SESSION- 19 & 20

International Monetary Fund (IMF) & World Bank (IBRD)

A. International Monetary Fund (IMF)
Objectives of IMF Functions of IMF

B. World Bank
Objectives of World Bank Functions of World Bank

A. INTERNATIONAL MONETARY FUND (IMF)

OBJECTIVES OF IMF
To achieve International monetary co-operation through consultation & collaboration To stabilize Foreign exchange rates & facilitate international trade between member countries To reduce short- term disequilibrium in the Balance of Payments (BOPs) of member countries. To invest capital in less developed countries for development of economic resources.

FUNCTIONS OF IMF
Provision of advise to member countries on economic
& monetary matters by
reviewing & monitoring national economic policies. Suggesting suitable policy changes for economic stability.

Provision of financial assistance to member countries for

overcoming disequilibrium in the BOPs & for structural reforms. Poverty reduction in low income countries

Provision of technical assistance & training for

Designing & implementing fiscal & monetary policy Drafting & reviewing economic & financial legislations Institution & capacity building in Central Banks & government departments Imparting training to officials of member countries by offering courses at its headquarters & at other regional locations.

WORLD BANK GROUP

IBRD International Bank Reconstruction & Development. IFC International Finance Corporation. IDA International Development Association. ICSID International Centre For Settlement Of Industrial Disputes. MIGA Multi-lateral Investment Guarantee Agency.

B. World Bank

(World Bank Group- IBRD, IDA, IFC, ICSID & MIGA)

OBJECTIVES OF WORLD BANK
To assist in reconstruction & development of the economies of the member countries through capital formation. To promote Private foreign investments through the Banks guarantees. To eliminate long-term disequilibrium in the balance of payments through balanced growth of international trade. To provide direct loans to the less developed countries ( LDCs) for development of productive economic resources.

FUNCTIONS OF WORLD BANK

Provision of loans & grants to the poor countries for
Relieving their external debt burden Building schools & health centers Improving water supply, electricity supply & sanitation facility Fighting diseases / Supporting vaccination & immunization / Combating AIDS Protecting the environment & preventing environmental hazards

Provision of analytical & advisory services for solving developmental problems through specialists to tackle economic,
financial & environmental issues like Bottlenecks in infrastructural development, Problems in operations in the banking system & financial markets, Difficulties in implementation of planned development programmes & poverty alleviation programmes through public expenditure review. Tackling environmental problems to achieving sustainable economic development Difficulties in promoting international trade

Provision of assistance for capacity building by

Increasing productivity & efficiency of human resources by imparting training & skills. Improving governmental performance & enable effective delivery of services through capacity building in central banks, state treasuries, statistical departments, tax departments etc. Improve standard of living of people living below poverty line by sustaining Poverty Alleviation Programmes (PAPs) in the member countries. Increasing productivity in the agricultural, industrial & service sector through implementation of viable projects in the member countries. Improving environmental conditions to help in attaining sustainable development in the member countries.