The global financial crisis has once again put the International Monetary Fund at the center of news and — once again — eclipsed the World Bank. Thats natural given the job of the IMF, which is to douse financial flames with a blanket of money. The World Bank is the business of long-term development.
But an analysis by the World Banks Independent Evaluation Group, an in-house watchdog, says its the World Bank thats really providing the bulk of the cash. While the IMF committed about $170 billion to fighting the global financial crisis between July 2008 and December 2009 through loans to troubled countries — about twice the total of the World Bank — the World Bank has actually spent more money.
According to the IEG, the Bank actually disbursed $59.9 billion in loans, while the IMF disbursed $50.7 billion. One reason for the discrepancy may be that some IMF commitments were for lines of credit to Poland, Colombia and Mexico, which those countries never tapped.
These data highlight the rise in (World Bank Group) financial flows relative to the past and relative to other international financial institutions, said the IEG.