1. Strengthening the International Monetary System, Increasing the

1.      
International Monetary Fund:

          The International Monetary Fund (IMF)
is an international organization, whose aim is to foster global monetary
cooperation, secure financial stability, facilitate international trade,
promote high employment, sustainable economic growth, and reduce poverty around
the world.

          The primary functions of IMF are
Surveillance over Members’ Economic Policies, Financing Temporary Balance of
Payments Needs, Combating Poverty in Low-Income Countries, Mobilizing External
Financing, Strengthening the International Monetary System, Increasing the
Global Supply of International Reserves, Building Capacity through Technical
Assistance and Training, Dissemination of Information and Research.

         According the first function, the
member countries agree to pursue economic policies that are consistent with the
objectives of the IMF. The Articles of Agreement confer on the IMF the legal
authority to oversee compliance by members with this obligation, making the IMF
“the only organization that has a mandate to examine on a regular basis the
economic circumstances of virtually every country in the world.”

          Regarding the second function, it
enable the IMF to lend to member countries that have a balance of payments need
to provide temporary respite and enable countries to put in place orderly
corrective measures and avoid a disorderly adjustment of the external
imbalance. Such lending is usually undertaken in the context of an economic adjustment
program implemented by the borrowing country to correct the balance of payments
difficulties, which also safeguards IMF resources. In addition, the IMF plays
an important catalytic role in helping member countries to mobilize external
financing for their balance of payments needs.

          In connection with the third
function, the IMF provides concessional loans to low-income member countries to
help support these countries’ efforts to eradicate poverty. In this venture,
the IMF works closely with the World Bank and other development partners. In
this area the IMF also plays a critical catalytic role to mobilize external
financing and donor support for the countries’ balance of payments and
development needs. The IMF also participates in two international initiatives
to provide debt relief: the Heavily Indebted Poor Countries (HIPC) Initiative
and the Multilateral Debt Relief Initiative (MDRI).

          As regards the fourth function, IMF
endorsement of a country’s policies serves as an important catalyst for
mobilizing resources from bilateral and multilateral lenders and donors. They
rely on an IMF endorsement of a country’s economic policies or might even
require a formal IMF supported economic program before committing or disbursing
their own resources to that country or granting debt relief. IMF policy
assessments and recommendations also provide important signals to investors and
financial markets regarding a country’s economic future, and impact on investor
and market confidence in the economy.

          With regard to the fifth function, the
IMF is the central institution in the international monetary system. It serves
as a forum for consultation and collaboration by members on international
monetary and financial matters, and works with other multilateral institutions
to devise international rules that would facilitate the prevention and orderly
resolution of international economic problems.

          About the sixth function, the IMF is
authorized to issue an international reserve asset called the Special Drawing Right
(SDR) if there is a global need to supplement existing reserve assets. These
allocated SDRs are part of the net international reserves of members and can be
exchanged for convertible currencies. They are not a claim on the IMF. The SDR
is also the IMF’s unit of account for all financial transactions with members.

          Relating to the seventh function,
technical assistance and training are provided in the core areas of IMF
expertise to help member countries design economic policies and improve economic
management capabilities, which in turn can help reduce the risk of policy
failures and the countries’ resilience to shocks, and facilitating program
design and implementation. These activities are particularly important in
developing countries, where resources are scarce and institutions often weak.

          The last function is that the IMF is
a premier source for economic analysis of its member countries’ economic
policies and statistical information. Information is disseminated through its
numerous economic reports and research studies on member countries, as well as
specialized statistical publications. The IMF also conducts research in areas
relevant to its mandate and operations, mainly to improve its economic analysis
and its advice to member countries. The results of this research are
disseminated through books, IMF and academic journals and working papers,
occasional papers, and the internet.

2.       The
World Bank:

        
 The World Bank is an
worldwide financial institution that gives credits to nations of the world for
capital programs. The World Bank’s objective is the decrease of destitution. Be
that as it may, all its choices must be guided by a commitment to the
advancement of foreign investment and worldwide exchange and to the help of capital
venture.

          World Bank is playing fundamental
part of giving loans for improvement works to part nations, particularly to
immature nations. The World Bank gives long-term loans for different improvement
projects of 5 to 20 a long time term.

          World Bank gives different
specialized administrations to the part nations. For this reason, the Bank has
set up “The Financial Improvement Institute” and a Staff College in Washington.
Bank can allow loans to a part nation up to 20% of its share in the paid-up
capital. The amounts of loans, interest rate and terms and conditions are decided
by the Bank itself. By and large, Bank gifts loans for a specific project
properly submitted to the Bank by the part country. The debtor country has to
reimburse either in save monetary forms or in the currency in which the loan
was sanctioned. Bank moreover gives loan to private financial specialists
having a place to part nations on its possess ensure, but for this advance
private financial specialists have to look for earlier consent from those
countries where this sum will be collected.

3.      
The Bank for International Settlements:

          The Bank for International
Settlements (BIS) is an international financial institution possessed by
central banks which “cultivates worldwide monetary  and financial cooperation and serves as a
bank for central banks”. Subsequently, it does not acknowledge deposits
from, or give financial administrations to, private people or corporate
substance