Both of them are important projects with long-term project loans for developing countries and low profits, which are affiliated organizations of the United Nations. The main role of the International Monetary Fund is to stabilize international exchange and help member countries balance their international payments by providing short-term loans.
I. International Monetary Fund
The International Monetary Fund (IMF) is an international financial organization. It was formally established on December 27th, 1945. It began to work on March 1, 1947, and became a specialized agency of the United Nations on November 15, 1947, with its own independence in operation. Headquartered in Washington. As of January 27, there are 185 members. The basic purpose and primary task of the International Monetary Fund is to stabilize the international exchange rate, eliminate foreign exchange controls that hinder world trade, promote international cooperation on monetary issues, and solve the foreign exchange fund needs of member countries with temporary balance of payments deficits by providing short-term loans.
the main business activities of the IMF include: providing loans to members, promoting international cooperation on monetary issues, studying related issues of the reform of the international monetary system, studying the expansion of the role of the IMF, providing technical assistance and strengthening ties with other international institutions. (1) to promote international monetary consultation and cooperation; ② Promote the balanced development of international trade; (3) promoting the stability of exchange rates in various countries; (4) establish a multilateral payment and exchange system for current transactions; ⑤ Facilitate financing for Member States; ⑥ Strive to reduce the imbalance of international payments among member countries.
The fund of this organization comes from the share subscribed by each member. When the fund was established, it had a capital of $8.8 billion, with the United States accounting for 27%; At present, the total amount of funds reaches 18 billion US dollars, with the United States accounting for 2% and developed countries accounting for more than 6%. Members have the right to draw, that is, to borrow foreign exchange according to a certain proportion of their paid shares. In 1969, the currency (accounting) unit of "Special Drawing Rights" was created as a supplement to international circulation means to alleviate the international income deficit of some members. Members are obliged to provide economic information and accept the supervision of the organization in foreign exchange policy and management.
The main publications are: World Economic Outlook, International Financial Statistics (monthly), Overview of International Monetary Fund (weekly), Balance of Payments Statistics (monthly) and Yearbook of Financial Statistics.
China is one of the founding countries of this organization. On April 17, 198, the organization formally restored China's representation. China's share in the organization is 3,385.2 million special drawing rights, accounting for 2.34% of the total share. China has 34,12 votes, accounting for 2.28% of the total voting rights.
II. World Bank
1. Organizational structure of the World Bank
The World Bank Group consists of five closely related institutions. These institutions are owned by their member States, and the member States have the final decision-making power on all affairs of the institutions. As explained below, each institution plays a different role in the task of helping the developing world to reduce poverty and improve living standards. The "World Bank Group" includes all five institutions. "World Bank" refers specifically to the International Bank for Reconstruction and Development and the International Development Association.
(1) The International Bank for Reconstruction and Development
was established in 1945 and has 184 member countries.
The accumulated loan amount is US$ 394 billion.
In fiscal year p>24, the loan amount was US$ 11 billion, and it was lent to 87 new projects in 33 countries.
The International Bank for Reconstruction and Development aims to provide loans, guarantees and non-loan services (including analysis) Maximizing profits is not its goal, but since 1948, IBRD has made net income every year. Its profits can raise funds for some development activities and ensure its financial strength, so it can raise funds at a lower cost in the international capital market and win good loan conditions for its borrowers. IBRD is owned by member countries, and its voting rights are related to the capital subscription of member countries, but ultimately based on the relative economic strength of member countries.
(2) The International Development Association
was established in 196, with 165 member countries.
The accumulated loan amount was $151 billion.
In fiscal year p>24, the loan amount was $9 billion, and it was loaned to 158 new projects in 62 countries.
The donation to the International Development Association enabled the World Bank to provide loans to the poorest people in the world with a population of 2.5 billion every year. This kind of assistance is crucial, because these countries have little or no ability to borrow funds on market conditions. Most of these countries live on less than $2 a day per capita. The International Development Association helps to provide these countries with better basic services (such as education, medical care, clean water and sanitation facilities), and helps to carry out reforms and investments to promote productivity and create jobs.
(3) IFC
was established in 1956, with 176 member countries.
The commitment portfolio: US$ 23.5 billion (including US$ 5.5 billion in syndicated loans)
The commitment in fiscal year p>24: US$ 4.8 billion, which was loaned to 217 projects in 65 countries.
The purpose of IFC is to further through the private sector. Through cooperation with business partners, IFC invests in sustainable private enterprises in developing countries, provides long-term loans, guarantees and risk management, and provides consulting services to its customers. International finance companies invest in areas and sectors where private investment is insufficient, and seek new ways to develop promising opportunities in some markets. Without the participation of international finance companies, commercial investors will think that the risks in these markets are too high.
(4) The Multilateral Investment Guarantee Agency
was established in 1988, with 164 member countries.
The accumulated guarantee amount is $13.5 billion (including the leveraged guarantee amount provided through the cooperative underwriting plan)
The guarantee amount in fiscal year p>24 is $1.1 billion
By providing guarantees to foreign investors, the Multilateral Investment Guarantee Agency protects them from non-commercial risks such as expropriation. In addition, MIGA provides technical assistance to help countries disseminate information about their investment opportunities. The agency also provides investment dispute mediation upon request.
(5) ICSID was established in 1966, with 14 member countries
Total number of registered cases: 159
Cases registered in fiscal year 24: 3
ICSID encourages foreign investment by providing international mediation and arbitration for investment disputes, so as to enhance mutual trust between countries and foreign investors. Many international investment agreements cite the arbitration clause of the Center. The center also conducts research and publishing activities in the fields of arbitration law and foreign investment law.
2. The role of the World Bank
The World Bank is one of the largest development aid agencies in the world. The World Bank uses its capital, high-quality talents and extensive knowledge base to help developing countries take a stable, sustainable and balanced development path. The World Bank mainly focuses on helping the poorest people and the poorest countries, while for all World Bank borrowing countries, the World Bank emphasizes the following needs:
* Investing in people, especially by providing basic health and education services;
* protect the environment;
* support and encourage the development of private enterprises;
* Strengthen the capacity of * * *, improve efficiency and transparency, and provide high-quality services;
* Promote reform and create a stable macroeconomic environment conducive to investment and long-term planning;
* Focus on social development, participation, good governance and institution-building as key elements for poverty reduction.
the purpose of the world bank: ① to facilitate productive investment and assist member countries in development; (2) promoting private foreign investment by means of guarantee or participation; ③ Encourage the development of production resources and promote the balanced development of international trade; Cooperate with other international lending institutions to provide loan guarantees.
The World Bank also helps countries around the world to consolidate and strengthen the basic conditions needed to attract and maintain private investment. With the help of the World Bank's funds and consulting services, countries have carried out comprehensive economic reforms, strengthened their banking systems, and invested in human resources, infrastructure and environmental protection, thus enhancing the attractiveness and efficiency of private investment. Through the financing guarantee of the World Bank and the political risk guarantee of multilateral investment guarantee institutions, combined with the equity investment of the International Finance Corporation, investors can minimize the risk of investing in developing countries and countries with economies in transition and feel more at ease.
III. Similarities and differences between the World Bank and the International Monetary Fund
(1) According to the decision of the Bretton Woods Conference in July 1944, the World Bank (International Bank for Reconstruction and Development) and the International Monetary Fund were established at the same time on December 27th, 1945. Headquartered in Washington. Both institutions belong to specialized agencies under the United Nations.
(2) The World Bank and the International Monetary Fund complement each other. The main business of the World Bank is to provide long-term project loans to developing countries to help them build some important projects with long construction period and low profit rate. The main activity of the International Monetary Fund is to stabilize international exchange, and to help its members balance their international payments by providing short-term loans.
(3) Since 198, China's legal seats in the World Bank and the International Monetary Fund have been restored.
(4) On February 4th, 28, Washington time, the World Bank officially announced that Professor Lin Yifu, director of China Center for Economic Research of Peking University, was appointed as the executive vice president and chief economist of the World Bank, as the spokesman of the World Bank, the chief economic adviser of the President, and was in charge of the World Bank's research work, promoting Africa's development and South-South experience exchange.