The International Monetary Fund (IMF) is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty. Quotas of member countries are a key determinant of the voting power in IMF decisions. Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes. SDRS are an international type of monetary reserve currency created by the IMF as a supplement to the existing money reserves of member countries.

1. International Financial Institutions

2. Introduction
In many parts of the world, international financial institutions (IFIs) play a major role in the social
and economic development programs of nations with developing or transitional economies. This
role includes advising on development projects, funding them and assisting in their implementation.
Common Goals and Objectives:
• To reduce global poverty and improve people's living conditions and standards
• To support sustainable economic, social and institutional development
• To promote regional cooperation and integration.
IFIs achieve these objectives through loans, credits and grants to national governments. Such
funding is usually tied to specific projects that focus on economic and socially sustainable
development. IFIs also provide technical and advisory assistance to their borrowers and conduct
extensive research on development issues.

3. International Monetary Fund (IMF)
The International Monetary Fund (IMF) is an international organization that promotes global
economic growth and financial stability, encourages international trade, and reduces poverty.
Quotas of member countries are a key determinant of the voting power in IMF decisions.
Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes. SDRS are
an international type of monetary reserve currency created by the IMF as a supplement to the
existing money reserves of member countries.
History of the IMF
• The IMF was originally created in 1945 as part of the Bretton Woods agreement, which
attempted to encourage international financial cooperation by introducing a system of
convertible currencies at fixed exchange rates, with the dollar redeemable for gold at $35 per
ounce. The IMF oversaw this system: for example, a country was free to readjust its exchange
rate by up to 10% in either direction but larger changes required the IMF’s permission
• Since the Bretton Woods system collapsed in the 1970s, the IMF has promoted the system
of floating exchange rates, meaning that market forces determine the value of currencies relative
to one another

4. International Monetary Fund (IMF)
IMF Activities
• Surveillance: The IMF collects massive amounts of data on national economies, international
trade, and the global economy in aggregate, as well as providing regularly updated economic
forecasts at the national and international level
• Capacity Building: The IMF provides technical assistance, training and policy advice to member
countries through its capacity building programs. These programs include training in data
collection and analysis, which feed into the IMF's project of monitoring national and global
economies
• Lending: The IMF makes loans to countries that are experiencing economic distress in order to
prevent or mitigate financial crises. Members contribute the funds for this lending to a pool
based on a quota system. These funds total around SDR 475 billion ($645 billion) as of Sept. 2017
(IMF assets are denominated in special drawing rights, a kind of quasi-currency that is comprised
of set proportions of the world's reserve currencies. An SDR is essentially an artificial currency
instrument used by the IMF, and is built from a basket of important national currencies

5. World Bank
• The World Bank is an international organization dedicated to providing financing, advice, and
research to developing nations to aid their economic advancement. The bank predominantly acts
as an organization that attempts to fight poverty by offering developmental assistance to middle-
and low-income countries.
• Currently, the World Bank has two stated goals that it aims to achieve by 2030. The first is to end
extreme poverty by decreasing the number of people living on less than $1.90 a day to below 3%
of the world population. The second is to increase overall prosperity by increasing income
growth in the bottom 40% of every country in the world.
• The World Bank supplies qualifying governments with low-interest loans, zero-interest credits,
and grants, all for the purpose of supporting the development of individual economies. Debt
borrowings and cash infusions help with global education, healthcare, public administration,
infrastructure, and private-sector development.
• The World Bank also shares information with various entities through policy advice, research and
analysis, and technical assistance. It offers advice and training for both the public and private
sectors.

6. World Bank
History of World Bank
• The World Bank was created in 1944 out of the Bretton Woods Agreement*, which was secured
under the auspices of the United Nations in the latter days of World War II. The Bretton Woods
Agreement included several components: a collective international monetary system, the
formation of the World Bank, and the creation of the International Monetary Fund (IMF).
The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at
the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.
Thus, the name “Bretton Woods Agreement
*Approximately 730 delegates representing 44 countries met in Bretton Woods in July 1944 with
the principal goals of creating an efficient foreign exchange system, preventing competitive
devaluations of currencies, and promoting international economic growth.
• Since their founding both the World Bank and the International Monetary Fund have worked
together toward many of the same goals. The original goals of both the World Bank and IMF
were to support European and Asian countries needing financing to fund post-war
reconstruction efforts.

7. World Bank
World Banks
Through the years, the World Bank has expanded from a single institution to a group of five unique
and cooperative institutional organizations, known as the World Banks or collectively as the World
Bank Group.
• The first organization is the International Bank for Reconstruction and Development (IBRD), an
institution that provides debt financing to governments that are considered middle income.
• The second organization within the World Bank Group is the International Development
Association (IDA), a group that gives interest-free loans to the governments of poor countries.
• The International Finance Corporation (IFC), the third organization, focuses on the private sector
and provides developing countries with investment financing and financial advisory services.
• The fourth part of the World Bank Group is the Multilateral Investment Guarantee Agency
(MIGA), an organization that promotes foreign direct investments in developing countries.
• The fifth organization is the International Centre for Settlement of Investment Disputes (ICSID),
an entity that provides arbitration on international investment disputes.

8. World Banks
Through the years, the World Bank has expanded from a single institution to a group of five unique
and cooperative institutional organizations, known as the World Banks or collectively as the World
Bank Group.
• The first organization is the International Bank for Reconstruction and Development (IBRD), an
institution that provides debt financing to governments that are considered middle income.
• The second organization within the World Bank Group is the International Development
Association (IDA), a group that gives interest-free loans to the governments of poor countries.
• The International Finance Corporation (IFC), the third organization, focuses on the private sector
and provides developing countries with investment financing and financial advisory services.
• The fourth part of the World Bank Group is the Multilateral Investment Guarantee Agency
(MIGA), an organization that promotes foreign direct investments in developing countries.
• The fifth organization is the International Centre for Settlement of Investment Disputes (ICSID),
an entity that provides arbitration on international investment disputes.

9. International Bank for Reconstruction and Development (IBRD)
The International Bank of Reconstruction and Development (IBRD) is a development bank
administered by the World Bank. The IBRD offers financial products and policy advice to countries
aiming to reduce poverty and promote sustainable development. The International Bank of
Reconstruction and Development is a cooperative owned by 189 member countries.
Its main focus is on providing financing and economic policy advice to help the leaders of middle-
income countries navigate the path toward greater prosperity.
It will often help finance infrastructure projects that grow a country’s economic potential while
helping governments manage public finances and cultivate the confidence of foreign investors.
The IBRD was founded in anticipation of the end of World War II, during the Bretton Woods
Conference of 1944
The first loan ever issued by the International Bank Of Reconstruction and Development was to the
government of France, to help finance the reconstruction of critical infrastructure. Following the
reconstruction of Europe, the IBRD shifted its focus to promoting economic development in other
parts of the world.

10. International Finance Corporation
The International Finance Corporation (IFC) provides financing of private-enterprise investment in
developing countries around the world, through both loans and direct investments. Affiliated with
the World Bank, it also provides advisory services to encourage the development of private
enterprise in nations that might be lacking the necessary infrastructure or liquidity for businesses to
secure financing.
The IFC was established in 1956 as a member of the World Bank Group, focused on investing in
economic development. It claims to be the largest global development institution focused on the
private sector in developing countries. The IFC says it also seeks to ensure that private enterprises in
developing nations have access to markets and financing
The IFC's most recent stated goals include the development of sustainable agriculture, expanding
small businesses' access to microfinance, supporting infrastructure improvements, as well as
promoting climate, health, and education policies. The IFC is governed by its 184 member countries
and is headquartered in Washington, D.C.

11. Organisation for Economic Cooperation and Development
The Organisation for Economic Co-operation and Development (OECD) is a group of 37 member
countries that discuss and develop economic and social policy. OECD members are typically
democratic countries that support free-market economies. The stated goal of the Organisation for
Economic Co-operation and Development (OECD) is to shape policies that foster prosperity,
equality, opportunity and well-being for all. Functions of OECD include
• Promoting health and safety
• Promoting local and regional development
• Combating international tax avoidance
• Accelerating development
• Fighting corruption
• Guiding economic reforms of nations
• Improving educational system
The OECD was established on Dec. 14, 1960, by 18 European nations, plus the United States and
Canada. It has expanded over time to include members from South America and the Asia-Pacific
region. It includes most of the world's highly developed economies. The organization is
headquartered in the Chateau de la Muette in Paris, France.