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World Bank & IMF (1 Viewer)
- Thread starter marsenal
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AGB
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yeah....the world bank was originally established to help world countries virtually destroyed by war II, however it is not as significant as it used to be
and the imf hasnt been doing too well lately......they hav been severely criticised with their dealing of the situation in russia (transition from communism) and south america (successive collapse of economies) as well as the asian crisis
and the imf hasnt been doing too well lately......they hav been severely criticised with their dealing of the situation in russia (transition from communism) and south america (successive collapse of economies) as well as the asian crisis
marsenal
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Would it be fair to say that World Bank lends out money for projects the country chooses to perform out of their own reasoning (and projects that they don't neccessarily need to perform), whereas the IMF provides funding to countries that are in financial crisis and in effect don't have much of a choice in whether they should or shouldn't borrow, thus meaning that the IMF can impose unfair regulations on that country.
AGB
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the world bank focuses on developing countries and usually places certain restrictions on them in return for funds
the imf is responsible for the maintenance of the global financial system. they achieve this primarily through currency crisis management i.e. they recently lent shit loads (like a billion $$$ ???) to argentina to help them out coz they r pretty much royally f**ked
the imf is responsible for the maintenance of the global financial system. they achieve this primarily through currency crisis management i.e. they recently lent shit loads (like a billion $$$ ???) to argentina to help them out coz they r pretty much royally f**ked
B
Bambul
Guest
Here's what I know. Some of it might be a little off, but hopefully it will help you understand the IMF a bit more.
The IMF was set up when the world had almost universally pegged exchage rates. The idea was that each country would peg its exchange rate, buying surplus currency and selling when shortages occured. If the central bank ran out of foreign reserves then it could borrow from the IMF in the short run and devalue its currencies exchange rate in the long run.
Up until the mid 90's about half of the wolds countries still ran with fixed exchange rate systems, although in the previous decade many have floated (eg. Argentina, Thailand, Indonesia) whereas a few have maintained them (eg. China, Malaysia, Hong Kong).
Now the IMF lends money more to countries that have trouble raising funds to fund their budget deficits (because the capital markets see them as too risky and will only lend to developed economies in North America, Western Europe and part of East Asia) than to countries that need to prop up their exchange rates.
The IMF was set up when the world had almost universally pegged exchage rates. The idea was that each country would peg its exchange rate, buying surplus currency and selling when shortages occured. If the central bank ran out of foreign reserves then it could borrow from the IMF in the short run and devalue its currencies exchange rate in the long run.
Up until the mid 90's about half of the wolds countries still ran with fixed exchange rate systems, although in the previous decade many have floated (eg. Argentina, Thailand, Indonesia) whereas a few have maintained them (eg. China, Malaysia, Hong Kong).
Now the IMF lends money more to countries that have trouble raising funds to fund their budget deficits (because the capital markets see them as too risky and will only lend to developed economies in North America, Western Europe and part of East Asia) than to countries that need to prop up their exchange rates.
from what i know: (i could be wrong)
world bank - primary role is to help poor countries by providing funds and infrastructure.
Imf - stablises the economy and intervenes in the economy. Usually imposes a more "western" economy in the nation.
hmm i dunno =(
world bank - primary role is to help poor countries by providing funds and infrastructure.
Imf - stablises the economy and intervenes in the economy. Usually imposes a more "western" economy in the nation.
hmm i dunno =(