The World Bank and The International Monetary …：世界银行和国际货币….ppt

The International Monetary Fund and the World Bank,Jaclyn Williamson Jessica Phelan,What is the IMF?,The International Monetary Fund (IMF) International organization that oversees the global financial system by following the economic policies of its 185 member nations Particularly focuses on exchange rates, facilitating development, reducing poverty, and global cooperation. Also offers financial and technical assistance to its members using funds deposited with the IMF from member nations Last resort international lender Not without stipulations,Brief History of the IMF,Formally created in July 1944 during the United Nations Monetary and Financial Conference in Bretton Woods, NH Finalized on December 27, 1945 when 29 countries signed its Articles of Agreement Headquarters is in Washington, DC,Membership,Currently 185 members Any country can apply for membership Quotas A country can also withdraw from the IMF though this is rare Ex: Venezuela (still a member),Special Drawing Rates,Monetary unit for IMF and World Bank After collapse of Bretton Woods System (1973), SDR redefined as a basket of four currencies: Euro, Japanese yen, pound sterling, and U.S. dollar. Calculated daily on the basis of exchange rates quoted at noon each day in the London Market Allocations: General Special One-Time SDRs,Financial Crises and the IMF,1976 Great Britain Financial Crisis Asian Financial Crisis of 1997 Current Economic Crisis,1976 Financial Crisis in Great Britain,Investors became concerned that the pound was overvalued and that the government might devalue A large scale sale of sterling ensued, which rapidly lost value against the dollar Pound suffered from heavy inflation IMF issues$3.9 Billion Stipulations of Loan: Heavy cuts in public expenditure (around a 20% cut in the budget deficit) Improvement seen starting in 1977,Asian Financial Crisis of 1997,Thailand, Indonesia and Korea hit the hardest Key Issues: Foreign investing, US, China, defaulting on debt, depreciation, and bankruptcies IMF Rescue Packages US$35 Billion from IMF US$77 Billion raised from other countries Temporary credit Structural Adjustment Packages (SAPs) Criticism,Current Financial Crisis,Bankruptcy of Iceland in 2008 Pakistan approved by IMF for $874 million loan Other countries with SBAs from the IMF: Georgia, Ukraine, Hungary, Iceland, Latvia, Pakistan, Serbia, Belarus, and El Salvador The SBA is designed to help countries address short-term balance of payments problems. The length of a SBA is typically 1224 months, Repayment is due within 3¼-5 years,Controversy,The United States is the biggest shareholder in the IMF, holding nearly 18% in shares, and the IMF is generally considered a tool of the US Treasury. Criticism of bailouts Conditions added onto loans (SAPs) Ex: Argentina,The World Bank is a bank that provides assistance to developing countries with the goal being to reducing poverty and aid in their development. Provides low-interest loans and interest-free credits and grants to developing countries Made up of two Development Institutions: International Bank for Reconstruction and Development (IBRD) International Development Association (IDA).,What is the World Bank?,Formation: December 1945 Institutions: International Bank for Reconstruction and Development; International Development Association,The World Bank,Membership: 185 Countries President: Robert Zoellick Headquarters: Washington, D.C.,The World Bank Group is not the same as the World Bank Same President, Board of Directors, goals The WBG includes the two institutions of the World Bank, and in addition consists of: International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID),World Bank Group,Developed at the 1944 Bretton Woods conference in Bretton Woods, NH Originally, just the International Bank for Reconstruction and Development was formed First loans were for reconstruction of Europe after World War II After, the Bank focused attention on developing countries Has loaned over $330 billion to developing countries since its start,History of the World Bank,Formed at the Bretton Woods Conference Focuses its attention on middle-income and creditworthy poorer countries as opposed to developing countries Loans with low interest rates,International Bank for Reconstruction and Development (IBRD),Established in 1960 Assists the worlds poorest countries Interest-free credits and grants Serves to complement the IBRD Single largest source of donor funds for basic social service funds in developing countries,International Development Association (IDA),There are 185 countries who are members in the World Bank You must be a member of the IMF to be a member of the World Bank The World Bank is run by the governments of the member countries There is one president, and Executive Directors and a Board of Directors for each institution,Membership and Leadership in the World Bank,Loans, Grants Korea Millenium Development Goals Poverty Reduction Strategies Reconstruction after political conflicts Most recent operations,Major Activities,Structure Corporate powers,Criticisms of the World Bank,Criticisms of former President Paul Wolfowitz,Are they really reducing poverty? Conditionalities,McCallum, Bennett T. International Monetary Economics. New York: Oxford University Press, 1996. The World Bank homepage: www.worldbank.org “Head of World Bank Fraud Unit Resigns.”Steven R. Weisman. New York Times. (Late Edition (East Coast). New York, N.Y.: Jan 17, 2008. pg. A.14 “A World Bank without U.S. dominance; Chicagoland Final Edition” Kenneth Rogoff. Chicago Tribune. Chicago, Ill.: Apr 23, 2007. pg. 17 http:/www.brettonwoodsproject.org/item.shtml?x=320869 http:/www.imf.org/external/pubs/ft/exrp/differ/differ.htm http:/www.twnside.org.sg/title/louder.htm www.imf.org http:/news.yahoo.com/s/afp/20090330/wl_sthasia_afp/financeeconomyimfpakistanlead http:/www.nytimes.com/2008/10/10/business/worldbusiness/10icebank.html http:/www.normangirvan.info/wp-content/uploads/2009/03/imf-crisis-loans-chart-twn-march-2009.doc Buira, Ariel. The IMF and the World Bank at sixty. London: Anthem, 2005,Sources,