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World Bank and the International Monetary Fund - Essay Example

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World Bank and International Monetary Fund are vital for the U.S citizens to lend money to people in other countries because through such organizations,…
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World Bank and the International Monetary Fund
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World Bank and the International Monetary Fund

Download file to see previous pages... Through lending money, the bank supports the ambition of developing nations to join the European Union. This is done through Country Assistance Strategy. Work Bank provides both technical and financial assistance to the developing countries based on the assessment of the priorities of the country, creditworthiness and past portfolio performance (Sadler, 2009). In addition, the World Bank maintains macroeconomic stability, fosters human development, promotes sustainable growth of private sector and improves business environment, and also improves governance and strengthens institutions via building inclusive and efficient public institutions.
The role of International Monetary Fund in providing loans to countries is somehow similar to those of World Bank. The International Monetary Fund has a mandate to oversee international financial and monetary system as well as monitor the financial and economic policies of the member countries. This is done through surveillance which enhances international cooperation. The International Monetary Fund also puts up lending conditions that ensure borrowing countries will repay the loan and that the nation will not solve its balance of payment in a manner to negatively affect the international economy (Sadler, 2009). Summarily, International Monetary Fund fosters economic stability and global growth, and poverty reduction through ...Download file to see next pagesRead More
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