The IMF aims to preserve economic stability and to tackle - or ideally prevent - financial crises. Over time, its focus has switched to the developing world.
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IMF's role in the developing world has been scrutinised
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The World Bank's predecessor - the International Bank for Reconstruction and Development - was set up to drive post-war recovery. Now, it is the world's leading development organisation, working for growth and poverty reduction.
Owned by the governments of its 185 member states, the Bank channels loans and grants and advises low and middle-income countries.
The IMF is funded by a charge - known as a "quota" - paid by member nations. The quota is based on a country's wealth and it determines voting power within the organisation; those making higher contributions have greater voting rights.
The Fund acts as a lender of last resort, disbursing its foreign exchange reserves for short periods to any member in difficulties.
Crisis response
The IMF and World Bank attempt to help countries or regions in economic turmoil.
In October 2008 the IMF activated an emergency funding scheme for countries facing economic distress resulting from the global financial crisis. As of August 2010, it had committed around $200 billion in lending to a number of economies affected by the crisis. The biggest borrowers were Hungary, Romania and Ukraine.
The eurozone crisis of 2010 also triggered extensive IMF intervention, including hefty bail-outs for countries such as Greece and Ireland.
Past interventions by the IMF have included providing funds for countries caught up in the 1997 Asian financial crisis, and loans to help South American countries such as Argentina and Brazil stave off debt default crises.
The IMF can also grant emergency loans following natural disasters; these have included the 2004 Asian tsunami.
Developing countries
The IMF and World Bank set up the Poverty Reduction and Growth Facility in 1999. The scheme grants loans with conditions attached.
A strategy paper - called a Letter of Intent - specifies the elements of a country's recovery plan. In return, loans are agreed as and when the targets laid down in the letter are met.
The IMF may demand reforms to promote good governance and to tackle corruption. The Fund maintains that a good climate for business is essential for growth and poverty reduction.
The World Bank funds specific infrastructure projects. One of its agencies, the International Development Association, focuses on the world's poorest nations. The Bank has pledged its support for UN-backed Millenium Development Goals to reduce key indicators of poverty by 2015.
Debt relief
The Highly Indebted Poor Countries Initiative (HIPC), launched by the IMF and the World Bank in 1996, aims to reduce the debt owed by the world's poorest countries in return for economic reform.
States are eligible if their debt is unsustainable and cannot be tackled by traditional methods. The reforms they have to undertake often include privatisations.
By 2005 nearly 40 countries had started programmes under the HIPC. Debt relief kicks in when a country meets what is called the "decision point". The end of the process is known as the "completion point".
By the end of 2010, 32 countries had reached their completion points and were receiving full debt relief from the IMF and other creditors under proposals drawn up in 2005 by the finance ministers of the G8 group.
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