The World Bank and the IMF are sometimes categorised as International Finance Institutions (IFIs). Both are specialised UN agencies, with the same origins and a similar governance structure. A country has to be a member of the IMF to become a member of the World Bank. Today, 185 countries are members of the IMF. Each member state holds shares in the Bank and the Fund which are calculated in relation to the economic capacity of that state. The voting power of the member states is also in accordance with their share. That means that the US, which holds about 17%, has the most powerful voice on the Board, followed by Japan, Germany, France and the UK. Traditionally the World Bank President is chosen by the US government while the Europeans propose the Managing Director of the IMF.

The IMF and the World Bank work in complementary fashion. As their tasks are related, they launch some programmes and concepts in tandem, such as PRSP. However, there are some clear differences: the World Bank’s focus is mainly on medium to long-term economic and social development. To facilitate this process, the Bank provides medium-term loans (to medium and high-income countries) and long-term credits to low-income countries. Recently, it started to provide grants to low-income countries that are experiencing balance of payments difficulties in the form of high and unsustainable debt service ratios. In addition to financial assistance, the World Bank also provides technical assistance and analytical advice through its economic and sectoral work. By contrast, the IMF focuses more on short-term macroeconomic issues arising from fiscal, monetary and exchange rate policies. To help countries overcome macroeconomic crises, the IMF provides short-term loans.