POLS 2080 Chapter Notes - Chapter 9: Capital Account, Good Governance, Judicial Independence
22 Dec 2016
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Document Summary
The formation of the imf and world bank dates to the bretton woods conference held in 1944. The forefront of their concerns was the creation of an international economic system to promote trade an provide rules for economic relations between countries. Imf initial function: to provide financial resources to allow countries to solve balance of payments crises without devaluing their currencies. This would help maintain the system of stable exchange rates established at bretton woods: world bank initial function: provide financing for post-war reconstructive projects. From 1950 onwards, the bank focused on providing funds to lower income countries at lower interests than other private international banks. These loans were mainly for building infrastructure for development. The international development association (ida) was formed in 1960 as a part of the world bank. Ida loans were used for large-scale infrastructure projects and these loans were provided at a virtually interest free status.
