The fund is an autonomous organization affiliated to United Nations Organisation. Starting from the initial membership of 31 countries at the time of inception, the Fund has a membership of 186 countries. It is financed by various participating countries with each country’s contribution fixed in terms of quotas according to the relative importance of the national income prevalent in the country and international trade.
The total financial resources of the fund is equal to the quotas of all the countries combined together. The contributed quota of a country determines its borrowing rights and voting strength.
The following are the functions of International Monetary Fund: 1.Monitoring economic and financial developments of its members; 2.Providing machinery for international consultations;
3.Providing machinery for altering sometimes the par value of currency of a member country; 4.Functioning as a short term credit institution;
5.Lending institution in terms of foreign exchange;
6.Providing machinery for the orderly adjustment of exchange rates and 7.Functioning as a reservoir of the currencies of all the member nations who can borrow the currency of other nations. 8.Granting loans for financing current transactions other than capital transactions;
The International Bank of Reconstruction and Devlopment popularly known as the World Bank was formed as a part of the deliberations at Brettonwoods during 1945. It was floated in order to give loan to member countries initially for the reconstruction of their war ravaged economies and later for the development of the economies of the poorer member countries.
The World Bank provides its member countries long term investment loan on reasonable terms. World Bank has granted many loans for financing specific projects. During the recent years, it has also been engaged in giving structural adjustment loans to the heavily indebted countries.
The World Bank is an inter governmental institution, corporate in form whose capital stock is entirely owned by its member governments. The World Bank group consists of the following: •World Bank;
•International Development Association;
•Inernational Finance Corporation;
•Multilateral Investment Guarantee Agency
•International centre for settlement of Investment disputes.
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