World Bank and the International Monetary Fund - Essay Example

World Bank and the International Monetary Fund Lecturer This paper seeks to discuss the role of the World Bank and the International Monetary Fund in providing loans to countries. World Bank and International Monetary Fund are vital for the U.S citizens to lend money to people in other countries because through such organizations, developed countries like United States helps in alleviating suffering and reducing poverty levels. Through lending money to developing countries, social and economic development is also assured.

These make the value of the World Bank and International Monetary Fund. As a bank of development, World Bank supports economic and social development as well as poverty reduction. Through lending money, the bank supports the ambition of developing nations to join the European Union. This is done through Country Assistance Strategy. Work Bank provides both technical and financial assistance to the developing countries based on the assessment of the priorities of the country, creditworthiness and past portfolio performance (Sadler, 2009).

In addition, the World Bank maintains macroeconomic stability, fosters human development, promotes sustainable growth of private sector and improves business environment, and also improves governance and strengthens institutions via building inclusive and efficient public institutions.The role of International Monetary Fund in providing loans to countries is somehow similar to those of World Bank. The International Monetary Fund has a mandate to oversee international financial and monetary system as well as monitor the financial and economic policies of the member countries.

This is done through surveillance which enhances international cooperation. The International Monetary Fund also puts up lending conditions that ensure borrowing countries will repay the loan and that the nation will not solve its balance of payment in a manner to negatively affect the international economy (Sadler, 2009). Summarily, International Monetary Fund fosters economic stability and global growth, and poverty reduction through lending.ReferencesSadler, J., (2009). The role of World Bank and IMF.

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