International Financial Institutions

Topics: International Monetary Fund, European Union, World Bank Pages: 3 (726 words) Published: October 13, 2010
International financial institutions

International financial institutions refer to financial institutions that have been established by more than one country, and are subject to international law. Their owners or shareholders are generally national governments, although other international institutions and organizations occasionally figure as shareholders. The World Bank, the International Monetary Fund and the European Investment Bank are international financial institutions.

The World Bank provides leveraged loans to developing countries for capital programs. It was created in 1944 during the Bretton Woods Conference, the United States and the United Kingdom dominated negotiations even though other countries were attending. The World Bank's current focus is on the achievement of the Millennium Development Goals, lending primarily to middle-income countries at interest rates which reflect a small mark-up over its own borrowings from capital markets. The Bank’s mission is to aid developing countries and their inhabitants to achieve development and the reduction of poverty. The World Bank sees the five key factors necessary for economic growth and the creation of an enabling business environment as: 1. strengthening governments and educating government officials. 2. Implementation of legal and judicial systems for the encouragement of business, the protection of individual and property rights and the honoring of contracts. 3. The establishment of strong systems capable of supporting endeavors from micro credit to the financing of larger corporate ventures. 4. Support for countries' efforts at eradicating corruption. 5. The World Bank provides platform for research on development issues, consultancy and conduct training programs open for those who are interested from academia, students, government and non-governmental organization officers etc. The President of the Bank, currently Robert B. Zoellick, is responsible for chairing the meetings of...
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