An Assignment On: Short Notes

An Assignment
On
Short Notes
Course Title: International Financial Management
Submitted To
Mr. Md. Shamsuddin Ahmed Farhad
Lecturer
School Of Business Administration
Metropolitan University Sylhet
Prepared By
Syed Farhad Ahmed
MBA 24th Batch
ID: 091-126-037
Metropolitan University Sylhet
Date of Submission: 25/04/2013
World Bank Group

The
World
Bank
Group
(WBG)
is
family
of
five
international
organizations that make leveraged loans to poor countries. It is the

largest and most famous development bank in the world and is an
observer at the United Nations Development Group. The bank is based in
Washington, D.C. and provided around $30 billion in loans and assistance
to "developing" and transition countries in 2012. The bank's mission is to
reduce poverty.
The World Bank's (the IBRD and IDA's) activities are focused on
developing countries, in fields such as human development (e.g.
education, health), agriculture and rural development (e.g. irrigation,
rural
services),
environmental
protection
(e.g.
pollution
reduction,
establishing and enforcing regulations), infrastructure (e.g. roads, urban

regeneration, electricity), large industrial construction projects, and
governance (e.g. anti-corruption, legal institutions development). The
IBRD and IDA provide loans at preferential rates to member countries, as
well as grants to the poorest countries. Loans or grants for specific
projects are often linked to wider policy changes in the sector or the
country's economy as a whole. For example, a loan to improve coastal
environmental management may be linked to development of new
environmental
institutions
at
national
and
local
levels
and
the
implementation of new regulations to limit pollution, or not, such as in the

World Bank financed constructions of paper mills along the Rio Uruguay in
2006.
The World Bank has received various criticisms over the years and was
tarnished by a scandal with the bank's then President Paul Wolfowitz and
his aid, Shaha Riza in 2007.
International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an organization of 188
countries, working to foster global monetary cooperation, secure financial
stability, facilitate international trade, promote high employment and
sustainable economic growth, and reduce poverty around the world.
With its near-global membership of 188 countries, the IMF is uniquely
placed
to
help
member
governments
take
advantage
of
the
opportunitiesand manage the challengesposed by globalization and

economic development more generally. The IMF tracks global economic
trends and performance, alerts its member countries when it sees
problems on the horizon, provides a forum for policy dialogue, and passes
on know-how to governments on how to tackle economic difficulties.
The IMF provides policy advice and financing to members in economic
difficulties and also works with developing nations to help them achieve
macroeconomic stability and reduce poverty.
Marked by massive movements of capital and abrupt shifts in comparative
advantage, globalization affects countries' policy choices in many areas,
including labor, trade, and tax policies. Helping a country benefit from
globalization while avoiding potential downsides is an important task for
the
IMF.
The
global
economic
crisis
has
highlighted
just
how
interconnected countries have become in todays world economy.

Key IMF activities:
The IMF supports its membership by providing
policy advice to governments and central banks based on analysis

of economic trends and cross-country experiences;
research, statistics, forecasts, and analysis based on tracking of

global, regional, and individual economies and markets;
loans to help countries overcome economic difficulties;
concessional loans to help fight poverty in developing countries; and
Technical assistance and training to help countries improve the

management of their economies.
Original aims:
The IMF was founded more than 60 years ago toward the end of World
War II.
The founders aimed to build a framework for economic
cooperation that would avoid a repetition of the disastrous economic

policies that had contributed to the Great Depression of the 1930s and
the global conflict that followed.
Since then the world has changed dramatically, bringing extensive
prosperity and lifting millions out of poverty, especially in Asia. In many
ways the IMF's main purposeto provide the global public good of
financial stabilityis the same today as it was when the organization was
established. More specifically, the IMF continues to
provide a forum for cooperation on international monetary problems
facilitate the growth of international trade, thus promoting job

creation, economic growth, and poverty reduction;
promote exchange rate stability and an open system of international

payments; and
Lend countries foreign exchange when needed, on a temporary

basis and under adequate safeguards, to help them address balance
of payments problems.
An adapting IMF:
The IMF has evolved along with the global economy throughout its 65year history, allowing the organization to retain its central role within the
international financial architecture
As the world economy struggles to restore growth and jobs after the
worst crisis since the Great Depression, the IMF has emerged as a very
different institution. During the crisis, it mobilized on many fronts to
support its member countries. It increased its lending, used its crosscountry experience to advice on policy solutions, supported global policy
coordination, and reformed the way it makes decisions. The result is an
institution that is more in tune with the needs of its 188 member
countries.
Stepping up crisis lending: The IMF responded quickly to the

global economic crisis, with lending commitments reaching a record
level of more than US$250 billion in 2010. This figure includes a
sharp increase in concessional lending (thats to say, subsidized
lending at rates below those being charged by the market) to the
worlds poorest nations.
Greater lending flexibility: The IMF has overhauled its lending

framework to make it better suited to countries individual needs. It
is also working with other regional institutions to create a broader
financial safety net, which could help prevent new crises.
Providing analysis and advice: The IMFs monitoring, forecasts,

and policy advice, informed by a global perspective and by
experience from previous crises, have been in high demand and
have been used by the G-20.
Drawing lessons from the crisis: The IMF is contributing to the

ongoing effort to draw lessons from the crisis for policy, regulation,
and reform of the global financial architecture.
Historic reform of governance: The IMFs member countries also

agreed to a significant increase in the voice of dynamic emerging
and developing economies in the decision making of the institution,
while preserving the voice of the low-income members.
Asian Development Bank (ADB)

The Asian Development Bank aims for an Asia and Pacific free from
poverty. Approximately 1.7 billion people in the region are poor and
unable to access essential goods, services, assets and opportunities to
which every human is entitled.
Since its founding in 1966, ADB has been driven by an inspiration and
dedication to improving peoples lives in Asia and the Pacific. By targeting
our investments wisely, in partnership with our developing member
countries and other stakeholders, we can alleviate poverty and help
create a world in which everyone can share in the benefits of sustained
and inclusive growth.
Whether it be through investment in infrastructure, health care services,
financial and public administration systems, or helping nations prepare for
the impact of climate change or better manage their natural resources,
ADB is committed to helping developing member countries evolve into
thriving, modern economies that are well integrated with each other and
the world.
The main devices for assistance are loans, grants, policy dialogue,
technical assistance and equity investments.
We are at the forefront of development thinking and practice, spreading
information through regional forums, a growing online presence and the
publication of specialized papers, serials and books.
Economists, sociologists, engineers, gender experts and environmental
scientists are amongst the hundreds of professions at the bank working
together to reduce poverty, and ensure growth across the Asia and Pacific
region is sustainable and inclusive.
Islamic Development Bank (IDB)
Establishment
The Islamic Development Bank is an international financial institution
established in pursuance of the Declaration of Intent issued by the
Conference of Finance Ministers of Muslim Countries held in Jeddah in
Dhul Q'adah 1393H, corresponding to December 1973. The Inaugural
Meeting of the Board of Governors took place in Rajab 1395H,
corresponding to July 1975, and the Bank was formally opened on 15
Shawwal 1395H corresponding to 20 October 1975.
Purpose
The purpose of the Bank is to foster the economic development and social
progress of member countries and Muslim communities individually as
well as jointly in accordance with the principles of Shari'ah i.e., Islamic
Law.
Functions
The functions of the Bank are to participate in equity capital and grant
loans for productive projects and enterprises besides providing financial
assistance to member countries in other forms for economic and social
development. The Bank is also required to establish and operate special
funds for specific purposes including a fund for assistance to Muslim
communities in non-member countries, in addition to setting up trust
funds. The Bank is authorized to accept deposits and to mobilize financial
resources through Shari'ah compatible modes. It is also charged with the
responsibility of assisting in the promotion of foreign trade especially in
capital goods, among member countries; providing technical assistance to
member countries; and extending training facilities for personnel engaged
in development activities in Muslim countries to conform to the Shari'ah.
Membership
The present membership of the Bank consists of 56 countries. The basic
condition for membership is that the prospective member country should
be a member of the Organisation of Islamic Cooperation (OIC), pay its
contribution to the capital of the Bank and be willing to accept such terms
and conditions as may be decided upon by the IDB Board of Governors.
Capital
Up to the end of 1412H (June 1992), the authorized capital of the Bank
was two billion Islamic Dinars (ID) {A unit of account of IDB which is
equivalent to one Special Drawing Right (SDR) of the International
Monetary Fund (IMF)}. Since Muharram 1413H (July 1992), in accordance
with a Resolution of the Board of Governors, it became six billion Islamic
Dinars, divided into 600,000 shares having a par value of 10,000 Islamic
Dinars (ID) each. Its subscribed capital also became four billion Islamic
Dinars payable according to specific schedules and in freely convertible
currency acceptable to the Bank. In 1422H, the board of governors at its
annual meeting held in Algeria decided to increase the authorized capital
of the Bank form ID 6 billion to ID 15 billion and the subscribed capital
from ID 4.1 billion to ID 8.1 billion. According to the Directive of the Third
Extra-Ordinary Session of the OIC Islamic Summit Conference held in
Makkah Al-Mukarramah on 7- 8 December 2005, calling for a substantial
increase in the capital stock of IDB in order to enable it to strengthen its
role in providing financial support and technical assistance to its member
countries, the Board of Governors of the IDB in its 31st Annual Meeting in
Kuwait decided to increase the authorized capital stock of IDB by 15
billion Islamic Dinars to become 30 billion Islamic Dinars and the
subscribed capital by 6.9 billion Islamic Dinars to become 15 billion

Islamic Dinars.
Head Office and Regional Offices

The Bank's principal office is in Jeddah in the Kingdom of Saudi Arabia.
Four regional offices were opened in Rabat, Morocco (1994), Kuala
Lumpur, Malaysia (1994). Almaty, Kazakhstan (1997), and Dakar,
Senegal (2008). The Bank also has field representatives in twelve
member countries. These are: Afghanistan, Azerbaijan, Bangladesh,
Guinea Conakry, Indonesia, Iran, Nigeria, Pakistan, Sierra Leone, Sudan,
Uzbekistan and Yemen.
Financial Year
The Bank's financial year is the lunar Hijra Year.
Language
The official language of the Bank is Arabic, but English and French are
additionally used as working languages.

An Assignment On: Short Notes

Uploaded by

Copyright:

Available Formats

An Assignment On: Short Notes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

An Assignment On: Short Notes

Uploaded by

Copyright:

Available Formats

An Assignment

Course Title: International Financial Management

World Bank Group

organizations that make leveraged loans to poor countries. It is the

establishing and enforcing regulations), infrastructure (e.g. roads, urban

implementation of new regulations to limit pollution, or not, such as in the

International Monetary Fund (IMF)

opportunitiesand manage the challengesposed by globalization and

interconnected countries have become in todays world economy.

policy advice to governments and central banks based on analysis

research, statistics, forecasts, and analysis based on tracking of

loans to help countries overcome economic difficulties;

concessional loans to help fight poverty in developing countries; and

Technical assistance and training to help countries improve the

The founders aimed to build a framework for economic

cooperation that would avoid a repetition of the disastrous economic

provide a forum for cooperation on international monetary problems

facilitate the growth of international trade, thus promoting job

promote exchange rate stability and an open system of international

Lend countries foreign exchange when needed, on a temporary

Stepping up crisis lending: The IMF responded quickly to the

Greater lending flexibility: The IMF has overhauled its lending

Providing analysis and advice: The IMFs monitoring, forecasts,

Drawing lessons from the crisis: The IMF is contributing to the

Historic reform of governance: The IMFs member countries also

Asian Development Bank (ADB)

Islamic Development Bank (IDB)

subscribed capital by 6.9 billion Islamic Dinars to become 15 billion

Head Office and Regional Offices

You might also like