Name
Samra Rafeequ
Roll Number
Bsf1604000
Assignment
2nd
Subject
International Finance
Section
B
Program
BBA (Morning)
University of Education Lower Mall Campus
Lahore
International Monetary Funds (IMF)
The International Monetary Fund (IMF) is an international organization that provides
financial assistance and advice to member countries. The IMF is responsible for the creation
and maintenance of the international monetary system, the system by which international
payments among countries take place. The IMF focuses and advises on the macroeconomic
policies of a country, which affect its exchange rate and its government's budget, money and
credit management. Created in 1945, the IMF is governed by and accountable to the 189
countries that make up its near-global membership. The IMF's primary purpose is to ensure
the stability of the international monetary system. 150 nationalities represented by staff, 24
executive directors representing 189 member countries. $1 trillion total amount the IMF is
able to lend its member countries.0% interest rate on loans to low income countries. $303
million for hand on technical advice, policy oriented training, and peer learning.
The Board of Governors is the highest decision-making body of the IMF. It consists of one
governor and one alternate governor for each member country. The governor is appointed by
the member country and is usually the minister of finance or the head of the central bank. The
Boards of Governors of the IMF and the World Bank Group normally meet once a year,
during the IMF-World Bank Spring and Annual Meetings, to discuss the work of their
respective institutions. The IMF Board of Governors is advised by two ministerial
committees, the International Monetary and Financial Committee (IMFC) and the
Development Committee. The IMFC has 24 members, drawn from the pool of 189 governors.
The IMF’s 24-member Executive Board conducts the daily business of the IMF and exercises
the powers delegated to it by the Board of Governors, as well as those powers conferred on it
by the Articles of Agreement.
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.
The World Bank currently has more than 10,000 employees in more than 120 offices
worldwide. The World Bank is like a cooperative, made up of 189 member countries. These
member countries, or shareholders, are represented by a Board of Governors, who are the
ultimate policymakers at the World Bank. Generally, the governors are member countries'
ministers of finance or ministers of development. They meet once a year at the Annual
Meetings of the Boards of Governors of the World Bank Group and the International
Monetary Fund. The governors delegate specific duties to 25 Executive Directors, who work
on-site at the Bank. The five largest shareholders appoint an executive director, while other
member countries are represented by elected executive directors. The World Bank Group
President chairs meetings of the Boards of Directors and is responsible for overall
management of the Bank. The President is selected by the Board of Executive Directors for a
five-year, renewable term. The Executive Directors make up the Boards of Directors of the
World Bank. They normally meet at least twice a week to oversee the Bank's business,
including approval of loans and guarantees, new policies, the administrative budget, country
assistance strategies and borrowing and financial decisions.
Asian Development Bank
Founded in 1966, the Asian Development Bank's (ADB) headquarters are in Manila,
Philippines. The Asian Development Bank's primary mission is to foster growth and
cooperation among countries in the Asia-Pacific Region. It has been responsible for a number
of major projects in the region and raises capital through the international bond markets. The
ADB also relies on member contributions, retained earnings from lending, and the repayment
of loans for funding of the organization. The Asian Development Bank provides assistance to
its developing member countries, the private sector, and public-private partnerships through
grants, loans, technical assistance, and equity investments to promote development.
The highest decision making tier at ADB is its Board of Governors, to which each of ADB’s
67 members nominate one Governor and an Alternate Governor to represent them. The Board
of Governors meets formally once a year at an Annual Meeting held in a member country.
The ADB President, under the Board’s direction, conducts the business of ADB. The
President is elected by the Board of Governors for a term of five years and may be re-elected.
The President is elected by the Board of Governors for a term of five years and may be
reelected. He is also the legal representative of ADB.
The Board of Directors approved the recommendation on the reassignment of the functions
and duties of the operations vice presidents. The President has also approved the structure of
the four realigned regional departments. ADB raises funds through bond issues on the
world’s capital markets. It also utilizes its members’ contributions and retained earnings from
lending operations. These sources comprise ADB’s ordinary capital resources and account for
74.1% of lending to ADB’s developing member countries. Loans are also provided from
Special Funds Resources financed mostly from contributions of donor members for ADB’s
concessional loan and technical assistance programs.
