PARIS, May 1: The International Monetary Fund and the World Bank, both of which Venezuela is set to leave, were created more than 60 years ago to help the smooth running of the world economy and the fight against poverty.

Dominated since their conception by the United States and Europe, the organisations are regularly criticised.

The IMF: Created, as was the World Bank, at the Bretton Woods meeting in the United States in 1944 and given a mission to guarantee stability in the world financial system after the conclusion of World War II.

In the last 30 years, the main responsibility of the IMF has been as a “lender of last resort” to countries experiencing financial difficulties, but it also monitors the currency market and government finances as well as giving technical advice.However, owing to strong economic growth in the last few years, many borrowers have been able to repay their debts and have begun to ignore the institution.

This has led to questions about the future need for the Washington-based organisation, which has 185 member countries, and has deprived it of income from interest payments on its loans.

The IMF is therefore in search of a new role, but is viewed with suspicion by emerging countries, many of which have relied on the IMF at some point, and is reviled by the anti-globalisation movement.

Loans from the IMF are normally on condition of “structural adjustment programmes” which can include unpopular policies such as cutting state subsidies, raising taxes or devaluing the national currency.

Emerging countries want better representation in the IMF and a modest reform effort has begun.

The World Bank: Set up as a body to help fight poverty throughout the world, its detractors criticise its bureaucratic structure, its perceived bias in favour of Washington and its liberal economic agenda.

The World Bank loaned $20.1 billion last year to finance 245 projects worldwide.

The IDA, the World Bank finance arm to help the poorest countries, makes loans over 30-40 years with no interest charges and a 10-year grace period for repayments.—AFP