This presentation talks about major functions of IMF, World Bank and the latest addition in International Banking 'NDB' (BRICS bank). Criticism faced by IMF and WB, Areas these banks basically work in.

1. ASHWANI SINGH –A22
ARJUN SINGH – A18
SIKHA UPADHAYE- A61
JASLEEN SANDHU- A37
ARTI YADAV- A19
SHWETA BADUNI-

2. IMF WORLD BANK
MOTTO Working for a World Free of
Poverty
MEMBER COUNTRIES 188 188 countries (IBRD)
172 countries (IDA)
HEADQUARTERS Washington D.C (USA) Washington D.C (USA)
HEAD Christine Lagarde (MD) JIM YONG KIM (PRESIDENT) 2

3. THE GREAT DEPRESSION
• The Great Depression was a severe
worldwide economic depression in the
decade precedingWorld War II
• The timing of the Great Depression
varied across nations, but in most
countries it started in 1930 and
lasted until the late 1930s or middle
1940s
• It was the longest, deepest, and most
widespread depression of the 20th
century
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Unemployment
reached up to 20%
in USA during this
period

4. IMF & WORLD BANK
• Together these two Institutions are
known as BRETTON WOODS
INSTITUTIONS (named after a village in
New Hampshire (USA))
• Founded by the delegates of 44 nations
in July 1944
• World Bank and IMF are twin
intergovernmental pillars supporting
world's economic and financial order
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5. CHRISTINE LAGARDE
• Designation: Managing Director
• Assumed office: 5th July’11
• Born: 1st January 1956
• Nationality: French
• Preceded by: Dominique Strauss
Kahn
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6. INTERNATIONAL MONETARY FUND (IMF)
STRUCTURE
• The IMF is small (about 2,300 staff members) institution
• It has no affiliates or subsidiaries.
• Most of its staff members work at headquarters in Washington, D.C.,
although three small offices are maintained in Paris, Geneva, and at the
United Nations in New York. Its professional staff members are for the
most part economists and financial experts.
FUNCTIONS
• Works to foster global growth and economic stability
• Provides policy advice and financing to members in economic difficulties
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7. • Works with developing nations to help them achieve macroeconomic
stability and reduce poverty
• Provide short-term capital to aid balance of payments
• Examining the economic policies of countries with IMF loan
• IMF also researched what types of government policy would ensure
economic recovery
• IMF provides emergency assistance via the newly introduced Rapid
Financing Instrument (RFI) to all its members facing urgent balance of
payments needs
• Low-income countries can borrow on concessional terms (which means
there is a period of time with no interest rates
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8. MEMBERS OF IMF
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9. MEMBERSHIP
There are two types of members:
ORIGINAL MEMBERS: All those countries whose representatives took part
in Bretton woods conference and who agreed to be the members of the
fund prior to 31st December 1945
ORDINARY MEMBERS: All those who became a part of this institution
subsequently
NOTE: The Institution has the authority to suspend any member and
similarly every member is free to resign
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10. LATEST NEWS: Jamaica surpassed all critical first quarter
targets under IMF facility – EPOC (Economic Programe
Oversight Committee )
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11. Criticisms
• Conditions for loans
• Exchange rate reforms
• Devaluations
• Free-market criticisms of the IMF
• Lack of transparency and involvement
• Supporting military dictatorships
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12. Opportunities and future outlook of IMF
• Flexibility and speed: creation of the Flexible Credit Line (FCL),
• Cheerleading: less of an adversary and more of a cheerleader to member
countries
• Adaptability: loan facilities intended to aid reform-minded governments
• Transparency: focus on improving its own transparency
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13. WORLD BANK
• The WORLD BANK is an internationally
supported bank that provides financial and
technical assistance to developing countries
for their development programs
(Infrastructure, education, poverty
reduction) with the motto of eliminating
poverty globally
• The World Bank is a component of
theWorld Bank Group, and a member of
the United Nations Development Group
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14. JIM YONG KIM
• Designation: president
• Assumed office: 1st July’12
• Born: 8th December’59 in South
Korea
• Nationality: American
• Preceded by: Robert Zoellick
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15. WORLD BANK GROUP
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INTERNATIONAL
BANK FOR
RECONSTRUCTION
AND DEVELOPMENT
INTERNATIONAL
DEVELOPMENT
ASSOCIATION
INTERNATIONAL
CENTRE FOR
SETTLEMENT OF
INVESTMENT
DISPUTES
MULTILATERAL
INVESTMENT
GUARANTEE AGENCY
INTERNATIONAL
FINANCE CORPORATION

16. OPERATIONS/ FUNCTIONS
• FUND GENERATION
• LOANS
• GRANTS
• ANALYSTICAL & ADVISORY SERVICES
• CAPACITY BUILDING
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17. AREAS OF ENGAGEMENT
• Agriculture & Rural development
• Economic policy
• Education
• Energy
• Environment
• Financial Sector
• Health, Nutrition and Population
industry
• Information, computing &
Telecommunication
• Law and Justice
• Social Protection
• Trade
• Water Resources
• Water Supply and Sanitation
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18. Challenges
• Administrative incompetence
• Rewarding or supporting inefficient or corrupt countries
• Lent more than $350 billion over a half-century
• Focus on large projects rather than local initiatives
• Negative influence on theory and practice
• Dominance of G7 countries
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19. CRITICISM
• It was started to reduce poverty but it is being
blamed for supporting United States’ business
interests
• It is deeply implicated in contemporary modes of
donor and NGO driven imperialism
• The president of the bank has always been a
citizen of The United States
• Lacks transparency to general public
• It is blamed to an instrument to promote interests
of USA & other western countries
• The decision making structure is Undemocratic
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20. NEW DEVELOPMENT BANK (NDB)
• Earlier known as BRICS DEVELOPMENT BANK
• BRICS together comprise of 2.8 bn people (40% of world population)
• BRICS nations accounts for more than 25% of world GDP
• Unlike theWorld Bank, which assigns votes based on capital share, in the
New Development Bank each participant country will be assigned one
vote, and no countries will have veto power
• NDB to be headquartered in Shanghai
• The first president will be from India, the inaugural Chairman of the Board
of directors will come from Brazil and the inaugural chairman of the
Board of Governors will be Russian
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21. NEW DEVELOPMENT BANK (NDB)
Why?
• The rising economic strength of the BRICS countries
• To challenge the US$ as the global currency
• South-South economic cooperation has expanded dramatically in recent
years
• long-standing dissatisfaction with Bretton-Woods institutions has also
pushed BRICS towards a developing-country alternative to global
development finance
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22. FINANCIAL STRUCTURE
• US$ 50 Billion (US$ 10 Bn from
each country) as initial capital-
This capital base to be used for
‘Financial Infrastructure’ &
‘Sustainable Development’
project in BRICS countries
• US$ 100 Bn; Contingency
Reserve Arrangement for
‘Liquidity Protection’ of BRICS
country during BOP problems
(41% China, 18% India, Russia,
Brazil, 5% South Africa)
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Members of BRICS nation on 15 July in Brazil

23. Opportunities & Future Outlook of World Bank
• Increased transparency: Decision making and country assessments are available
publicly. Measures taken to combat corruption
• Expanding social issues in the fight on poverty: Incorporated gender issues into its
policy in 2001. Evaluate all of its projects for their effects on women and girls
• Improvements in countries’ competitiveness and increasing exports: Example
Rawanda, world bank helped in increasing coffee exports
• Improving efficiencies in diverse industries and leveraging the private sector:
Worked with businesses in the private sector to develop local infrastructure, including
power, transportation, telecommunications, health care, and education, Example
Afghanistan
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