Final answer:
The IMF and the World Bank both offer loans and financial assistance, as well as policy advice and technical assistance, to support the economic development of developing countries. Initially focused on post-war rebuilding, these organizations now help stabilize and grow economies with conditional loans and guidance.
Step-by-step explanation:
The International Monetary Fund (IMF) and the World Bank offer loans and financial assistance as well as policy advice and technical assistance to developing nations. The World Bank focuses on supporting government planning and investments, managing natural disasters, providing infrastructure for necessities like clean water, education, and boosting agricultural production. On the other hand, the IMF is known for promoting economic development through monetary stability, offering interest-free development loans with conditional advice that influences economic policies of borrowing nations.
Both organizations were established in 1944 with the primary goal of global economic stabilization and rebuilding post-World War II economies. Over time, they adapted to the evolving global landscape by providing loans with conditions aimed at fostering economic growth, stability, and development in lower-income countries. Specifically, the IMF became a lender of last resort for countries facing severe financial crises, while the World Bank shifted to funding development projects worldwide.