Answer: 

Introduction:

The World Bank (WB) and the International Monetary Fund (IMF) are two intergovernmental organizations established at the Bretton Woods Conference in 1944. Some commonalities, their role in promoting global economic development, their functions and mandates are distinct and different from one another.

Body:

• Elucidate these differences:
  • Purpose and Objectives: The World Bank’s primary goal is to promote economic development in low and middle-income countries by providing loans and grants for infrastructure projects, poverty reduction, and social welfare programs. The IMF’s primary purpose is to ensure global financial stability by providing loans and policy advice to countries facing balance of payment difficulties.
  • Membership: The World Bank is made up of 189 member countries, while the IMF has 190 member countries. The membership of the IMF is mandatory for all UN member states, while the World Bank is a voluntary organization.
  • Structure: The World Bank is composed of two separate institutions, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), each with its own governance structure. The IMF has a single governing body, the Board of Governors, which is composed of one representative from each member country.
  • Financing: The World Bank raises funds by issuing bonds in international capital markets and by borrowing from member countries, while the IMF’s resources come primarily from quota subscriptions paid by member countries.
  • Focus: The World Bank primarily focuses on poverty reduction, infrastructure development, and social welfare programs, while the IMF’s focus is on macroeconomic stability and providing loans to countries experiencing financial crises.

Conclusion:

The World Bank and the IMF are two important institutions in the global economic and financial order, but they have different roles, functions, and mandates. The World Bank focuses on providing financial and technical assistance for development projects, while the IMF is primarily responsible for ensuring global economic stability and providing short-term financial assistance to countries in need. Understanding their distinct differences is crucial for effective policy-making and economic development.