What are the roles of the International Monetary Fund (IMF) and the World Bank?
What are the roles of the International Monetary Fund (IMF) and the World Bank? Which of these institutions is more controversial? Why?
The International Monetary Fund (IMF) was established in order to maintain the order in the international monetary system. The World Bank was set up to promote economic development and its role is the responsibility for policing the world trading system and making sure nation-states follow the rules made in trade treaties.
The IMF is the more controversial of the two sister institutions because it serves as the lender of last resort to states that have bad economies and losing value-currencies. the IMF is dominating the nations and requires them to implement specific economic policies which is made to retain and regain the stability and growth of their economy. Some of the IMF’s policy recommendations are not appropriate. To the contrary, the World Bank makes low-interest loans to poor nations that want to make infrastructure investments.