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The International Monetary Fund (IMF), the World Bank and the World Trade
Organization (WTO) are highlighted in the financial press or on television
nearly every day. From loans to Greece to trade deals in Asia, these
organizations make headlines across the globe. Understanding these entities
and their missions will provide greater insight into how these organizations
help to shape the global economy.
IMF Mission
The IMF advances its mission in a variety of ways. Monitoring and reporting
on economic developments is a large part of the effort, including making
recommendations to member countries on future courses of action. For
example, in 2015, the IMF reviewed the health of the U.S. economy and
recommended that the U.S. Federal Reserve hold off on its plans to increase
interest rates because it might harm the economy. Although the IMF's
recommendations are not legally binding, they are made public. Economic
policy makers are certainly aware of them and are undoubtedly influenced by
them.
Lending money to poor countries is also a major initiative at the IMF. The
organization provides financing to help troubled nations avoid or recover from
economic challenges. The IMF has made significant loans to Portugal,
Greece, Ireland, Ukraine, Mexico, Poland, Columbia and Morocco, among
others. All of the IMF’s initiatives are self-funded by its members. The
organization’s headquarters is in Washington, D.C. (For more
information, read: An Introduction To The International Monetary Fund.)
The World Bank
The World Bank Group, like the IMF, was created at Bretton Woods in 1944.
Its goal is to provide “financial and technical assistance to developing
countries around the world” in an effort to “reduce poverty and support
development.” It consists of five underlying institutions, the first two of
which are collectively referred to as The World Bank.
The World Bank’s efforts include providing advice and guidance in addition to
working closely with the International Monetary Fund. The group is self-funded
and has its home office in Washington, D.C. (For related reading, see: The
World Bank's All-Important World Development Indicators (WDI).)