Essay:International Bank for Reconstruction and Development: IBRD (World Bank)”.
IMF:
In order to abolish all trade and exchange restrictions effectively and to promote the multilateral trade system, IMF was established on December 27, 1945. It started functioning from March 1,1947.
The main objective of IMF is to grant loans in foreign currencies to member countries to correct any disequilibrium in their balance of payments, when disequilibrium is of temporary nature and likely to be removed in the earliest possible period. According to the Article-1 of the agreement, the objectives of the IMP are:
(i) To promote international monetary cooperation through a permanent institution of the fund which provides the machinery for Consultation and Collaboration on international monetary problems;
(ii) To facilitate the expansion and balanced growth of international trade and to contribute thereby to the promotion and maintenance of high level of employment and real income;
(iii) To promote exchange stability and maintain orderly exchange arrangements among members by avoiding competitive exchange depreciation;
(iv) To assist in the establishment of a multi-lateral system of payments in respect of current transactions between members and elimination of foreign exchange restrictions which hamper the growth of world trade.
World Bank:
The World Bank Group (WBG) was established in 1944 to rebuild post-Worid WaMl Europe under the International Bank for Reconstruction and Development (IBRD). Today, the World Bank functions as an international organization that fights poverty by offering developmental assistance to middle-income and low- income countries. By giving loans and offering advice and training in both the private and public sectors, the World Bank aims to eliminate poverty by helping people help themselves. Under the World Bank Group, there are complimentary institutions that aid in its goals to provide assistance.
There are 189 member countries that are shareholders in the IBRD, which is the primary arm of the WBG.
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