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IMF and World Bank

The main difference between the International Monetary Fund (IMF) and the World Bank lies in their respective purposes and functions:

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Minh Hà
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133 views2 pages

IMF and World Bank

The main difference between the International Monetary Fund (IMF) and the World Bank lies in their respective purposes and functions:

Uploaded by

Minh Hà
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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IMF and world bank

·        Difference between IMF and World Bank: The main difference between
the International Monetary Fund (IMF) and the World Bank lies in their
respective purposes and functions:

-          IMF ( The International Monetary Fund ) is an international


organization that promotes global economic growth and financial stability,
encourages international trade, and reduces poverty.

Ex: IMF has approved a "contingency credit" with total value of 11 billion
USD for Peru, with a disbursement period of 3 years, also for the purpose
of responding to the negative economic impacts of COVID-19.

-          World bank is an international organization dedicated to providing


financing, advice, and research to developing nations to aid their economic
advancement. The bank predominantly acts as an organization that attempts
to fight poverty by offering developmental assistance to middle- and low-
income countries.

Ex: In 2021, WB intends to invest to Vietnam 7 projects with total


investment 1,4B USD. The capital will focus on a number of areas such as
infrastructure, urban areas, energy…

·        Differences

-          Function of IMF Vs. World Bank

IMF focuses on economic stability, poverty reduction and a steady


economic growth of the member states.  World Bank on the other hand
focuses on economic development of developing countries and provides
channels for borrowing.

Size

The World Bank is larger than the IMF in terms of size which is measured
by looking at the members of staff. IMF has got a total of 2,300 staff
members approximately while World Bank has got an approximate of 7,000
staff members. The World Bank is more than three times larger than the
IMF.

-          Organizational Structure
IMF is a unitary organization with four credit lines while the World Bank is
a Bilateral organization with two major constituents which are;
International Bank for Reconstruction and Development (IBRD) and
International Development Association (IDA).

-          Constituents

The IMF has 188 member countries while the World Bank has 188 member
countries of the International Bank for Reconstruction and Development
(IBRD) and 172 member countries of the International Development
Association (IDA).

-          Operations

The IMF provides advice and assistance while the World Bank lends
finances to its member countries.

-          Objective

The IMF's major objective is to deal with financial matters and


macroeconomics. The main objective of the World Bank on the other hand
is to promote economic development.

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