The IMF and the World Bank-what's the difference?
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The IMF and the World Bank were conceived at the Bretton Woods conference in July 1944 as institutions to strengthen international economic cooperation and to help create a more stable and prosperous global economy. While these goals have remained central to both institutions, their mandates and functions differ, and in both cases their work has evolved in response to new economic developments and challenges.
The IMF promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and technical assistance so they can establish and maintain financial stability and external viability, and build and maintain strong economies. The Fund's loans are provided in support of policy programs designed to solve balance of payments problems-that is, situations where a country cannot obtain sufficient financing on affordable terms to meet net international payments. Some IMF loans are relatively short term (for periods of about a year, repayable in 3-5 years) and funded by the pool of quota contributions provided by its members. Other IMF loans are for longer periods (up to 3 years, repayable in 7-10 years), including concessional loans provided to low-income members on the basis of subsidies financed by past IMF gold sales and members' contributions. In its work in low-income countries, the IMF's main focus is on how macroeconomic and financial...
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