If you have difficulty distinguishing the World Bank from the International Monetary Fund, you are not alone. Most people have only the vaguest idea of what these institutions do?.

IMF (International Monetary Fund)

The work of the IMF is of three main types. Surveillance involves the monitoring of economic and financial developments, and the provision of policy advice, aimed especially at crisis-prevention. The IMF also lends to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction. Third, the IMF provides countries with technical assistance and training in its areas of expertise. Supporting all three of these activities is IMF work in economic research and statistics.

The IMF also plays an important role in the fight against money-laundering and terrorism.

World Bank Operations

The World Bank exists to encourage poor countries to develop by providing them with technical assistance and funding for projects and policies that will realize the countries' economic potential. The Bank views development as a long-term, integrated endeavor

The basic differences are.

International Monetary Fund
1) oversees the international monetary system .

2) promotes exchange stability and orderly exchange relations among its
member countries.

3) assists all members--both industrial and developing countries--that find themselves in temporary balance of payments difficulties by providing short- to medium-term credits.

4) supplements the currency reserves of its members through the allocation of SDRs (special drawing rights); to date SDR 21.4 billion has been issued to member countries in proportion to their quotas.

5) draws its financial resources principally from the quota subscriptions of its member countries.

6) has at its disposal fully paid-in quotas now totaling SDR 145 billion (about $215 billion) .

7) has a staff of 2,300 drawn from 182 member countries



World Bank

1) seeks to promote the economic development of the world's poorer countries.

2) assists developing countries through long-term financing of development projects and programs.

3) provides to the poorest developing countries whose per capita GNP is less than $865 a year special financial assistance through the International Development Association (IDA).

4) encourages private enterprises in developing countries through its affiliate, the International Finance Corporation (IFC).

5) acquires most of its financial resources by borrowing on the international bond market.

6) has an authorized capital of $184 billion, of which members pay in about 10 percent.

7) has a staff of 7,000 drawn from 180 member countries.