11th August, 2016 (MAINS)


Q1. The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate. [10marks/2013/GS-2] 150 words.

Please write answer in the comments section.

  • karan bendekar

    Both the institutes work to support the world economy in their dynamic way..

    # selective functions of world bank other than IMF
    1) It provide long run capital to member countries, private institutes,especially in underdeveloped countries.
    2) provide long run capital investment for assuring Balance of Payment.
    3)established ‘economic developmental institutes’ to provide technical services..

    # selective functions of IMF other than world bank
    1) to establish stale currency convertibility with stable exchange rates.
    2) to provide extension of multilateral trade and payments
    3) to provide short term lending for current account transactions other than capital account .

    # although world bank and IMF have same following characteristics .
    1) both are controlled member countries.
    2) both concern their member countries on economic issues.
    3) both are dependent on each other;to maintain debt crisis and having stable monetary and financial movement..

    in these way (IMF AND World bank) can be called as pillars of world economic and finanancial order.