• To Shorten The Duration And Lessen The
Degree Of Disequilibrium In The
International Balance Of Payments Of
Members.

20. Criticism
 Many observers comment on the fact that the IMF has a ”one size
fits all” mentality, that whatever the situation the IMF prescribes
basically the same set of policies.
 IMF does not adequately monitor the impact of its decisions on the
poor.
 Some of U.S. critics say, IMF is an incredibly wasteful organization
that takes valuable funds and pours it down the drain of developing
economies whose leaders become fabulously rich off the money
without any intention of ever helping out anyone.
 the IMF has no effective authority over the domestic economic
policies of its members.

22. CONCLUSION
The IMF’s primary purpose is to safeguard the stability of the international monetary
system—the system of exchange rates and international payments that enables countries
(and their citizens) to buy goods and services from each other. This is essential for
achieving sustainable economic growth and raising living standards.
 providing advice to members on adopting policies that can help them prevent or
resolve a financial crisis, achieve macroeconomic stability, accelerate economic growth,
and alleviate poverty;
 making financing temporarily available to member countries to help them address
balance of payments problems—that is, when they find themselves short of foreign
exchange because their payments to other countries exceed their foreign exchange
earnings; and
 offering technical assistance and training to countries at their request, to help
them build the expertise and institutions they need to implement sound economic
policies.

23. Difference Between IMF & World Bank

24. Ryan Cloyd
Q. Villanueva
BA-Political Science 4