International Financial Institutions: Difference Between IMF And World Bank
International Financial Institutions (IFIs) - IMF and WORLD BANK: Do they serve the purpose they were instituted for?
Vishal Suraj Pinto
University of the People
Introduction:
International Monetary Fund (IMF) and World Bank are together referred to as International Financial Institutions (IFIs). The sole purpose of these institutions to be structured and formed was to assist a member nation in strengthening their failing economy. Virtually, every existing country on earth is a member of these institutions and the governments of the member nations own and direct the institutions, at least on paper.
Is there a difference between the two organizations – IMF and World Bank?
From a layperson’s perspective, there may not seem much of a difference between the functioning of the two, considering how the two names appear together almost always. For a common man, IMF and World Bank are two organizations that lend money to the government of a nation. But YES, there is a difference between the functioning of the IMF and the World Bank.
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IMF is a cooperative institution that seeks to maintain an orderly system of payments and receipts between two nations. Basically, IMF is an arbitrator between two nations for the smooth functioning of financial engagement. Both World Bank and IMF have their different purpose, a distinct structure, receive funding from various sources, assist different categories of members, and strive to achieve distinct goals through different
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