21 November 2013
The International Monetary Fund
And the World Bank
Distinguishing between the International Monetary Fund and The World Bank may be difficult. The difference is the International Monetary Fund aim to maintain a structured system that manages receipts and payments between nations while the World Bank contains affiliates and invest into developing countries by intermediating between investors and recipients. The World Bank provides funding and technical assistance for policies and projects. These projects and policies take into consideration the countries economic potential and help build developing countries. The Bank recognizes these investments as long term as they provide interest rates that are slightly over the market rate and expect repayment in full by twelve to fifteen years. Around seventy-five percent of the Bank's lending is devoted to specific projects. These projects include but are not limited to building roads, power stations, industry, dams and agriculture. The World Banks primary goal is the reduction of poverty. The International Monetary Fund promotes economic stability and global growth to developing nations by providing policy advice and resources to assist with reducing poverty levels. The International Monetary Fund differs from the World Bank primarily because of its focus on managing receipts and payments between nations. Its main goal is to prevent undesirable economic policies, which in the past contributed to the Great Depression. The International Monetary Fund achieves this goal by working with other international organizations and urging its members to allow their national currencies to be exchanged without restrictions. Unlike the World Bank, Money received from the International Monetary Fund typically have interest rates that are slightly below market rates, and need to be repaid within three to five years compared to the World Bank which expects repayment in full by twelve to...
Cited: “Factsheet - The IMF and the World Bank." Factsheet - The IMF and the World Bank. N.p., 5 Aug. 2013. Web. 10 Nov. 2013.
Driscoll, David D. "The IMF and the World Bank: How Do They Differ?" The IMF and the World Bank: How Do They Differ? External Relations Department Publication, 19 Aug. 1996. Web. 12 Nov. 2013.
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