IBRD, IMF
Bretton Woods Conference
officially United Nations Monetary and Financial Conference (July 1–22, 1944)
Meeting held at Bretton Woods, N.H., to make financial arrangements for the postwar era after the expected defeat of Germany and Japan.
Representatives of 44 countries, including the Soviet Union, agreed to create the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund. See also John Maynard Keynes.
World Bank
Specialized agency of the United Nations system, established at the Bretton Woods Conference for postwar reconstruction.
It is the principal international development institution. Its five divisions are the International Bank for Reconstruction and Development (IBRD; its main component), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Center for Settlement of Investment Disputes (ICSID). The IDA (founded 1960) makes interest-free loans to the bank's poorest member countries. The IFC (founded 1956) lends to private businesses in developing countries. The MIGA (founded 1985) supports national and private agencies that encourage foreign direct investment by offering insurance against noncommercial risks. The ICSID (founded 1966) was developed to relieve the IBRD of the burden of settling investment disputes. See also International Monetary Fund.
IMF
Specialized agency of the United Nations system.
Photograph:International Monetary Fund headquarters, Washington, D.C.
* International Monetary Fund headquarters, Washington, D.C.
It was conceived at the Bretton Woods Conference (1944) and officially founded in 1945 as a voluntary cooperative institution to help ensure the smooth international buying and selling of currency. More than 180 countries are members of the IMF. Its principal functions are stabilizing currency-exchange rates, financing the short-term balance-of-payments deficits of member countries, and providing advice and technical assistance to borrowing countries. Members contribute operating funds and receive voting rights according to their volume of international trade, national income, and international reserve holdings; the U.S. holds in excess of one-sixth of the voting rights, more than twice the percentage of any other member. The IMF has no coercive power over members, but it can refuse to lend money to members that do not agree to adhere to its policies; as a last resort it can ask members to withdraw from the organization. Critics of the IMF contend that the austerity and privatization measures it requires of borrowing countries reduce economic growth, deepen and prolong financial crises, and create severe hardships for the world's poorest people. See also International Bank for Reconstruction and Development; World Bank.
IBRD
Main component organization of the World Bank.
The IBRD lends money to middle-income and creditworthy poorer countries. Most of its funds come from sales of bonds in international capital markets. More than 180 countries are members of the IBRD. Each member's voting power is linked to its capital subscription; the U.S., with some one-sixth of the shares in the IBRD, has veto power over any proposed changes to the bank. See also International Monetary Fund; United Nations Development Programme.
Bretton Woods Conference
officially United Nations Monetary and Financial Conference (July 1–22, 1944)
Meeting held at Bretton Woods, N.H., to make financial arrangements for the postwar era after the expected defeat of Germany and Japan.
Representatives of 44 countries, including the Soviet Union, agreed to create the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund. See also John Maynard Keynes.
World Bank
Specialized agency of the United Nations system, established at the Bretton Woods Conference for postwar reconstruction.
It is the principal international development institution. Its five divisions are the International Bank for Reconstruction and Development (IBRD; its main component), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Center for Settlement of Investment Disputes (ICSID). The IDA (founded 1960) makes interest-free loans to the bank's poorest member countries. The IFC (founded 1956) lends to private businesses in developing countries. The MIGA (founded 1985) supports national and private agencies that encourage foreign direct investment by offering insurance against noncommercial risks. The ICSID (founded 1966) was developed to relieve the IBRD of the burden of settling investment disputes. See also International Monetary Fund.
IMF
Specialized agency of the United Nations system.
Photograph:International Monetary Fund headquarters, Washington, D.C.
* International Monetary Fund headquarters, Washington, D.C.
It was conceived at the Bretton Woods Conference (1944) and officially founded in 1945 as a voluntary cooperative institution to help ensure the smooth international buying and selling of currency. More than 180 countries are members of the IMF. Its principal functions are stabilizing currency-exchange rates, financing the short-term balance-of-payments deficits of member countries, and providing advice and technical assistance to borrowing countries. Members contribute operating funds and receive voting rights according to their volume of international trade, national income, and international reserve holdings; the U.S. holds in excess of one-sixth of the voting rights, more than twice the percentage of any other member. The IMF has no coercive power over members, but it can refuse to lend money to members that do not agree to adhere to its policies; as a last resort it can ask members to withdraw from the organization. Critics of the IMF contend that the austerity and privatization measures it requires of borrowing countries reduce economic growth, deepen and prolong financial crises, and create severe hardships for the world's poorest people. See also International Bank for Reconstruction and Development; World Bank.
IBRD
Main component organization of the World Bank.
The IBRD lends money to middle-income and creditworthy poorer countries. Most of its funds come from sales of bonds in international capital markets. More than 180 countries are members of the IBRD. Each member's voting power is linked to its capital subscription; the U.S., with some one-sixth of the shares in the IBRD, has veto power over any proposed changes to the bank. See also International Monetary Fund; United Nations Development Programme.
