ABSTRACT
The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) were designed in 1944 to facilitate the operation and growth of the international economy. When the organizations began operations in 1945, only some Soviet Bloc countries appeared on the membership roster, despite both institutions' professed goal of universal membership. The fact that some states receive a level of Bank and Fund aid which is not consistent with their performance on selected economic variables does testify to the existence of a political arena, even a very small one, in both the IMF and IBRD. There are two conflicting claims in the literature on Bank and Fund policies and behavior regarding the possible political nature of Bank and Fund operations. IMF and IBRD relationships with the Soviet Bloc can be classified into three periods: a period marked by caution and mutual suspicion; a period of relative cooperation; and a period of increasing tension resulting from economic crisis.
