imf and world bank.pptx

7/26/2019 IMF AND WORLD BANK.pptx

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INTERNATIONAL MONETARYFUND

&WORLD BANK- REEDHIMA A

GGARWAL & SHRADHA SINGH


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ROADMAP


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INTERNATIONAL MONETARY FUND

The International Monetary Fund(IMF) is aninternational organization headquartered in

Washington, D.C., of 1 !ountries "or#ingto foster glo$al %onetary !oo&eration,se!ure finan!ial sta$ility, fa!ilitateinternational trade, &ro%ote high

e%&loy%ent and sustaina$le e!ono%i!gro"th and redu!e &o'erty around the"orld.


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HISTORY & PURPOSE OF IMF

For%ed in 1 at the *retton Woods Conferen!e, it!a%e into for%al e+isten!e in 1 "ith - %e%$er!ountries and the goal of re!onstru!ting theinternational &ay%ent syste%.

/0234

ro%ote international %onetary !oo&eration

Fa!ilitate international trade

Foster sustaina$le e!ono%i! gro"th Ma#e resour!es a'aila$le to %e%$ers e+&erien!ing

$alan!e of &ay%ents diffi!ulties.


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Tra!#s glo$al e!ono%i! trends and&erfor%an!e.

5lerts its %e%$er !ountries

ro'ides a foru% for &oli!y dialogue.

ro'ides &oli!y ad'i!e and finan!ing to%e%$ers.

ROLES OF IMF


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To &ro'ide the glo$al &u$li! good finan!ialsta$ility.

Fa!ilitate the gro"th of international trade, thus

&ro%oting 6o$ !reation, e!ono%i! gro"th, and&o'erty redu!tion. ro%ote e+!hange rate sta$ility and an o&en

syste% of international &ay%ents. 7end !ountries foreign e+!hange "hen needed,

on a te%&orary $asis and under adequatesafeguards, to hel& the% address $alan!e of

&ay%ents &ro$le%s.

OBJECTIVES OF IMF


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The IMF8s %ain goal is o ensure the sta$ility of the international %onetary andfinan!ial syste%. It hel&s resol'e !rises and "or#s "ith its %e%$er!ountries to &ro%ote gro"th and alle'iate &o'erty.

Economic & Financial Surveillance: The IMF &ro%otes e!ono%i! sta$ilityand glo$al gro"th $y en!ouraging !ountries to ado&t sound e!ono%i! andfinan!ial &oli!ies. To do this, it regularly %onitors glo$al, regional andnational e!ono%i! de'elo&%ents.

Technical Assistance and Training:IMF offers te!hni!al assistan!e andtraining to hel& %e%$er !ountries strengthen their !a&a!ity to design andi%&le%ent effe!ti'e &oli!ies. Te!hni!al assistan!e is offered in se'eralareas, in!luding fis!al &oli!y, %onetary and e+!hange rate &oli!ies, $an#ingand finan!ial syste% su&er'ision and regulation and statisti!s.

IMF Lending4 In the e'ent that %e%$er !ountries e+&erien!e diffi!ultiesfinan!ing their $alan!e of &ay%ents, the IMF is also a fund that !an $eta&&ed to fa!ilitate re!o'ery.

Research and Data:2u&&orting all three of three of these a!ti'ities is theIMF8s e!ono%i! and finan!ial resear!h and statisti!s

IMF FUNCTIONS


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3+ternal 0elation De&art%ent

FUNCTION OF IMFs


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Quotas:

The IMF8s resour!es !o%e %ainly fro% the %oney that !ountries &ay astheir !a&ital su$s!ri&tion "hen they $e!o%e %e%$ers. 9uota $roadlyrefle!t the size of ea!h %e%$er8s e!ono%y4 the larger a !ountry8s e!ono%yin ter%s of out&ut and the larger and %ore 'aria$le its trade, the larger its

quota tends to $e. They also hel& deter%ine ho" %u!h !ountries !an$orro" fro% the IMF and their share in allo!ations of s&e!ial dra"ing rightsor 2D0s .

Gold:

The IMF holds a relati'ely large a%ount of gold a%ong its assets, forreasons of finan!ial soundness, also to %eet unforeseen !ontingen!ies.

The IMF holds 1:;. %illion oun!es( ;-1< %etri! tons) of gold, "ortha$out =; $illion as of end>5ug -::, %a#ing it the ;rdlargest offi!ial holder

of glo$al in the "orld.

FIA!ES


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Ministerial !ommittee4The IMF *oard of ?o'ernors is ad'ised $y - %inisterial!o%%ittees, the International Monetary and Finan!ialCo%%ittee (IMFC) and the De'elo&%ent Co%%ittee.

The IMFC has - %e%$ers, dra"n fro% the &ool of 1@go'ernors.

The E"ecutive #oard:The IMF8s ->%e%$er 3+e!uti'e *oard ta#es !are of thedaily $usiness of the IMF. Together, these - $oard%e%$ers re&resent all 1@ !ountries.

GOVERNANCE STRUCTURE


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Board o Go!"r#ors is the highest decision-m!ing "od#o$ the IMF% It consists o$ one goe'no' nd one (te'ntegoe'no' $o' ech mem"e' co)nt'#% The goe'no' is

**ointed "# the mem"e' co)nt'# nd is )s)((# theministe' o$ +nnce o' the hed o$ the cent'( "n!%

,hi(e the o'd o$ .oe'no's hs de(egted most o$ its

*o/e's to the IMF0S E1ec)tie o'd2 it 'etins the 'ight to**'oe 3)ot inc'eses%

S$"%a' Dra(#) R)*+,SDR ((octions2 thedmittnce o$ ne/ mem"e's2 com*)(so'# /ithd'/( o$mem"e's nd mendments to the A'tic(es o$ Ag'eementnd #-L/s% It (so e(ects o' **oints e1ec)tie di'ecto's%

The o'd o$ .oe'no's o$ the IMF nd the ,o'(d n!.'o)* no'm((# meet once #e'


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The World *an# had %u!h influen!e in sha&ing de'elo&%entsin!e the se!ond half of the t"entieth !entury. I%%ediately afterthe (WWII), "orld leaders sa" a need for international!oo&eration in order to re$uild the de'astated !ountries in

3uro&e. It !onsists of fi'e !losely asso!iated institutions,in!luding the International *an# for 0e!onstru!tion andDe'elo&%ent (I*0D) and the International De'elo&%ent

5sso!iation (ID5).

The World *an# is one of the "orld8s largest sour!es ofde'elo&%ent assistan!e. There are !urrently 1 %e%$er!ountries. Aoting &o"er is lin#ed to %e%$er8s shares, "hi!h inturn are $ased on ea!h !ountryBs relati'e e!ono%i! strength.

WORLD BANK


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Histo'# "ehind the ,o'(d n!

The World *an# "as !reated at *retton Woods in 1 to lendto 3uro&ean !ountries to hel& the% re$uild after World War II. It"as the "orldBs first %ultilateral de'elo&%ent $an#, and "asfunded through the sale of World *onds. Its first loans "ere toFran!e and other 3uro&ean !ountries, $ut soon lent %oney toChile, Me+i!o and India to $uild &o"er &lants and rail"ays. *y1


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P)'*oses o$ the ,o'(d n!

?ranting re!onstru!tion loans to "ar de'astated!ountries. ro'iding loans to go'ern%ents for agri!ulture,

irrigation, &o"er, trans&ort, "ater su&&ly,

edu!ations, health et!. ro%oting foreign in'est%ent $y guaranteeing

loans &ro'ided $y other organizations.

3n!ouraging industrial de'elo&%ent ofunderde'elo&ed !ountries $y &ro%oting e!ono%i!refor%s.

ro'iding te!hni!al, e!ono%i! and %onetary

ad'i!e to %e%$er !ountries for s&e!ifi! &ro6e!ts.


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4 Di5e'ent O'gni6tions o$ ,o'(d n!

International *an# for 0e!onstru!tion and De'elo&%entInternational Finan!e Cor&oration (IFC)Multilateral In'est%ent ?uarantee 5gen!y (MI?5)International Center for the 2ettle%ent of In'est%ent Dis&utes (IC2ID)


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Inte'ntion( n! $o' Reconst')ctionnd Dee(o*ment

This is an institution "ithin the World *an# that ai%s toredu!e &o'erty in %iddle> in!o%e and !redit"orthy &oorer!ountries $y &ro%oting sustaina$le de'elo&%ent throughloans, guarantees, ris# %anage%ent &rodu!ts, and

analyti!al and ad'isory ser'i!es.

I*0D raises %ost of its funds on the "orldBs finan!ial%ar#ets. It has $e!o%e one of the %ost esta$lished

$orro"ers sin!e issuing its first $ond in 1< to finan!e there!onstru!tion of 3uro&e .

7ends to !ountries "ith relati'ely high &er !a&ita in!o%es.


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I*0DBs earns an in!o%e e'ery year fro% thereturn on its equity and fro% the s%all %arginit %a#es on lending.

The I*0D gets it %oney through the sale ofits $onds in international !a&ital %ar#ets and%e%$er8s su$s!ri&tions to its !a&ital sto!#.


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Inte'ntion( Dee(o*ment Assocition

The ID5 is the se!ond World *an# institutionand its %ain fo!us is hel&ing the &oorest!ountries in the "orld $y &ro'iding loans and

grants to $oost e!ono%i! gro"th, redu!einequality and i%&ro'e li'ing !onditions.

ID5 funding i%%unized nearly half a $illion!hildren, &ro'ided a!!ess to $etter "atersour!es for 1-; %illion &eo&le, and hel&ed @%illion &eo&le re!ei'e health ser'i!es.


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ID5 lends %oney on !on!essional ter%s. This

%eans that ID5 !harges little or no interest andre&ay%ents are stret!hed o'er - to : years,in!luding a > to 1:>year gra!e &eriod.

lends to !ountries "ith annual &er !a&itain!o%es of a$out =:: or less.

ID5 %ostly gets it %oney fro% go'ern%ent8s'oluntary !ontri$utions.


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Inte'ntion( Finnce Co'*o'tion

3sta$lished in 1@ to redu!e &o'erty andi%&ro'e &eo&leBs li'es in an en'iron%entally andso!ially res&onsi$le %anner.

finan!es &ri'ate se!tor in'est%ents, %o$ilizes!a&ital in international finan!ial %ar#ets, and&ro'ides te!hni!al assistan!e and ad'i!e togo'ern%ents and $usinesses.

&ro'ides $oth loan and equity finan!e for $usiness'entures in de'elo&ing !ountries.


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M)(ti(te'( Inestment .)'nteeAgenc#

The Multilateral Investment Guarantee

Agenc$ %MIGA 'as created in ()** as a

mem+er o, the -orld #an. Grou/ to

/romote ,oreign direct investment intodevelo/ing countries to su//ort economic

gro'th0 reduce /overt$0 and im/rove

/eo/le1s lives2 It ,ul,ills this mandate +$

o,,ering /olitical ris. insurance to investorsand lenders.


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Inte'ntion( Cente' $o' the Sett(emento$ Inestment Dis*)tes

The International Centre for 2ettle%ent ofIn'est%ent Dis&utes (IC2ID) &ro'idesinternational fa!ilities for !on!iliation andar$itration of in'est%ent dis&utes.

3sta$lished in 1@@ to &ro%ote in!reased flo" ofinternational in'est%ent.

ro'ides fa!ilities for the re!on!iliation ofdis&utes $et"een go'ern%ents and foreignin'estors.


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Cont'i")tion to Indi0s EconomicDee(o*ment

The World *an# has %ade a signifi!ant!ontri$ution to IndiaBs &lanned e!ono%i!de'elo&%ent through its dire!t as "ell as indire!t

assistan!e. I%&ortant as&e!ts of the *an#Bsassistan!e are as follo"s4

Founder>Me%$er

7oans 5ssistan!e fro% ID5 5ssistan!e fro% 5id India Clu$

The International Monetar$ Fund


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The International Monetar$ Fund


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CONCLUSIONThe ,uture o, +oth #retton -oods institutions remains uncertain2 #oth the IMF and

-orld #an. esca/ed the e,,orts o, the Re/u+lican 32S2 !ongress in the mid4())5s to

shar/l$ curtail and even eliminate +oth organi6ations2 These agencies have +een less

success,ul in ans'ering the charges ,rom the le,t0 as the IMF retains its demand ,or7structural ad8ustments9 and the -orld #an. have instituted some re,orms0 the$ have

+een una+le to a//ease the concerns o, outraged environmentalists0 la+or unionists

and nationalists and advocates o, indigenous /eo/les in the develo/ing 'orld2

Still0 as this essa$ have suggested0 these t'o organi6ations are reall$ the misguided

target ,or the legitimate concerns /eo/le o, all ideological stri/es have a+out the ra/id

/ace o, glo+ali6ation in the /ast hal, centur$2 It is li.el$ this glo+ali6ation 'ould haveoccurred 'hether or not there had +een a #retton -oods con,erence and it is all +ut

certain it 'ill continue in the ,uture regardless o, the /olicies /ursued +$ the IMF and

-orld #an.2 -hile it is true that the$ have o,ten +een too driven +$ 32S2 ,oreign /olic$

concerns0 in the end the in,luence o, +oth institution has +een 'idel$ overstated2 And

des/ite their mista.es during the /ast hal, centur$0 the$ have rarel$ +een given credit

,or man$ o, the little things the$ do 'ell2 For e"am/le0 +oth institutions /er,ormeconomic surveillance over most o, the 'orld1s econom$0 a valua+le tas. that no other

international or /rivate organi6ation could /er,orm 'ith such s.ill2 #oth agencies also

serve as a store o, e"/ert .no'ledge and 'isdom ,or countries throughout the 'orld

that lac. trained s/ecialists2 -hile neither the IMF nor the -orld #an. has met the lo,t$

goals o, their ,ounders or 'ielded the ne,arious in,luence charged +$ their critics0 the$

have and should continue to /la$ a small +ut im/ortant role in /romoting /ros/erit$and economic sta+ilit$ 'orld'ide2


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Re$e'ences

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htt&4eli$rary."orld$an#.orgdoi&df1:.1@11;>:>1$an#

htt&4""".!dd!.'t.edu#no"netlse>"orld$an#.&df

htt&4"""."orld$an#.org
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