International financial institutions are the so called International Monetary Fund (IMF) and World Bank (WB), because they prefigured the financial system at a supranational level that would make the face of coins and imbalances the balances of payments. These agreements are international treaties ratified by all countries participating shares of the capital. The capital is paid only in part that determines the ability to vote. Countries covering the overwhelming majority of the shares in the IMF are U.S., Japan, Germany, England, and France (Routledge, 2001).
The IMF is used to lend money to rectify temporary imbalances of exchange, which ran out when the imbalance was healed. The International Bank for Reconstruction and Development is the first institution of what would become "the World Bank Group", but it was to ensure long-term loans granted for projects. The IMF originally had the task of ensuring monetary stability in the global economy, establishing a system of fixed exchange rates and giving support to the balance of payments. At the time of its creation, the countries played a very limited role (Kanbur, 1999).
The IMF is headed by a director and directed by a Board of Governors, who meets once a year. Each member country has its own governor, while the current management is governed by 24 directors. The IMF's financial structure is based on Currency, the SDR (Special Drawing Rights, SDR), which are determined from an average exchange rate of the strongest currencies.
Global Financing Operations
The World Bank was born as IBRD, with the task of financing the reconstruction of Europe after the Second World War and is the first of the five institutions of the World Bank Group.
In 1956, The International Financial Corporation (IFC) was created to promote economic growth through the private sector. Its mission is to invest in commercial enterprises by providing loans at current interest to developing countries. It is of crucial importance because it attracts a huge amount of private and public investment, since the credibility of a guarantor in the places where it occurs. Today it is the fastest growing institution, and it has provided loans for $ 8.4 billion in 1997 (Gerrard, 2001).
In 1960, The International Development Association, IDA, was founded to provide interest-free loans to the poorest countries, with 10 years of grace and repayable in 35-45 years. The beneficiary countries have a per capita income of no more than $ 1,000 a year. Today 80 countries have access to these funds.
In 1988, The Multilateral International Guarantee Agency, MIGA was createdto provide insurance to companies that make investments in countries receiving World Bank loans. The warranty covers the political risk in a currency transfer, expropriation, war, civil disturbance and breach of contract. MIGA also provides assistance to member countries to create a climate attractive to private investment in the recipient countries. Since 1988, MIGA has over 70 operations in 25 countries, covering 4.7 billion dollars of investment (Ferroni, 2002).
The fifth institution is the International Centre for Settlement of Investment Disputes, ICSID, which ...