Distinguish between international monetary fund and world bank
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HERE IS THE ANSWER.
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The World Bank is an umbrella institution of 5 institutions, IMF is like a fund made from contributions from member nations to advance monetary help to Nations in need.
The main differences between the World Bank (WB) and the International Monetary Fund(IMF) are:
1. Objective/Orientation (Internal Economy vs. External Balance):
The World Bank (WB) lends for undertaking development programmes - resources for building infrastructure, setting up facilities, etc. International Monetary Fund (IMF) gives 'assistance' funds so that External economic crises can be warded off, and other nations' debts (External debts) could be paid off. Essentially, WB has orientation towards addressing resource need for the progress of Internal economy (Growth - Reduction of poverty) and IMF is aimed towards maintaining External balance (Stability) of Members.
2. Nature of Operations (Lending vs. Assistance):
WB is a lending institution. IMF is not - It is a watchdog agency keeping tabs on External (exchange rate, Balance of Payment (BoP) operations) and Internal (Monetary) policies and debt-related economic health of member countries.
3. Structure of Institution (Bank vs. Fund):
WB is structured as a Bank - an intermediary between Investor countries and Borrowing countries. It has 188 members now.
On the other hand, IMF is a Fund pool - like a Co-operative Credit Society, where needy members get to borrow from it only upon acceding to terms and conditions for monetary-fiscal reforms and policy prudence. IMF too has 188 member countries.
4. Organizational Chart (Unitary vs. Multi-lateral):
IMF is a one-man army, it's a single Fund having 4 types of credit lines i.e. different types of loans with different tranches, conditions and strings.
On the other hand, World Bank has 2 Institutions in its books - the IBRD and IDA.
5. Attached Strings (Tied Loans vs. Fiscal Stringency):
The loans and assistance from World Bank as well as the IMF come with conditions and strings. In case of WB loans, the loans are normally not fungible and are tied. The IMF assistance comes with severe policy prescriptions and fiscal austerity measures.
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THANKS.
HERE IS THE ANSWER.
________________________________
The World Bank is an umbrella institution of 5 institutions, IMF is like a fund made from contributions from member nations to advance monetary help to Nations in need.
The main differences between the World Bank (WB) and the International Monetary Fund(IMF) are:
1. Objective/Orientation (Internal Economy vs. External Balance):
The World Bank (WB) lends for undertaking development programmes - resources for building infrastructure, setting up facilities, etc. International Monetary Fund (IMF) gives 'assistance' funds so that External economic crises can be warded off, and other nations' debts (External debts) could be paid off. Essentially, WB has orientation towards addressing resource need for the progress of Internal economy (Growth - Reduction of poverty) and IMF is aimed towards maintaining External balance (Stability) of Members.
2. Nature of Operations (Lending vs. Assistance):
WB is a lending institution. IMF is not - It is a watchdog agency keeping tabs on External (exchange rate, Balance of Payment (BoP) operations) and Internal (Monetary) policies and debt-related economic health of member countries.
3. Structure of Institution (Bank vs. Fund):
WB is structured as a Bank - an intermediary between Investor countries and Borrowing countries. It has 188 members now.
On the other hand, IMF is a Fund pool - like a Co-operative Credit Society, where needy members get to borrow from it only upon acceding to terms and conditions for monetary-fiscal reforms and policy prudence. IMF too has 188 member countries.
4. Organizational Chart (Unitary vs. Multi-lateral):
IMF is a one-man army, it's a single Fund having 4 types of credit lines i.e. different types of loans with different tranches, conditions and strings.
On the other hand, World Bank has 2 Institutions in its books - the IBRD and IDA.
5. Attached Strings (Tied Loans vs. Fiscal Stringency):
The loans and assistance from World Bank as well as the IMF come with conditions and strings. In case of WB loans, the loans are normally not fungible and are tied. The IMF assistance comes with severe policy prescriptions and fiscal austerity measures.
________________________________
THANKS.
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