TOUFIQUE KAZI -MBA -IMF &WORLD BANK

8/7/2019 TOUFIQUE KAZI -MBA -IMF &WORLD BANK

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Roll of IMF & World Bank

Toufique Kazi {37}

(Finance and marketing)


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+ORGANISATION AND PURPOSE The International Monetary Fund was created in 1944 , with a

goal to stabilize exchange rates and supervise thereconstruction of the worlds international payment system.

IMF is an organization of 185 countries. With the exception of

North Korea, Cuba, Andorra, Monaco, Tuvalu, and Nauru, all

UN member states participate directly in the IMF.

ROLL OF IMF


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SURVEILLANCEInvolves the monitoring of economic and financialdevelopments, and the provision of policy advice, aimedespecially at crisis-prevention.

LENDSThe IMF also lends to countries with balance of paymentsdifficulties, to provide temporary financing and to supportpolicies aimed at correcting the underlying problems; loans tolow-income countries are also aimed especially at povertyreduction.

TECHNICAL ASSISTANCE

The IMF provides countries with technical assistance andtraining in its areas of expertise.


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+How can the IMF help in crisis?

When a country imports more than it exports, it has a tradedeficit.

It can cause foreign exchange shortages. The internationalmonetary fund help member countries cope with foreignexchange shortages caused by balance of paymentsproblems

Dropping Exports Threaten an Indian Economy

Every year the country borrows more money from foreignbanks and friendly governments to finance a growing

volume of imports.

The value of imports now far exceeds exports. So there isntenough foreign exchange to pay the debt and buy theimports.


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+IMF Procedure to Help

Call a meeting of your cabinet ministers todiscuss the crisis

Negotiate with the labor unions & ask

them to take pay cut

Cut the electricity tax in half to make itcheaper for the plants

Devalue your currency to increase theamount of local currency that exports willsell for

Devalue Immediately Risking

your chance of defeat in next

election

Wait until after the election then

devalue the currencyor


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+WHAT IS WORLD BANK?

The World Bank Group (WBG) was established in 1944 to rebuildpost-World War II Europe under the International Bank forReconstruction and Development (IBRD).

Works as an International Organization

Fights poverty by offering developmental assistance to middleincome & low income countries

Give loans & offers advice

Training in both the private & public sectors

Aims to eliminate poverty by helping people

184 countries are shareholders in the IBRD.

To become a member a country must first join the InternationalMonetary Fund (IMF)


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+ The Food CrisisA Man-Made Problem High fuel costs

have resulted in higher agriculturecosts, falling food stocks, and land

shifted out of food production to

produce bio fuels.

The international community should

help those in danger today and ensurethe poor dont suffer this tragedy again.

The task is clear, but not simple.

World Food Programme

Fully fund the World Food Programme &emergency needs support its drive to

buy food aid locally ensure the

unhampered movement of

humanitarian assistance


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+ Safety NetsSupport safety nets, such as distributingfood in schools or offering food forwork, to quickly help those in severedistress.

Seeds and Fertilizer

Get seeds and fertilizer for the comingplanting season to farmers in poorcountries. The key is not just financing,but fast delivery systems.

Agricultural Research

Double spending on agriculturalresearch and development to $800million over the next 5 years throughthe Consultative Group on InternationalAgricultural Research.


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+ Agribusiness

Invest more in

agribusiness to tap into the private sectorability to work across the value chain.

Risk ManagementDevelopinnovative risk management tools and

crop insurance to protect poor farmersand help build food security.

BiofuelsEase subsidies, mandatesand tariffs on biofuels derived from cornand oilseeds. Policymakers shouldconsider safety valves that ease thesepolicies when prices are high.Thechoice does not have to be food or fuel.


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+ Export Ban RemoveExport bans that have led to evenhigher world prices.28 countries haveimposed such controls. Removing thesebans could have a dramatic effect.

TradeConclude the Doha WTOtrade deal to remove agriculturalsubsidies and tariffs and create a more

efficient and fair global food trade.Theneed for multilateral rules has neverbeen stronger.

Collective ActionWorktogether to counter global risks. Thechallenges of energy, food and waterwill be drivers of the world economyand security. The time to act is now.


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+THE INTERNATIONAL MONETARY FUND AND

THE WORLD BANK AT A GLANCE

IMF WORLD BANK

Seeks to promote the economic

development of the worlds

poorer countries

Draws its financial resources

principally from the quota

subscriptions of its member

countries

Acquires most of its financial

resources by borrowing on the

international bond market

Promotes exchange stabilityand orderly exchange relations

among its member countries

Provides to the poorestdeveloping countries whose per

capita GNP is less than $865 a

year special financial assistance

through the International

Development Association (IDA)


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IMF WORLD BANK

Supplements the currency

reserves of its members through

the allocation of SDRs (special

drawing rights); to date SDR 21.4

billion has been issued to

member countries in proportion

to their quotas

Encourages private enterprises

in developing countries through

its affiliate, the International

Finance Corporation (IFC)

IMF has a staff of 2,300 drawn

from 182 member countries

World Bank has a staff of 7,000

drawn from 180 membercountries

THE INTERNATIONAL MONETARY FUND AND



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IMF WORLD BANK

Assists all members--both

industrial and developing

countries--that find themselves in

temporary balance of payments

difficulties by providing short- tomedium-term credits

Assists developing countries

through long-term financing of

development projects and

programs

IMF has at its disposal fully paid-

in quotas now totaling SDR 145

billion (about $215 billion)

World Bank has an authorized

capital of $184 billion, of which

members pay in about 10 percent

THE INTERNATIONAL MONETARY FUND AND



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Thank You

Documents

TOUFIQUE KAZI -MBA -IMF &WORLD BANK