World Bank and International Monetary Fund

Differences and Similarities

FeatureWorld BankInternational Monetary Fund
FoundedJuly 1944December 1945
Headed byPresidentManaging Director
First President/MDEugene MeyerCamille Gutt
HeadquartersWashington D.C.Washington D.C.
ConstituentsIBRD & IDASingle body
Central purposeTo promote economic and social progress in developing countries by helping to raise productivity so that their people may live a better and fuller life.To oversee a monetary system that will encourage trade, create jobs, expand economic activity, and raise living standards throughout the world.
Regular reports publishedWorld Development ReportWorld Economic Outlook
Source of fundingBorrowing through issue of bonds, grants from donor nations.A pool of resources to which each member nation contributes a certain amount of money proportionate to its economic size and strength.
Recipients of fundingIBRD – Developing nations – Slightly higher interest rate than borrowing rate and repaying time of 12 to 15 years
IDA – Very poor developing nations, interest free with a repaying time of 35 to 40 years.
All nations rich or poor to rectify the problem of balance of payments. Interest rates are slightly below market rates and amount must normally be repaid within three to five years, and in no case later than ten years.

Important facts related to World Bank and IMF

The World Bank and the International Monetary Fund were set up during the United Nations Monetary and Financial Conference of 43 countries in Bretton Woods, New Hampshire, USA in July 1944.
They are collectively known as Bretton Woods institutions
The World Bank consists of International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA)
The World Bank Group consists of FIVE institutions namely, International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA), International Centre for Settlement of Investment Disputes (ICSID) and Multilateral Investment Guarantee Agency (MIGA).
The President of the World Bank Group is chosen by the President of United States of America.
The World Bank is an investment bank, borrowing from the one and lending to the other, while the IMF is a type of credit union whose members have access to a common pool of resources to which each member nation contributes a certain amount of money proportionate to its economic size and strength.