Explain Role of World Bank and International Monetary Fund.

The World Bank and the International Monetary Fund (IMF) play crucial roles in the global financial system, providing financial assistance, technical expertise, and policy advice to promote economic development and stability in countries around the world.

The World Bank:
The World Bank, comprising two main institutions – the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) – focuses on reducing poverty and promoting sustainable development in low and middle-income countries. It provides loans, grants, and technical assistance to support projects and programs in areas such as infrastructure development, education, healthcare, agriculture, and environmental sustainability. The World Bank also works to strengthen governance, institutions, and policy frameworks to foster inclusive growth and poverty reduction. Additionally, the World Bank serves as a knowledge hub, conducting research, analysis, and capacity-building activities to inform policymaking and promote best practices in development.

The International Monetary Fund (IMF):
The IMF is a global financial institution that aims to promote international monetary cooperation, exchange rate stability, and balanced economic growth. It provides financial assistance to member countries facing balance of payments problems or economic crises, helping them stabilize their economies, restore confidence, and implement policy reforms. The IMF also conducts surveillance of global economic developments, assesses member countries' economic policies, and provides policy advice and technical assistance to support macroeconomic stability, fiscal sustainability, and financial sector resilience. Additionally, the IMF serves as a forum for international economic dialogue and cooperation, facilitating coordination among member countries and promoting consensus on key economic issues.

In summary, the World Bank and the IMF play complementary roles in the global financial system, with the World Bank focusing on long-term development and poverty reduction and the IMF focusing on short-term macroeconomic stability and crisis management. Together, they work to promote economic growth, reduce poverty, and enhance the resilience and sustainability of economies around the world.