Compare the similarities and differences between the world bank (wb) and the international monetary fund (imf) indicate the role of the wb and imf on vietnams economic

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN *** COURSE INTERNATIONAL ECONOMICS TOPIC Compare the similarities and differences between the World Bank (WB) and the International Monetary Fund (IMF) Indicate the rol[.]

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

-*** -COURSE: INTERNATIONAL ECONOMICS

TOPIC: Compare the similarities and differences between the

World Bank (WB) and the International Monetary Fund (IMF) Indicate the role of the WB and IMF on Vietnam's economic development over the last twenty years.

Group: 9 Class: International Economics 63B AEP PhD: Ngo Thi Tuyet Mai

Ha Noi, 2023

I Topic Questions 1

1) Compare the similarities and differences between the World Bank (WB) and the International Monetary Fund (IMF) 1 2) Indicate the role of the WB and IMF on Vietnam's economic development over the last twenty years 4

II The questions related to the presentation 9

What are the main differences between a forward contract and a futures

contract for an investor’s hedging? 9

III Debating questions 10

1) How will the World Bank and IMF adapt their policies and activities to address the potential economic impacts of climate change in the coming

decades? 10 2) How will geopolitical trends and shifts in global power dynamics affect the governance and decision-making processes of the World Bank and IMF in the years to come? 10 3) What impact will the rise of emerging economies, such as China and India, have on the global influence and priorities of the World Bank and IMF

in the future? 12

I Topic Questions

1) Compare the similarities and differences between the World Bank (WB) and the International Monetary Fund (IMF)

Similarities between the World Bank (WB) and the International Monetary Fund (IMF)

 Both were established after World War II to support global economic recovery and development The WB was founded in 1944 and the IMF was set up in 1945

 Both are headquartered in Washington DC, USA

 Both have the function of providing financial assistance to countries in the development process and creating opportunities for member countries to participate in global economic activities

 Both implement financial and monetary policies to stabilize and develop the global economy, ensuring financial stability and reducing the negative impacts of economic crises

Differences between the World Bank (WB) and the International Monetary Fund (IMF):

World Bank (WB) International Monetary

Fund (IMF)

Motivation Focuses on giving developing

nations with long-term

Provides temporary loans to nations with problematic

financing and funding to help their efforts to reduce

unemployment and advance economic growth

balances of payments to help them stabilize their

economies

Primary

focus

Social and economic development

Macroeconomic stability

Staff - The World Bank employs

more than 10,000 individuals worldwide, but the majority of them work at its main office in Washington, DC, despite the organization having 40 offices

in other countries

The IMF staff includes 2,600 people

Country

members

The World Bank (WB) has 189 member countries, including both developed and developing countries from around the world

In accordance with the IBRD Articles of Agreement, a country cannot join the Bank without first joining the International Monetary Fund (IMF) IBRD participation is necessary to take part in IDA, IFC, and MIGA

-The IMF has 190 member countries, including both developed and developing countries from around the world

-Andorra doesn’t take part in WB

Institutions - Consists of 5 organizations:

+IBRD and IDA (2 mains) +IFC

+ICSID +MIGA

- Headquarter: Washington, DC, U.S

The IMF maintains two main offices in Washington, D.C.,

as well as three smaller locations in Geneva, Paris, and New York's United Nations

Function - The IBRD was formally

created on December 27, 1945, with the primary mission of financing the post-World War II economic recovering of Western European nations

- IDA, founded in 1960 to offer financing to impoverished nations

- IFC, formed in 1956 to encourage private investment in underdeveloped nations;

- MIGA, launched in 1988 to encourage FDI in developing nations

- The IMF helps establish strategies for monetary and fiscal policy, as well as price stability, that assist countries

in monitoring, assessing, and enhancing their economic growth

- It also helps to increase and maintain a high level of employment by facilitating the expansion and balanced growth of international commerce

- To keep members' foreign exchange transactions running smoothly, strengthen

- ICSID, founded in 1966 as a venue to settle disagreements between foreign investors and host nations

the stability of the foreign exchange market

Sponsor

Fund

Long-lasting assistance is provided by the World Bank, which gets its funding by donations from the member countries and through the purchase of debt

IMF funds depend on three sources: member quotas, multilateral and bilateral borrowing agreements

Operating

system

The World Bank has a Board of Directors and an Executive Chairman of the organization

Staff positions:

- Economis

- Project Manager

- Economic Analyst

- Statistician

- Financial Specialist

- Environmental Specialist

- Educator

The IMF has a Board of Directors and a Chief Financial Officer that runs the organization

Staff positions -Financial Specialists -Economists

-Legal specialist -Training support staff

2) Indicate the role of the WB and IMF on Vietnam's economic

development over the last twenty years.

The process of Vietnam joining the IMF and the World Bank as a member

Before 1976, Vietnam was in a period of war and its economic policies did not attract much attention from many countries and international organizations Many countries imposed economic measures against Vietnam during this time, including sanctions and trade embargoes

In the West, the United States, an important trading partner of Vietnam before the war broke out, imposed trade sanctions and financial policies against

Vietnam This isolated Vietnam and prevented it from attracting foreign direct investment (FDI) from Western countries

Similarly, the World Bank (WB) did not provide much economic support to Vietnam during this period, due to conflicts over policies and views on the war issue

However, after Vietnam was reunified in 1975, the new government of Vietnam expanded its diplomatic relations and developed new economic programs to attract foreign direct investment and support from international organizations Vietnam applied to join the International Monetary Fund (IMF) and the World Bank (WB) However, this accession encountered many obstacles due to the opposition of the United States and some other Western countries

In 1979, the United States used the pretext of Vietnam's invasion of Cambodia

to deny Vietnam the benefits of the IMF and the World Bank

It was not until 1993 that Vietnam was finally accepted as a member of the International Monetary Fund and the World Bank after implementing a series of

economic and political reforms to promote sustainable development of the country

In 1993, US President Bill Clinton lifted the trade embargo against Vietnam Since then, the IMF and the World Bank have immediately resumed their

relations with Vietnam

Vietnam’s corporation with the IMF:

*Vietnam has carried out many corporations with the IMF (International

Monetary Fund) in various fields to contribute to the development of the region and the world Here are some highlights:

Cooperation with the IMF on fiscal policy: The IMF has assisted Vietnam in formulating and implementing effective fiscal policies to ensure financial

stability and enhance economic development

Implementation of the economic renewal program: The IMF has assisted

Vietnam in the implementation of the economic renewal program, thereby creating a more favorable business environment, enhancing competition and enhancing economic productivity

Human resource training: The IMF has provided assistance to Vietnam in training human resources on issues related to fiscal policy and economic

development

Strengthening regional cooperation: The IMF has also increased cooperation with countries in Southeast Asia, including Vietnam, to create a region with a more robust financial system and economic policy

In summary, Vietnam has made positive contributions to the IMF in many different fields, thereby contributing to the economic development of the region and the world

*IMF supports Vietnam during the global economic crisis:

In the context of the global economic crisis in the years 2008-2009, the

International Monetary Fund (IMF) provided Vietnam with an emergency loan

of $1.4 billion It is known that this loan was provided to help stabilize

Vietnam's economic and financial situation in the context of global economic recession

This loan was provided in the form of a National Financial Adjustment Program, aimed at minimizing the negative impacts of the global economic crisis on Vietnam's economy Accordingly, the program focuses on strengthening

financial management, adjusting costs, enhancing financial system supervision, improving the business environment, and promoting economic growth

In addition to providing funding, the IMF has also supported Vietnam through activities such as training and consulting on financial management and

economic reforms, aimed at enhancing financial management capacity and improving the business environment to help Vietnam's economy recover and develop more sustainably

Vietnam’s corporation with World Bank:

*Vietnam is one of the fastest growing countries in Southeast Asia and a reliable partner of the World Bank Vietnam has contributed a lot to the World Bank through the implementation of development programs and cooperation with this organization in various fields Here are some examples:

Contribution to development projects: Vietnam has cooperated with the World Bank in many important development projects such as clean water and

sanitation projects, education, health care, economic development, agricultural development, etc rural areas, urbanization and transport infrastructure

Contribution to the World Bank's fund: Vietnam has contributed to the World Bank's fund to help other countries in the region develop

Cooperation in poverty reduction: Vietnam has cooperated with the World Bank

in many poverty reduction programs, including improving the living conditions

of the poor and increasing their ability to earn a living

Participation in economic renewal programs: Vietnam has been supported by the World Bank in the implementation of economic renewal programs, helping Vietnam to achieve impressive economic growth over the years

In short, Vietnam has contributed a lot to the World Bank through the

implementation of development and cooperation programs in various fields

In the past, Vietnam has had some conflicts with the World Bank and the IMF regarding economic and fiscal policies However, there is no evidence that Vietnam has been ostracized by these organizations

*The project on hunger eradication and poverty alleviation in

Vietnam is supported by the World Bank:

The Agriculture and Rural Development Support Project (2016-2020): This project aims to support the development of agriculture and rural areas in

Vietnam, especially in difficult rural areas The project focuses on activities such as improving rural infrastructure, supporting farmers in transitioning crops and livestock, and increasing productivity and quality of agricultural products

In fact, Vietnam has actively made efforts to improve its relationship with the World Bank and the IMF In the 1990s, Vietnam joined the economic reform program and implemented many new policies aimed at enhancing

competitiveness, economic growth and poverty reduction These efforts have been appreciated by both the World Bank and the IMF

Since then, Vietnam has become a reliable partner of the World Bank and the IMF Both organizations have supported Vietnam in a variety of areas, from fiscal policy and economic development to education and health Vietnam has also been actively involved in the activities of both organizations, including contributing to the fund and participating in loan programs

II The questions related to the presentation

What are the main differences between a forward contract and a futures contract for an investor’s hedging?

Studying the similarities between the International Monetary Fund (IMF) and the World Bank (WB) can be useful for several reasons:

Understanding their roles: Both the IMF and the WB are international

organizations that were established after World War II with the aim of

promoting global economic development and stability By studying their

similarities, we can gain a deeper understanding of their respective roles in achieving these goals

Identifying areas of collaboration: The IMF and the WB often work together on various projects, such as debt relief programs and poverty reduction initiatives

By understanding their similarities, we can identify areas where the two

organizations can collaborate more effectively

Assessing their effectiveness: The IMF and the WB have faced criticism in the past for their policies and practices By studying their similarities, we can assess their effectiveness in achieving their goals and identify areas for improvement Improving global economic governance: The IMF and the WB play important roles in global economic governance, and understanding their similarities can help us improve the overall effectiveness and efficiency of global economic institutions

In summary, studying the similarities between the IMF and the WB can provide valuable insights into their roles, collaboration opportunities, effectiveness, and the broader landscape of global economic governance

III Debating questions

1) How will the World Bank and IMF adapt their policies and activities

to address the potential economic impacts of climate change in the coming decades?

The World Bank and IMF have already started to shift their policies and

activities towards addressing the potential economic impacts of climate change However, in the coming decades, they will likely need to do more to adapt their approach to meet the growing challenge of climate change

One possible way that the World Bank and IMF could adapt their policies is by increasing their focus on climate-related projects and investments This could involve supporting renewable energy projects, investing in climate-resilient infrastructure, and helping countries transition to low-carbon economies The World Bank has already set a target of providing 35% of its lending and grant support for climate action by 2025

2) How will geopolitical trends and shifts in global power dynamics affect the governance and decision-making processes of the World Bank and IMF in the years to come?

Geopolitical trends and shifts in global power dynamics are likely to have a significant impact on the governance and decision-making processes of the World Bank and IMF in the years to come Here are some potential impacts: