International financial Institutions : International financial Institutions Types of IFIs : Types of IFIs Bretton Woods institutions
The best-known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system. They include the World Bank, the IMF, the International Finance Corporation, and other members of the World Bank Group. They are : They are International Monetary fund
International Bank for Reconstruction and Development IBRD
The International Finance Corporation IFC
The International Development Association
Multilateral Investment Guarantee Agency MIGA
International Centre for settlement of Investment Disputes ICSID Brief History : Brief History IMF at a Glance
The International Monetary Fund (IMF) came into official existence on December 27, 1945, when 29 countries signed its Articles of Agreement at a conference held in Bretton Woods, New Hampshire, USA, from July 1-22, 1944. The IMF began financial operations on March 1, 1947 IMF DISTRIBUTION : IMF DISTRIBUTION Slide 7: Current Membership: 182 countries
Staff: Approximately 2,600 from 110 countries
Managing Director: Michel Camdessus assumed office in 1987
Governing Bodies: Board of Governors, Interim Committee, Executive Board
Total Quotas: SDR 145 billion (US $195 billion)
Accounting Unit: Special Drawing Right (SDR). As of September 10, 1998, SDR 1 equaled US $1.36163. Slide 8: The Fund's legal authority is based on an international treaty called the Articles of Agreement (Articles or the Agreement) which came into force in December 1945.
The first Article in the Agreement outlines the purposes of the Fund
Although the Articles have been amended three times in the course of the last 47 years prior to 1998, the first Article has never been altered. Norwegian Delegation,Bretton Woods,July 1944 : Norwegian Delegation,Bretton Woods,July 1944 Bank and Fund headquarters , late 1940's : Bank and Fund headquarters , late 1940's US Secretary of the Treasury, Henry Morganthau, Bretton Woods, July 1944 : US Secretary of the Treasury, Henry Morganthau, Bretton Woods, July 1944 WORLD BANK : WORLD BANK The World Bank was formally established on December 27, 1945, following the ratification of the Bretton Woods agreement.
The concept was originally conceived in July 1944 at the United Nations Monetary and Financial Conference.
Two years later, the Bank issued its first loan: $250 million to France for post-war reconstruction, the main focus of the Bank's work in the early post-World War II years. Slide 13: The world Bank now plays a major role in the economic development of major countries
Acts as a finance catalyst between borrowers and lenders, advise on policy and institutional development The World Bank headquarters in Washington, D.C. 10 THINGS YOU NEVER KNEW OF WORLD BANK : 10 THINGS YOU NEVER KNEW OF WORLD BANK The World Bank...
1. is the largest external funder of education...
2. and of HIV/AIDS programs
3. is a leader in the anti-corruption effort
4. strongly supports debt relief
5. is one of the largest funders of biodiversity projects Slide 15: 6. works with partners
7. helps bring clean water, electricity and transport to the poor
8. involves civil society in every aspect of its work
9. helps countries emerging from conflict
10. is responding to the voices of poor people...more Robert B. Zoellick World Bank President. : Robert B. Zoellick World Bank President. World Bank Ranks India 10th largest economy : World Bank Ranks India 10th largest economy India is now amongst the top ten economies in the world.
According to the World Bank gross domestic product rankings for the year 2004,
India stands the tenth largest economy in the world with a GDP of $691.876 billion. Rankings for the top 20 economies in the world. : Rankings for the top 20 economies in the world. Slide 21: IN International Financial markets Foreign can both borrow and lend money
The most important financial centers are
London, new York and Japan
Other important world f centers are Switzerland
Singapore, Hong Kong Bahrain etc
These nations serve as financial centers through which foreign funds pass Slide 22: Membership in the World Bank requires membership in the IMF, and they are both specialized agencies of the United Nations.
The World Bank was given domain over long-term financing for nations in need,
while the IMF's mission was to monitor exchange rates, provide short-term financing for balance of payments adjustments, provide a forum for discussion about international monetary concerns, and give technical assistance to member countries. The International Bank for Reconstruction and Development : The International Bank for Reconstruction and Development Established 1945 184 Members
The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II.
Now, its mission has expanded to fight poverty by means of financing states
Cumulative lending: $394 billion
Fiscal 2004 lending: $11 billion for 87 new operations in 33 countries The International Development Association : The International Development Association Established September 24, 1960 165 Members
is the part of the World Bank that helps the world’s poorest countries
IDA is responsible for providing long-term, interest-free loans to the world's 80 poorest countries, 39 of which are in Africa.
Fiscal 2004 commitments: $9 billion for 158 new operations in 62 countries The Multilateral Investment Guarantee Agency : The Multilateral Investment Guarantee Agency Established 1988 165 Members
Cumulative guarantees issued: $13.5 billion (Amounts include funds leveraged through the Cooperative Underwriting Program)
Fiscal 2004 guarantees issued: $1.1 billion The International Finance Corporation : The International Finance Corporation Established 1956 176 Members
Committed portfolio: $23.5 billion (includes $5.5 billion in syndicated loans)
promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives.
Fiscal 2004 commitments: $4.8 billion for 217 projects in 65 countries ICSID The International Centre for Settlement of Investment Disputes : ICSID The International Centre for Settlement of Investment Disputes Established 1966 143 Members
Total cases registered: 159
It provides facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.
Fiscal 2004 cases registered: 30 Slide 28: Regional development banks
The regional development banks consist of several regional institutions that have functions similar to the World Bank group's activities, but with particular focus on a specific region.
Shareholders usually consist of the regional countries plus the major donor countries.
The best-known of these regional banks cover regions that roughly correspond to United Nations regional groupings, including the Inter-American Development Bank (which works in the Americas, but primarily for development in Latin America and the Caribbean); the Asian Development Bank; the African Development Bank; and the European Bank for Reconstruction and Development. Slide 29: Other regional financial institutions
Several regional groupings of countries have established international financial institutions to finance various projects or activities in areas of mutual interest. The largest and most important of these is the European Investment Bank, an institution established by the members of the European Union. Other examples include the , the International Investment Bank (established by the countries of the former Soviet Union and Eastern Europe), the Islamic Development Bank and the Nordic Investment Bank. Bilateral development banks : Bilateral development banks Bilateral development banks are financial institutions set up by individual countries to finance development projects in developing countries and emerging markets.
Examples include the Netherlands Development Finance Company FMO
And the German Development Bank DEG. Other regional financial institutions : Other regional financial institutions Several regional groupings of countries have established international financial institutions to finance various projects or activities in areas of mutual interest. The largest and most important of these is the
European Investment Bank, an institution established by the members of the European Union.
Other examples include the , the International Investment Bank (established by the countries of the former Soviet Union and Eastern Europe),
the Islamic Development Bank and the Nordic Investment Bank. Slide 32: thank you