Imf and World Bank
IMF and World Bank |
I. International Monetary Fund 1. History 2. Gorvernance 3. Aims and Functions 4. Criticism II. World Bank 1. History 2. Organization 3. Aims 4. Functions 5. Voting system 6. Criticism III. Difference between IMF and World Bank IV. Questions V. References
I. IMF (International Monetary Fund)
1. History
The IMF (International Monetary Fund) was established in July, 1944, in the end of World War II. It was also the time when Great Depression 1930s occurred. The representatives from 45 countries had met in Hampshire, northern USA to find a solution for the depression, and they agreed to create an international economic cooperation with the main goals were stabilizing exchange rates and assisting reconstruction after World War II. IMF came to existence in 1945 when 29 countries members signed the Article Agreement and began operation in 1947. At this time, all members agreed to par value system or also known as the Bretton Woods system. This system is explained: “the countries keep their exchange rates (the value of their currencies in terms of the U.S. dollar and, in the case of the United States, the value of the dollar in terms of gold) pegged at rates that could be adjusted only to correct a "fundamental disequilibrium" in the balance of payments, and only with the IMF's agreement”. (History, IMF website)
In 1971, since the US government suspended the convertibility of dollar into gold, the Bretton Woods system collapse, the members of IMF can be free to choose any form of exchange currencies that they wish and allow the currencies to float freely.
Since the established day, IMF had helped many countries to go through economical crisis, for example, they lend Mexico 17 billion USD in 1983, help Russian 6.2 billion USD with the economic reforming 1995 or help Brazil to stable
I. International Monetary Fund 1. History 2. Gorvernance 3. Aims and Functions 4. Criticism II. World Bank 1. History 2. Organization 3. Aims 4. Functions 5. Voting system 6. Criticism III. Difference between IMF and World Bank IV. Questions V. References
I. IMF (International Monetary Fund)
1. History
The IMF (International Monetary Fund) was established in July, 1944, in the end of World War II. It was also the time when Great Depression 1930s occurred. The representatives from 45 countries had met in Hampshire, northern USA to find a solution for the depression, and they agreed to create an international economic cooperation with the main goals were stabilizing exchange rates and assisting reconstruction after World War II. IMF came to existence in 1945 when 29 countries members signed the Article Agreement and began operation in 1947. At this time, all members agreed to par value system or also known as the Bretton Woods system. This system is explained: “the countries keep their exchange rates (the value of their currencies in terms of the U.S. dollar and, in the case of the United States, the value of the dollar in terms of gold) pegged at rates that could be adjusted only to correct a "fundamental disequilibrium" in the balance of payments, and only with the IMF's agreement”. (History, IMF website)
In 1971, since the US government suspended the convertibility of dollar into gold, the Bretton Woods system collapse, the members of IMF can be free to choose any form of exchange currencies that they wish and allow the currencies to float freely.
Since the established day, IMF had helped many countries to go through economical crisis, for example, they lend Mexico 17 billion USD in 1983, help Russian 6.2 billion USD with the economic reforming 1995 or help Brazil to stable