Bretton Woods Institutions (1944)
The World Bank and the IMF were both created in 1944 at a conference of world leaders in Bretton Woods, New Hampshire, in the United States. Originally called the United Nations Monetary and Financial Conference, the Bretton Woods Conference—which took place July 1-22, 1944—drafted the Articles of Agreement for IBRD and the IMF with the aim of placing the international economy on a sound footing after World War II.
As a result of their shared origin, the two entities— the IMF and the expanded World Bank Group—are sometimes referred to collectively as the Bretton Woods institutions. The Bank Group and the IMF work closely together, have similar governance structures, have a similar relationship with the United Nations, and have headquarters in close proximity in
The Bretton Woods Conference took place at Mount Washington Hotel, situated in Bretton Woods, New Hampshire. © World Bank. Permission required for reuse.
Washington, D.C. Although membership in the Bank Group's institutions is open only to countries that are already members of the IMF, the Bank Group and the IMF remain separate institutions. Their work is complementary, but their individual roles are quite different.
The Bank Group lends only to developing or transition economies, whereas all member countries, rich or poor, can draw on the IMF's services and resources. The IMF's loans address short-term economic problems: they provide general support for a country's balance of payments and international reserves while the country takes policy action to address its difficulties. The Bank Group is concerned mainly with longer-term issues: it seeks to integrate countries into the wider world economy and to promote economic growth that reduces poverty.
The IMF focuses on the macroeconomic performance of economies, as well as on macroeconomic and financial sector policy. The Bank Group's focus extends further into the particular sectors of a country's economy, and its work includes specific development projects as well as broader policy issues.
Busan Partnership for Effective Development Cooperation
In 2011, the Global Partnership for Effective Development Cooperation built on a range of international efforts, including those begun in the Monterrey Consensus of 2002, the Rome Declaration on Harmonisation (2003), the Paris Declaration on Aid Effectiveness (2005), and the Accra Agenda for Action in 2008. The Busan Partnership agreement sets out principles, commitments, and actions that offer a foundation for effective cooperation in support of international development.
The Busan Partnership for Effective Development Cooperation for the first time established an agreed framework for development cooperation that embraces traditional donors, South-South cooperators, the BRICS (that is, Brazil, the Russian Federation, India, and China), civil society organizations, and private hinders.