What are the different types of international financial institutions?
International financial institutions (IFI) are organizations that have been created by national governments from different nations. The World Bank, the International Monetary Fund (IMF) and the African Development Bank (AfDB) are all international financial institutions. Some institutions, such as the World Bank, provide lending services to nations around the world, and others focus on working with governments and humanitarian organizations in one particular area. International financial institutions are trying to support economic development and improve economic relations between nations.
The World Bank was founded in 1944 with the intention of reducing poverty around the world. As a result of World War II, the World Bank began to write loans in the war of ravaged nations, including the United States and the United Kingdom. Since its foundation, the World Bank has shifted its attention to solving poverty by providing loans to developing countries. United States is the primary international power behind the bank and nominates the President of the bank who isFrom the beginning of the organization always a citizen of the United States.
One of the most famous international financial institutions is the IMF. It was also founded in 1944 and its original purpose was to create an international currency exchange rate system. Some nations are not part of the IMF and its policy and directives have only a direct impact on members of the nations. The IMF attempts to stabilize global financial markets by encouraging Member nations to work closely and implement laws that support economic development and international trade. The Member Nations of the IMF can borrow money from the fund and during recessive periods some nations strongly rely on these loans in the fight against the dangers of economic collapse.
Afdb is an organization that was founded in 1964 by a deflection of the economic development of African nations. National governments can get cheap loans to finance projects like PROEvention of new communication systems, improved hygiene and road. Although it was founded as an African entity, the bank now allows you to join African nations. The United States, China and Japan are among the African Member States that play a role in AfDB.
among the most politically stronger international financial institutions is the European Investment Bank (EIB). EIB was created by members of the European Union (EU) in 1958. Member nations can obtain loans from EIB, but its primary goal is to provide economic support to EU political objectives. In Europe, the bank focuses primarily on supporting cohesion among members of members, but outside Europe, the bank helps to promote economic reform and energy savings.