1. The current relationship between <br />IMF and India <br />IMF and India <br />The relationship between the IMF <br />and India has grown strong overthe years. In fact, the country hasturned into a creditor to the IMFand has stopped taking loansfrom it.<br />The World Bank <br />Established in 1944 <br />The World Bank is the world's largest source <br />of development assistance. <br />It provides nearly $16 billion in loans <br />annually to its client countries for socialdevelopment, institution-building,environmental protection, private businessdevelopment, stable macroeconomicenvironment, and poverty reduction.<br />The Washington, D.C.-based Bank is owned <br />by its 185 member countries, and has 67 <br />country offices around the world. <br />Headed by Robert.B.Zoellick who is <br />the president. <br />World Bank comprises two institutions: <br />-International Bank For Reconstruction <br />and Development (IBRD) <br />-International Development <br />Association (IDA) <br />Issued its first loan of US$250 million <br />to France for post-war reconstruction. <br />The bank obtains its funding through <br />the IBRD’s sale of AAA-rated bonds in <br />world financial markets<br />Issues two types of loans: <br />Investment loans- support for <br />economic and social development <br />projects <br />Development policy loans- support <br />policy and institutional reforms <br />Grants- given by IDA. <br />Other services include analytical, <br />advisory and educational services. <br /> Current focus is onMillennium <br />Development Goals(MDGs). <br />World Bank cont. <br />World Bank cont. <br />Poverty Reduction strategies <br />include collaboration with poorpeople’s organizations such as SlumDwellers International and obtainingaid through IDA.<br />World Bank is temporarily managing <br />Clean Technology Fundwhich <br />focuses on developing renewable <br />energy sources. <br />World Bank Institute looks after <br />training of staff and civil servants from <br />member countries. <br />Global Development Learning Network <br />(GDLN) is a network of 120 learning <br />centers across 80 countries facilitating <br />Criticism of IMF and World <br />Bank <br />Bank <br />Conditionalitiesincluding <br />Structural Adjustment Programs. <br />The IMF advocates Keynesian <br />approach of demand-side economics,currency devaluation which isinflationary.<br />Their austerity programmes are self <br />contradictory. <br />International Monetary Fund Gold <br />Reserve is allegedly undervalued.<br />Contd <br />Contd <br />The Argentinean economic crisis of 2001 <br />due to privatization of vital nationalresources and maldesigned fiscalfederalism.<br />Easier currency movement by Kenyan <br />central bank proposed by SAPs of IMF ledto the Goldenberg scandal worth billionsof Kenyan shillings.<br />Since 1980 over 100 countries have <br />experienced a banking collapse which <br />has reduced GDP by 4% or more. <br />In 21 countries of eastern Europe which <br />