Nauru becomes 189th member of IMF, World Bank

South Pacific island nation Nauru has become the 189th member of the International Monetary Fund (IMF) and the World Bank.

• Nauru applied for membership in the Washington-based IMF and World Bank in April 2014, after joining the United Nations in 1996 as the world’s smallest independent republic.
• The World Bank, which helps developing countries to spur growth and fight poverty, welcomed Nauru as its smallest member by land mass, at 21 square kilometers.
• South Sudan had become the institution’s 188th member and last country to join the IMF and World Bank in April 2012.

IMF vs World Bank:

Lending:

• IMF promotes exchange stability and orderly exchange relations among its member countries. World Bank assists developing countries via long-term financing of development projects and programs. While IMF lends for Short Term.

Type of Projects:

• World Bank especially extends loan for development projects and also for health and education
• IMF looks over the international monetary system while World Bank promote the economic development of the poor countries.
• The IMF is a small institution as compare to World Bank and unlike the World Bank, has no affiliates or subsidiaries.

Organisation Structure:

• The structure of World Bank is more complex than IMF. World Bank comprises two institutes: the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
• Washington DC, is the base for World Bank Group and International Monetary Fund.

Nauru:

• Capital: Yaren District
• Currency: Australian Dollar