World Money
Where does the IMF and World Bank get their money from?
I read that the International Monetary Fund and the World Bank provide money to third world countries in an attempt to end poverty, but where do they get this money from? And when/how does the countries receiving the money pay them back?
And the IMF and World Bank are private organizations are they not?
Why would the 180+ countries pay a subscription to be part of this?
And again, how do the countries receiving the money ever pay them back?
No, they’re not private organizations.
The International Monetary Fund (IMF) is an organization of 186 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF’s resources come mainly from the money that countries pay as their capital subscription when they become members. The IMF also has some of the largest official holders of gold in the world. The IMF keeps track of its future ability to lend by monitoring its one-year forward commitment capacity, which gives an indication of resources available for lending.
The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense; it is made up of two unique development institutions owned by 186 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
To read more about the work of the IMF and the World Bank, click on the links below.
Imagining a World Without Money