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Nguyen Thi Kim Chau ² 1001587

Nguyen Thi Xuan Quynh ² 1001584

Nguyen Hoang Linh ² 100

DoTran Hanh Uyen - 1001570

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AGEND

AAGEND

A

     Overview

     Differences

     Criticisms

     Conclusion

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IMFIMF-- International Monetary FundInternational Monetary Fund

     Formed on July 22, 1944 in U.S

     Headquarter in Washington D.C

     Enforce the global economic

     Provide policy and financial assistance

     Board of Governors ² main organ

     Managing Director - Chairman of the Executive Board

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WBWB ²  ² World Bank World Bank 

     A twin of IMF

     Headquarter in Washington D.C

     Poverty reduction

     Provide financial and technical assistance

     

Board of G

overnors - main organ

     The President ² chairman of executive directors

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IMF and WB·s membershipIMF and WB·s membership

     Same 187 members

     Dominating members: U.S, France, U.K , Japan and

Germany

     First requirement for eligible WB member is being

IMF member

     Why?

     Avoiding free ridership, abusiveness of member right

     Complement each other

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DIFFERENCESDIFFERENCES

Purpose

Structure

Funding

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PurposePurpose

  Reconstruct Western

European economies in

World War I time.

Assist poor nations.

  Maintain monetary policyand balance of exchangevalue.

An enemy of surprise. International prosperityimprove the quality of 

life.

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StructureStructure

  Complex ² 7000 staffs.

2 majors org: IBRD, IDA andsubsidiaries.

Wide range: eco, law, engine

and telecom, education,energy, etc.

40 offices throughout theworld.

  Small size ² 2300 staffs.

No affiliates orsubsidiaries.

Expertise: economists,financial experts.

Headquarter: WashingtonD.C.

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FundingFunding

Resources

of funding

Investment bank  borrow and

lend.

IBRD: market borrowing from

>100 countries.

IDA: donor nations.

A pool of moneymembership

fees.

Members:

contribute based on ecos size

& strength.

all have the access.

Recipients

of funding

Creditworthy developingcountries.

IBRD:

GDP > $1305

12-15 years ²  higher

IDA:

GDP < $1305 35-40 years ²  free

All member nations.3-5 years ² no longer than 10

years.

slightly lower than market rate.

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CRITICISMSCRITICISMS

     ́Conditionalitiesµ imposed

unable to repay and

have to take out new loans

     Structural Adjustment Policies (SAPs) Privatization

Devaluation of currency

Higher interest rates

Trade liberalization

´User feesµ for government-provided services

     Water privatization, environmental effects

on developing/ poor countries

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CONCLUSIONCONCLUSION

y Twins intergovernmental organizations

y Differences:

Goal

Structure

Funding

y Criticisms

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