The World Bank and The IMF: Twins or Rivals? Essay -- Economy Economic

The innovation savings bank and The IMF Twins or Rivals? Both institutions, the World trust and the International financial Fund, were established to a greater extent than fifty years ago and the foundations of both were expect to play roles in stabilizing the frustrated global economy and aiding post-war European countries as well as other developing countries for stinting progress. In the first three decades, both institutions had their own respective functions and extensively set-aside(p) in different economic and financial activities. In general, the World Bank primarily concentrated on making long term loans to finance infrastructural projects in developing countries, as the IMF mainly provided economic consultation as well as short-term loans to both developed and developing countries (Driscoll). However, the distinctive differences started disappearing since the beginning of 1970s, as both began to involve in more and more similar economic activities. As such, these over lapping activities blurred the functions between the two institutions, in which case a restructuring reform might be required to avoid potential conflicts. Although both organizations were non identical tally as they were born in the first place, the relationship between them was in truth close. According to the World Banks article of agreement, in array for a country to be able to become a particle of the Bank, it must be a member of the Fund (Polak 1). There ar two reasons behind this rule First, it can prevent free ridership that could by chance enables members of one organization to misuse their rights in the realism monetary market. Second, it is astray believed that a good lending of the World Bank heavily depended on a countrys stable monetary market, which can be secured by... ...hirty years. Today, although they are facing certain critiques for some of their inconsistent policies that are not accepted by some economists, both are striving for a common goal to achie ve the establishment of the stability in the world economy as well as the entire global economic wealth. Works CitedDriscoll, David. D. The IMF and The World Bank How Do They Differ? Aug. 1996. 23 Nov. 2002. Moffitt, Michael. The Worlds Money. New York Simon and Schuster, 1995.Naim, Moises. Fad and Fashions in Economic Reforms Washington Consensus or Washington Confusion? 26 Oct. 1999. 20 Nov. 2002. Polak, Jacques J. The World Bank and The IMF A Changing Relationship. Washington D.C. The Brookings Institution, 1994.