The International Monetary Fund (English: International Monetary Fund, IMF) was established on December 27, 1945. It is one of the two major financial institutions in the world. Its responsibilities are to monitor currency exchange rates and trade conditions of various countries, and provide technical support. and financial assistance to ensure the proper functioning of the global financial system; its headquarters are in Washington.

Organization and Purpose

The International Monetary Fund has 186 member countries and is committed to promoting global financial cooperation, strengthening financial stability, promoting international trade, increasing high employment rates, and promoting economic development. "An organization for stable growth and poverty reduction". Currently, only United Nations member states (except North Korea, Liechtenstein, Cuba, Andorra, Monaco, Tuvalu, Venezuela and Nauru) have the right to become members of the International Monetary Fund, but some Areas with territorial disputes (Palestinian Autonomous Government, etc.) are not included.

Organizational Structure

The highest authority of the International Monetary Fund is the Board of Governors. Each member region is represented by a chief and deputy director, usually the finance minister or central bank governor of the country. The board of directors holds a meeting in September every year, and the voting rights of each member are determined according to the amount of their contribution to the fund.

The Executive Board is entrusted by the Board of Directors to exercise the powers of the Board of Directors and handle daily affairs. The association is composed of 24 executive directors, elected every two years, with 1 president and 3 vice presidents. The director has a term of five years and is elected by the executive board and can be re-elected. The executive directors are appointed by the United States, the United Kingdom, France, Germany, and Japan, and the remainder are elected by constituencies composed of other members. The Interim Committee of the International Monetary Fund is regarded as the decision-making and guidance body of the International Monetary Fund. The main task of the association is to coordinate policy cooperation, especially the formulation of medium-term strategies. The association consists of 24 executive directors. The International Monetary Fund holds its annual meeting together with the World Bank every year.

Differences from the World Bank

The main role of the International Monetary Fund is as an auditor. Its job is to record trade figures and debts between countries, and preside over the formulation of international financial instruments. Monetary economic policy. As for the World Bank, it mainly provides long-term loans. The World Bank works like an investment bank, issuing bonds to companies, individuals or governments and lending the proceeds to recipient countries.

The IMF was established to stabilize the currencies of various countries and monitor the foreign exchange market. Since the IMF is not a bank, it does not lend money. However, the International Monetary Fund has reserves that countries can borrow to stabilize their currencies for short periods of time; this is similar to overdrafting a current account. The loan amount must be repaid within 5 years.

The United States plays the role of the big brother with 17.09% of quotas and voting rights

The World Bank Group (English: World Bank Group, abbreviated WBG) is an international organization. The original mission was to help rebuild the country that was devastated in World War II. Today its mission is to help countries overcome poverty and jointly provide low-interest loans, interest-free credits and grants to developing countries, with each agency playing a unique role in its mission to alleviate poverty and improve living standards.

The World Bank Group consists of 5 institutions, namely:

International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA)

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

International Center for Settlement of Investment Disputes (ICSID)

Among them, IBRD and IDA Often collectively referred to as the "World Bank". However, the term "World Bank" is also informally used as the abbreviation of the World Bank Group.

The World Bank's work is often harshly criticized by NGOs and academics, and sometimes its own internal review questions some of its decisions. The World Bank is often accused of being the executor of economic policies by the United States or Western countries that benefit themselves. In addition, market economic reforms are often introduced too quickly, incorrectly, in the wrong sequence, or under inappropriate circumstances. Instead, it wreaks havoc on the economies of developing countries.