What are the Functions of IMF
IMF performs the following functions.
(i) Providing short terms credit to member countries for meeting temporary difficulties due to adverse balance of payments. (ii) Reconciling conflicting claims of member countries.
(iii) Providing a reservoir of currencies of member-countries and enabling members to borrow on another's currency. (iv) Promoting orderly adjustment of exchange rates.
(v) Advising member countries on economic, monetary and technical matters. Resources
IMF is a pool of central bank reserves and national currencies that are available to member countries under specified conditions. The capital of the IMF consists of the aggregate of the quotas allotted to the member countries member can pay its quota in its national currency. The IMF utilizes its gold holdings to acquire dollars and other currencies for its operations. Operations:
The IMF has shown great interest in the economic development of under development countries. It has made a steady progress towards the establishment of a multilateral system of payment in respect of current transactions. It has simplified the multiple exchange system. The IMF has promoted exchange rate stability and expansion of world trade. It has provided an excellent forum for the discussion and solution of economic, fiscal and financial problems having an international impact. The IMF has granted undue credit to some countries. Its insistence on devaluation in some cases proved ill advised. It has followed a week policy in the fixation of exchange rate. It has been charged as being partial to developed countries and not helping adequately the under developed countries. Asian Development Bank (ADB)
The ADB was established by Asian countries to foster the economic growth and cooperation in the region of Asia and the Far East, including the South Pacific. Asia has about 30 per cent of world population. But the pace of development is slow and inadequate to support the population. There was need for institution to mobilise additional resources and to attract investment from outside the region. ADB was set up to meet this need. It started functioning on December 19, 1996. Objectives
The objectives of the ADB are as under:
(i) To promote economic cooperation and growth in Asia and the Far East. (ii) To encourage member countries to work both collectively and individually. (iii) To promote economic growth of member countries by reducing poverty. (iv) To provide technical assistance in the planning and execution of projects of member countries. (v) To support human development activities such as education, health, nutrition, population planning, etc. (vi) To provide support for policy reforms in order to create more opportunities for the poor. What are the Functions of ADB
ADB performs the following functions:
(i) Promote investment in the region of public and private capital for development purposes. (ii) Provide loans for the economic and social development of the member countries of the region. (iii) Help member countries in coordinating their development policies and plans. (iv) Provide technical assistance for the preparation, financing and execution of development projects and programmes. (v) Undertake such other activities and provide such other services as may advance its objectives. (vi) Provide financial and technical assistance to member countries for environmental protection. (vii) Act as financial intermediary by transferring resources from global capital markets to developing countries. (viii) Support public resource mobilisation and management to member countries. Funds
ADB was set up with an authorised capital of US$ one billion which was later on raised to $21.6 billion. Japan, India, China, USA, Canada and Germany are the main subscribers. The Bank has 45 members out of which 15 are from outside the region. Management
ADB is administered by a Board of Directors which is elected by the Board of Governors. The Board...
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