International currency and financial institutions – International Monetary Found, The World Bank MPA, 11 th group Katarína Ilavská 2007/2008 Alena Reguliová

International Financial Institutions  The World Bank and the International Monetary Fund were created in the aftermath of World War II to direct investments to the neediest countries of the world (the Bank) and to ensure international monetary cooperation (the Fund).

The International Monetary Fund (IMF) is an international organization with a current membership of 184 countries. is an international organization with a current membership of 184 countries. conceived at the 1944 Bretton Woods conference, the IMF’s core mission is to foster economic growth and increased international trade by supporting international monetary cooperation, exchange rate stability, and temporary financial assistance to countries facing balance of payments difficulties. conceived at the 1944 Bretton Woods conference, the IMF’s core mission is to foster economic growth and increased international trade by supporting international monetary cooperation, exchange rate stability, and temporary financial assistance to countries facing balance of payments difficulties. It has its headquarters in Washington, D.C., USA. It has its headquarters in Washington, D.C., USA.

IMF operations and responsibilities can be grouped into three areas: surveillance, surveillance, lending, lending, technical assistance. technical assistance. o Surveillance involves monitoring economic and financial developments and providing policy advice to member countries. financial developments and providing policy advice to member countries. o Lending entails the provision of financial resources under specified conditions to assist a country experiencing balance of payments difficulties. o Technical assistance includes help on designing or improving the quality and effectiveness of domestic policy-making.

The amount of money that each IMF member country is required to contribute to the institution, partly in their own currency and partly in U.S. dollars, gold, or other member-country currencies. A country's quota is based upon the country's GDP. Countries have voting power in the IMF in proportion to their IMF quotas. The amount of money that each IMF member country is required to contribute to the institution, partly in their own currency and partly in U.S. dollars, gold, or other member-country currencies. A country's quota is based upon the country's GDP. Countries have voting power in the IMF in proportion to their IMF quotas.

Authorities of IMF Board of Governors Board of Governors International Monetary and Financial Committee – IMFC International Monetary and Financial Committee – IMFC Executive Board Executive Board Managing Director Managing Director

Board of Governors Board of Governors The hishest control organ of the IMF, in which all countries vote governor. International Monetary and Financial Committee – IMFC International Monetary and Financial Committee – IMFC Comprised of 24 finance ministers but representing all 184 member countries, which meets during the Spring Meetings.

Executive Board Executive Board consists of 24 Executive Directors, USA, Japan, Germany, France, China, Russia and Saudi Arabia represent one executive director. The remaining 16 directors represent constituencies. consists of 24 Executive Directors, USA, Japan, Germany, France, China, Russia and Saudi Arabia represent one executive director. The remaining 16 directors represent constituencies.

Mr. Dominique Strauss Kahn became the tenth Managing Director of the IMF in october Currancy- Special Drawing Rights Artificial currancy element, it is used as international rest asset. Artificial currancy element, it is used as international rest asset.

An unwritten rule establishes that the IMF's managing director must be European and that the president of the World Bank must be from the United States. World BankUnited StatesWorld BankUnited States

World Bank  is an internationally supported bank that provides loans to developing countries for development programs with the stated goal of reducing poverty  is one of the three Bretton Woods Institutions which were created in 1944 to rebuild the destroyed Europe after World War II.  was formally established on December 27, 1945.

 The World Bank is like a cooperative, where its 185 member countries are shareholders.  The shareholders are represented by a Board of Governors, who are the ultimate policy makers at the World Bank.  The governors are member countries' ministers of finance or ministers of development.  meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. The President of the World Bank  Robert B. Zoellick, chairs meetings of the Boards of Directors and is responsible for overall management of the Bank.  The Bank president is a U.S. national and is nominated by the United States, the Bank's largest shareholder.  is elected by the Board of Governors for a five-year, renewable term.

List of World Bank members  In addition to the International Bank for Reconstruction and Development and the International Development Association, three other institutions are closely associated with the World Bank: The International Finance Corporation (IFC), The International Finance Corporation (IFC), The Multilateral Investment Guarantee Agency (MIGA), The Multilateral Investment Guarantee Agency (MIGA), The International Centre for Settlement of Investment Disputes (ICSID). The International Centre for Settlement of Investment Disputes (ICSID). Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank (such as IDA).

The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services established in 1944 as the original institution of the World Bank Group established in 1944 as the original institution of the World Bank Group  IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in  the income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients good borrowing terms.

The International Development Association (IDA)  is the part of the World Bank that helps the world’s poorest countries  established in 1960,  aims to reduce poverty by providing interest-free credits and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions  IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards.  IDA is one of the largest sources of assistance for the world’s 80 poorest countries, 39 of which are in Africa.  it is the single largest source of donor funds for basic social services in the poorest countries  lends money (known as credits) on concessional terms  provides grants to countries at risk of debt distress

The International Finance Corporation (IFC) provides loans, equity, structured finance and risk management products, and advisory services to build the private sector in developing countries. the creation of IFC in 1956 represented the first step by the global community to foster private sector investment in developing nations 179 member countries, which collectively determine its policies and approve investments.

The International Centre for Settlement of Investment Disputes (ICSID) is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States with 140 member States. is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States with 140 member States. The Convention sets forth ICSID's mandate, organization and core functions. The Convention sets forth ICSID's mandate, organization and core functions. provide facilities for conciliation and arbitration of international investment disputes. provide facilities for conciliation and arbitration of international investment disputes. plays an important role in the field of international investment and economic development. plays an important role in the field of international investment and economic development. is considered to be the leading international arbitration institution devoted to investor-State dispute settlement. is considered to be the leading international arbitration institution devoted to investor-State dispute settlement.

The Multilateral Investment Guarantee Agency (MIGA) provides non-commercial guarantees (insurance) for investments made in developing countries. provides non-commercial guarantees (insurance) for investments made in developing countries. helps investors and lenders deal with risks by insuring eligible projects against losses relating to: helps investors and lenders deal with risks by insuring eligible projects against losses relating to:  Currency transfer restrictions  Expropriation  War and civil disturbance  Breach of contract

The World Bank is active in the following areas: Agriculture and Rural Development Agriculture and Rural Development Conflict and Development Conflict and Development Development Operations and Activities Development Operations and Activities Economic Policy Economic Policy Education Education Energy Energy Environment Environment Financial Secto Financial Secto Governance Governance Health, Nutrition and Population Health, Nutrition and Population Industry Industry Information and Communication Technologies Information and Communication Technologies International Economics and Trade International Economics and Trade Labor and Social Protections Labor and Social Protections Law and Justice Law and Justice International Economics and Trade International Economics and Trade Labor and Social Protections Labor and Social Protections Macroeconomic and Economic Growth Macroeconomic and Economic Growth Mining Mining Poverty Reduction Poverty Reduction Poverty Poverty Private Sector Private Sector Public Sector Governance Public Sector Governance Social Development Social Development Social Protection Social Protection Trade Trade Transport Transport Urban Development Urban Development Water Resources Water Resources Water Supply and Sanitation.... Water Supply and Sanitation....

Thank you for your attention Thank you for your attention