IMF And World Bank Relations In Turkey

21 Pages 5182 Words

I. Introduction

As international institutions, International Monetary Fund (IMF) and World Bank (WB) have an important role in the world economy. Both of these institutions were created after Bretton Woods Conference in 1944. In that time, IMF was charged to maintain order in international monetary system and to help solving balance of payment problems of the member countries. The WB role was to promote economic development. The main purposes of these institutions remained unchanged but as time went their operations expanded parallel with changing needs of the member countries and the number of member countries to IMF and WB is reached 184.
Today, IMF has three main operations; surveillance, financial assistance and technical assistance. Surveillance is the most important operation for IMF and it refers “to maintain a dialogue with member countries on the national and international consequences of their economic and financial policies”. IMF also provide financial assistance to member countries “to rebuild their international reserves, stabilize their currencies and continue paying for imports without having impose trade restrictions or capital controls” and technical assistance to member countries “to contribute to the development of the productive resources of members countries by enhancing the effectiveness of economic policy and financial policy” (www.imf.org)
The World Bank’s main purpose is poverty reduction and development problem of member countries. At this context, with related to our topic the World Bank help member countries to develop their financial system (Hilbers, 2001) .
In May 1999, both IMF and the World Bank begun to collaboration in the context of the IMF’s surveillance system and the World Bank’s financial sector development work: FSAP-Financial Sector Assessment Program. The main goal of this collaboration is to use their own resources effectively, to reduce doubled work that make both...