The IMF and World Bank
The IMF and the World Bank
I. Introduction
It is no doubt that the International Monetary Fund (IMF) and the World Bank have been playing an essential role in fostering economic stability and global growth for a long period of time. For the common good, they share the same goal of raising living standards for their member countries. And for that reason, there have been some people having difficulties in differentiate one from another. As a matter of fact, both the IMF and the World Bank are institutions in the United Nations system. Even though these institutions are heading over to the advancement and prosperity of global economy, the IMF concentrates on macro-economic issues whist the World Bank focuses on long-term economic development and poverty reduction.
II. Description
1. The IMF
It is true that the IMF works as a surveyor to oversee the global economy. The IMF is currently considered a specialized agency of the United Nations. To be more specific, it facilitates the expansion as well as the growth of international trade, providing advices and financing to member in economic difficulties to help achieving the stability of macro economy and reducing poverty. This gives rise to the maintenance and promotion of employment as well as the development of country’s resources. These actions can be the so-called underlying objectives of the economy policy. Another function among the ones upon the formation of IMF worth mentioning here is promoting the exchange stability. It means that the IMF has to oversee the exchange rate arrangements among countries. By doing that, it helps government manage exchange rate, then avoiding competitive exchange depreciation. More importantly, this function is the key factor that prevents the international economic crises and its spread. However, rather than maintaining only the exchange rates, it is more worthwhile to oversee the economic and financial policies in order to get a broader view on the reasons
I. Introduction
It is no doubt that the International Monetary Fund (IMF) and the World Bank have been playing an essential role in fostering economic stability and global growth for a long period of time. For the common good, they share the same goal of raising living standards for their member countries. And for that reason, there have been some people having difficulties in differentiate one from another. As a matter of fact, both the IMF and the World Bank are institutions in the United Nations system. Even though these institutions are heading over to the advancement and prosperity of global economy, the IMF concentrates on macro-economic issues whist the World Bank focuses on long-term economic development and poverty reduction.
II. Description
1. The IMF
It is true that the IMF works as a surveyor to oversee the global economy. The IMF is currently considered a specialized agency of the United Nations. To be more specific, it facilitates the expansion as well as the growth of international trade, providing advices and financing to member in economic difficulties to help achieving the stability of macro economy and reducing poverty. This gives rise to the maintenance and promotion of employment as well as the development of country’s resources. These actions can be the so-called underlying objectives of the economy policy. Another function among the ones upon the formation of IMF worth mentioning here is promoting the exchange stability. It means that the IMF has to oversee the exchange rate arrangements among countries. By doing that, it helps government manage exchange rate, then avoiding competitive exchange depreciation. More importantly, this function is the key factor that prevents the international economic crises and its spread. However, rather than maintaining only the exchange rates, it is more worthwhile to oversee the economic and financial policies in order to get a broader view on the reasons
References: http://www.preservearticles.com/201108019687/973-words-essay-on-world-bank.html http://www.imf.org/external/pubs/ft/exrp/differ/differ.htm#a7 http://www.munfw.org/archive/45th/ecosoc3.htm http://da-academy.org/imf_worldbank.pdf http://en.wikipedia.org/wiki/World_Bank http://en.wikipedia.org/wiki/International_Monetary_Fund