Distinguishing the IMF & WTO

During the 2nd World War, many countries gathered at a conference in the US in 1944 to establish a framework for economic cooperation and development among member countries. As a result, the International Monetary Fund (IMF) and World Bank were formed, known as Bretton Woods institutions, which have continued to evolve along with changing global circumstances. The IMF works to oversee development and economic cooperation between countries, with the aim of achieving a stable and prosperous global economy. Meanwhile, the World Trade Organization (WTO) was established in 1995 to regulate trade relations between countries. It is a result of extensive negotiations between participating countries through several rounds of talks known as GATT rounds. This article highlights the main differences between these two influential global bodies, which work closely together.

Key Takeaways

• IMF aims to increase economic cooperation between member countries and help poor countries, while WTO aims to provide a level playing field for member countries in international trade.
• IMF focuses on maintaining stable exchange prices of currencies for member countries, whereas WTO ensures no member country suffers from unfair trade barriers such as tariffs and embargoes.
• IMF provides help and assistance through technical aid, while WTO provides a framework for maintaining trade relations with other countries.