International Monetary Fund and World Bank

The International Monetary Fund is a cooperative international monetary organization. These institution was designed to be pillars of the post world war global economic order. Crisis prevention and conflict management became established as an important aspect of development policy in the 1990s. It is often assumed that the World Bank and International Monetary Fund in particular have considerable potential in establishing and maintaining peace and stability. The World Banks focus is on the provision of long-term loans to support development projects and programs. The IMF, on the other hand, concentrates on providing loans to stabilize countries facing short-term financial crises. The World Bank and IMF are directed by the governments of the worlds richest countries. Their fundamental difference is that the World Bank is primarily a developmental institution whereas the IMF is a cooperative institution that seeks to maintain an orderly system of payments and receipts between nations. Each has a different purpose, a distinct structure, receives its funding from different sources, assists different categories of members and strives to achieve its distinct goals through methods specific to itself. The primary aim of the World Bank was the financing of economic development and accordingly, the Bank's first loans, during the late 1940s, were disbursed in order to finance the reconstruction of the war-ravaged economies of Western Europe.

Keywords: World Bank, International Monetary Fund, monetary, economic order, IMF, long-term loans, financial crises, Inflation