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International Financial Institutions

International Financial Institutions. or IFI’s. Multilateral Development Banks ( MDB’s ). Are international financial institutions that focus on helping poorer and less developed countries Using a market economy based approach The two most important are The International Monetary Fund

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International Financial Institutions

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  1. International Financial Institutions or IFI’s

  2. Multilateral Development Banks (MDB’s) Are international financial institutions that focus on helping poorer and less developed countries Using a market economy based approach The two most important are • The International Monetary Fund • The World Bank Both are branches of the UN

  3. International Monetary FundIMF The IMF promotes • international monetary cooperation and exchange rate stability, • facilitates the balanced growth of international trade, • provides resources to help members in balance of payments difficulties or to assist with poverty reduction.

  4. What the IMF Does… • The IMF keeps track of the economic health of its member countries, • Tells them about alerting risks on the horizon • and providing policy advice. • It also lends to countries in difficulty, and provides technical assistance and training to help countries improve economic management.

  5. World Bank The World Bank works specifically to end poverty It… • Lends money to countries seeking to lower poverty rates • Invests in the private sector and give business advice • Settles investment and trade disputes

  6. Regional Development Banks There are many smaller similar IFI’s and MBD’s that concentrate on specific regions such as… • AfDB African Development Bank • IsBD Islamic Development Bank • CBD Caribbean Development Bank

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