Examine the role of IMF and World Bank in International Financing.
Answers
The IMF maintains its mission in three ways. First, it keeps track of the global economy and those of its member countries. The group employs a number of economists who monitor member countries' economic health. Each year, the IMF provides each country with an economic assessment. Secondly, it gives practical help to members by providing policymakers by helping them plan fiscal policies, coming up with tax and fiscal legislation, and overseeing the economy through analysis. Finally, it lends to countries with balance of payments difficulties. It provides this financial assistance as long as the borrowing country implements initiatives suggested by the IMF.
The World Bank's purpose is to aid long-term economic development and reduce poverty in developing countries. It accomplishes this by making technical and financial support available to countries. The bank initially focused on rebuilding infrastructure in Western Europe following World War II and then turned its operational focus to developing countries.
World Bank support helps countries reform inefficient economic sectors and implement specific projects, such as building health centers and schools, or making clean water and electricity more widely available.