IMF vs World Bank – The Comparison! 🆚
They are both in Washington D.C. They are both "Bretton Woods Twins". But they are very different.
Comparison Table 📊
| Feature | IMF (International Monetary Fund) | World Bank (IBRD) |
|---|---|---|
| Focus | Monetary Stability (Money) | Economic Development (Growth) |
| Primary Goal | Fix Balance of Payments Crisis | Reduce Poverty & Build Infrastructure |
| Time Horizon | Short to Medium Term | Long Term (15-30 years) |
| Analogy | Firefighter 🚒 | Architect 🏗️ |
| Staff | Economists | Engineers, Urban Planners, Economists |
| Conditionality | Strict (Cut spending, raise tax) | Project-based (Build the dam properly) |
The Relationship Diagram 🔄
Country in Trouble"Needs Help"
↓
IMF Steps InFor Macro Stability"Fixes Currency, Inflation, BOP"
↓
World Bank Steps InFor Micro Projects"Builds Schools, Power Plants"
Do they work together?
Yes! Usually, a country needs both. If the economy is unstable (High Inflation), World Bank projects will fail. So, IMF fixes the economy first, then World Bank builds the projects.
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Which institution focuses on Balance of Payments crisis?
💡 Final Wisdom: "IMF saves the patient from a heart attack. World Bank prescribes the gym and diet for a long healthy life." 🏥💪
Next up: New Development Bank (NDB) - The Challenger from the East! 🌏