PRESENTATION ON‘WORLD BANK’ AND ‘IMF’

November, 2009

Prepared for:

Mehedi Hasan Md. Hefzur RahmanAssociate Professor and HeadBusiness Administration DisciplineKhulna University.

Presented By: Group- ‘GLADIATORS’

Salahuddin Yousuf # 07 03 30 Sandip Sarker # 07 03 35 Arifuzzaman Khan # 07 03 44 Tanvir Azam # 07 03 48

IMF and The World Bank

• The International Monetary Fund (IMF) maintains international monetary cooperation among its members

• The World Bank aids in the development and reconstruction of its members

World Bank: At a glance

• Mission: To help developing countries

and their people reach the goals by working with WB’s

partners to alleviate poverty.

Formation 17 December, 1945

Membership 186 countries

President Robert B. Zoëlick

Headquarter Washington DC.

24 Vice-Presidents, 3 Senior Vice Presidents and 2 Executive Vice Presidents

IMF- At a glance

Key issue: (Financial Crisis, Reforming Global Governance, Globalization ,Lending, Advanced economies, Emerging Markets, Low-Income Countries, Technical Assistance).

Executive Board: 24 Directors representing countries or groups of countries.

Biggest borrowers: Hungary, Mexico, Ukraine.

Formation: July, 1944

Membership: 186 countries. ( Kosovo last)

Headquarter: Washington DC.

•MD : Dominique Strauss-Kahn.

•Staff: 2,478 from 143 countries

History: IMF and World Bank

• After the Great Depression in the 1930s there was a need for an organization to create a system for exchange rate stability

– Uncertainty of the value of paper money (no longer used the gold standard)

– Countries began cheating other countries in trade

• Countries’ economies affected by WWII– need for reconstruction in well-developed nations– need for development in the lesser developed nations

Bretton Woods Conference

• 1940s proposals for monetary system by Harry Dexter White (U.S.) and John Keynes (UK)– establish the value of each currency– eliminate restrictions and certain practices on trade – assistance for post-war reconstruction

• Bretton Woods Conference, New Hampshire, July 1944 with delegates of 44 nations– final negotiations of the IMF and the World Bank took place

IMF

Objectives of the IMF

Expansion and balanced growth of international trade

Promote exchange rate stability

Shorten the duration and lessen the degree of disequilibrium in international balances of payments

Make resources of the Fund available to members

Promote international monetary cooperation

IMF’s Actions

Temporary tightening of

monetary policy

Correct the weaknesses

in the financial system

Remove features of

the economy that were

impediments to growth

Assist in reopening

lines of external financing

Maintaining a sound

fiscal policy

Members with largest quotas

WORLD BANK

WORLD BANK

World Bank

• International Bank for Reconstruction and Development (IBRD)

• International Development Association (IDA)• International Finance Corporation (IFC)• Multilateral Investment Guarantee Agency

(MIGA)• International Center for the Settlement of

Investment Disputes (ICSID)

Made up of 5

different organizati

ons

International Bank for Reconstruction and Development

• Founded in 1944 at the Bretton Woods Conference– to finance the reconstruction

of countries affected by WWII– help with development of

impoverished nations• World Bank’s central institution• 186 member countries

International Development Association

• Established in 1960– assist the poorest developing countries

• lends to countries with annual per capita incomes of about $800 or less– It’s loans are knows as “credits”

• 161 members• Known as soft loan window

Roles and contribution of WB & IMF towards BD

• Works with the Government of Bangladesh to assist in attaining goals of reducing poverty and improving the lives of people.

• Also works closely with other development partners (NGO, civil society, academia) 

• For the current financial year FY09, World Bank has provided concessional lending above $1 billion.

Continued…..

Continued…..

• All World Bank loans to Bangladesh are interest free IDA credits.

• Its current portfolio in the country includes 27 active projects.

• The World Bank has supported the Government’s rural development, education, social protection and health programs that helped the country in achieving the MDGs. 

• Basic infrastructure (electricity, support for power generation, the construction of the Padma Bridge)

CRITICISM

Criticism of IMF

The privatization aspects have also been criticized.Moral Hazard.Decline in Public Services.Takes away political autonomy.Exacerbates Economic Problems.One Size Fits All.

Criticism of WB

deeply implicated in contemporary modes of donor

free market reform policies.

views and prescriptions may

undermine or eliminate

alternative

represent the largest donors.

shifted from "lender of last resort" to an international

welfare organization

loans privilege large

infrastructure projects .

Thank you

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