Role of World Bank, IMF WTO & other Important International Organisations in world Economy:- For Ras RTS Mains exam of Rpsc

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[<–2/”>a >su_heading]World Bank[/su_heading]

The International Bank for Reconstruction and Development (IBRD), commonly referred to as the World Bank, is an international financial institution whose purposes include assisting the development of its member nation’s territories, promoting and supplementing private foreign Investment and promoting long-range balance Growth in international trade.

The World Bank was established in December 1945 at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. It opened for business in June 1946 and helped in the reconstruction of nations devastated by World War II. Since 1960s the World Bank has shifted its focus from the advanced industrialized nations to developing third-world countries.

Organization and Structure:

The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the president and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank.

Capital Resources of World Bank:

The initial authorized capital of the World Bank was $ 10,000 million, which was divided in 1 lakh Shares of $ 1 lakh each. The authorized capital of the Bank has been increased from time to time with the approval of member countries.Member countries repay the share amount to the World Bank in the following ways:

  1. 2% of allotted share are repaid in gold, US dollar or Special Drawing Rights (SDR).
  2. Every member country is free to repay 18% of its capital share in its own currency.
  3. The remaining 80% share deposited by the member country only on demand by the World Bank.

Objectives:

The following objectives are assigned by the World Bank:

 

  1. To provide long-run capital to member countries for economic reconstruction and development.

 

  1. To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium and balanced development of international trade.

 

  1. To provide guarantee for loans granted to small and large units and other projects of member countries.

 

  1. To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy.

 

  1. To promote capital investment in member countries by the following ways;

 

(a) To provide guarantee on private loans or capital investment.

 

(b) If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.

 

Functions:

 

World Bank is playing main role of providing loans for development works to member countries, especially to underdeveloped countries. The World Bank provides long-term loans for various development projects of 5 to 20 years duration.

 

The main functions can be explained with the help of the following points:

 

  1. World Bank provides various technical Services to the member countries. For this purpose, the Bank has established “The Economic Development Institute” and a Staff College in Washington.

 

  1. Bank can grant loans to a member country up to 20% of its share in the paid-up capital.

 

  1. The quantities of loans, interest rate and terms and conditions are determined by the Bank itself.

 

  1. Generally, Bank grants loans for a particular project duly submitted to the Bank by the member country.

 

  1. The debtor nation has to repay either in reserve currencies or in the currency in which the loan was sanctioned.

 

  1. Bank also provides loan to private investors belonging to member countries on its own guarantee, but for this loan private investors have to seek prior permission from those counties where this amount will be collected.

[su_heading]International Monetary Fund(IMF)[/su_heading]

The major roles of the International Monetary Fund are as follows:

  1. To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.
  2. To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of EMPLOYMENT and real income and to the development of the productive resources of all members as primary objectives of economic policy.
  3. To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.
  4. To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of Foreign Exchange restrictions which hamper the growth of world trade.
  5. To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.
  6. In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.“Articles of Agreement: ARTICLE I—Purposes,” International Monetary Fund

[su_heading]World Trade Organization(WTO)[/su_heading]

The important Objectives of WTO are:

1. To improve the standard of living of people in the member countries.

2. To ensure full employment and broad increase in effective demand.

3. To enlarge production and trade of goods.

4. To increase the trade of services.

5. To ensure optimum utilization of world resources.

6. To protect the Environment.

7. To accept the Concept of Sustainable Development.

Functions:

The main functions of WTO are discussed below:

1. To implement rules and provisions related to Trade Policy review mechanism.

2. To provide a platform to member countries to decide future strategies related to trade and tariff.

3. To provide facilities for implementation, administration and operation of multilateral and bilateral agreements of the world trade.

4. To administer the rules and processes related to dispute settlement.

5. To ensure the optimum use of world resources.

6. To assist international organizations such as, IMF and IBRD for establishing coherence in Universal Economic Policy determination.

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The World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO) are three of the most important international organizations in the world economy. They play a vital role in promoting economic growth, stability, and development around the globe.

The World Bank was founded in 1944 to help rebuild Europe after World War II. It is now a global development institution that provides financial and technical assistance to developing countries. The World Bank Group comprises five institutions: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).

The IBRD provides loans to middle-income and creditworthy low-income countries. The IDA provides grants and low- or no-interest loans to the poorest countries. The IFC invests in private sector projects in developing countries. MIGA provides political risk insurance to investors in developing countries. ICSID provides a forum for resolving investment disputes between investors and host governments.

The World Bank’s mission is to fight POVERTY and improve living standards for people in the developing world. It does this by providing financial assistance, policy advice, and technical assistance to governments and private sector organizations. The World Bank’s lending operations are focused on four key areas:

  • Infrastructure-2/”>INFRASTRUCTURE: The World Bank supports the development of infrastructure projects such as roads, bridges, power Plants, and water systems.
  • agriculture and rural development: The World Bank supports programs to improve agricultural productivity, increase access to markets, and reduce rural poverty.
  • Education and Health: The World Bank supports programs to improve access to education and health care, especially for the poor.
  • Social protection and social inclusion: The World Bank supports programs to reduce poverty and inequality, and to promote social inclusion.

The World Bank has been criticized for its lending practices, which have sometimes led to debt crises in developing countries. The World Bank has also been criticized for its lack of Transparency and Accountability. However, the World Bank remains one of the most important sources of financial and technical assistance for developing countries.

The International Monetary Fund (IMF) was founded in 1945 to help promote international monetary cooperation, exchange

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stability, and orderly exchange arrangements. The IMF is a global financial institution that provides loans to countries experiencing balance of payments difficulties. The IMF also provides technical assistance to governments on economic and financial matters.

The IMF’s mission is to ensure the stability of the International Monetary System. It does this by providing loans to countries in financial difficulty, by promoting exchange rate stability, and by providing technical assistance to governments on economic and financial matters. The IMF’s lending operations are focused on three key areas:

  • Balance of payments support: The IMF provides loans to countries that are experiencing balance of payments difficulties. These loans are designed to help countries stabilize their economies and restore their external financial positions.
  • Technical assistance: The IMF provides technical assistance to governments on economic and financial matters. This assistance includes advice on macroeconomic policy, financial sector reform, and Subscribe on YouTube
href="https://exam.pscnotes.com/debt-management/">Debt Management.
  • Conditionality: The IMF’s loans are typically subject to conditionality, which means that the IMF requires the recipient country to implement certain Economic Reforms in order to receive the loan.

    • The IMF has been criticized for its lending practices, which have sometimes led to austerity measures in developing countries. The IMF has also been criticized for its lack of transparency and accountability. However, the IMF remains one of the most important sources of financial assistance for countries experiencing balance of payments difficulties.

    The World Trade Organization (WTO) was founded in 1995 to promote international trade and to help reduce tariffs and other barriers to trade. The WTO is a global organization that provides a forum for negotiating trade agreements and for resolving trade disputes.

    The WTO’s mission is to help trade flow smoothly, freely, fairly, and predictably. It does this by providing a forum for negotiating trade agreements, by monitoring and enforcing trade agreements, and by providing technical assistance to developing countries. The WTO’s main functions are:

    • Negotiating trade agreements: The WTO is responsible for negotiating trade agreements between its member countries. These agreements reduce tariffs and other barriers to trade, and they promote the free flow of goods and services.
    • Monitoring and enforcing trade agreements: The WTO is responsible for monitoring and enforcing the trade agreements that its member countries have signed. This includes resolving trade disputes between member countries.
    • Providing technical assistance to developing countries: The WTO provides technical assistance to developing countries to help them participate in the global trading system. This assistance includes training on trade policy and on how to comply with WTO rules.

    The WTO has been criticized for its lack of transparency and accountability. The WTO has also been criticized for its failure to address some of the challenges facing the global trading system, such as the rise of protectionism and

    The World Bank is an international financial institution that provides loans to developing countries for capital programs. The IMF is an international financial institution that provides loans to countries to help them stabilize their economies. The WTO is an international organization that promotes free trade.

    The World Bank was founded in 1944 at the Bretton Woods Conference. The IMF was also founded at Bretton Woods. The WTO was founded in 1995.

    The World Bank has 189 member countries. The IMF has 189 member countries. The WTO has 164 member countries.

    The World Bank’s mission is to fight poverty and improve living standards for people in the developing world. The IMF’s mission is to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. The WTO’s mission is to ensure that trade flows as smoothly, freely, and fairly as possible.

    The World Bank provides loans to developing countries for capital programs. These loans are used to finance infrastructure projects, such as roads, bridges, and schools. The IMF provides loans to countries to help them stabilize their economies. These loans are used to support the country’s currency and to finance government programs. The WTO promotes free trade by negotiating trade agreements between countries. These agreements reduce tariffs and other barriers to trade.

    The World Bank has been criticized for its lending practices. Some critics argue that the World Bank’s loans are too expensive and that they do not always lead to economic development. The IMF has also been criticized for its lending practices. Some critics argue that the IMF’s loans are too restrictive and that they do not always help countries to recover from economic crises. The WTO has been criticized for its lack of transparency and for its failure to address the concerns of developing countries.

    Despite these criticisms, the World Bank, the IMF, and the WTO play an important role in the world economy. They provide financial assistance to developing countries, they help to stabilize economies, and they promote free trade.

    Here are some frequently asked questions about the World Bank, the IMF, and the WTO:

    • What is the World Bank?
      The World Bank is an international financial institution that provides loans to developing countries for capital programs.

    • What is the IMF?
      The IMF is an international financial institution that provides loans to countries to help them stabilize their economies.

    • What is the WTO?
      The WTO is an international organization that promotes free trade.

    • When were the World Bank, the IMF, and the WTO founded?
      The World Bank was founded in 1944 at the Bretton Woods Conference. The IMF was also founded at Bretton Woods. The WTO was founded in 1995.

    • How many member countries do the World Bank, the IMF, and the WTO have?
      The World Bank has 189 member countries. The IMF has 189 member countries. The WTO has 164 member countries.

    • What are the missions of the World Bank, the IMF, and the WTO?
      The World Bank’s mission is to fight poverty and improve living standards for people in the developing world. The IMF’s mission is to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. The WTO’s mission is to ensure that trade flows as smoothly, freely, and fairly as possible.

    • What does the World Bank do?
      The World Bank provides loans to developing countries for capital programs. These loans are used to finance infrastructure projects, such as roads, bridges, and schools.

    • What does the IMF do?
      The IMF provides loans to countries to help them stabilize their economies. These loans are used to support the country’s currency and to finance government programs.

    • What does the WTO do?
      The WTO promotes free trade by negotiating trade agreements between countries. These agreements reduce tariffs and other barriers to trade.

    • What are some criticisms of the World Bank, the IMF, and the WTO?
      The World Bank has been criticized for its lending practices. Some critics argue that the World Bank’s loans are too expensive and that they do not always lead to economic development. The IMF has also been criticized for its lending practices. Some critics argue that the IMF’s loans are too restrictive and that they do not always help countries to recover from economic crises. The WTO has been criticized for its lack of transparency and for its failure to address the concerns of developing countries.

    • Despite these criticisms, what is the role of the World Bank, the IMF, and the WTO in the world economy?
      Despite these criticisms, the World Bank, the IMF, and the WTO play an important role in the world economy. They provide financial assistance to developing countries, they help to stabilize economies, and they promote free trade.

    1. The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is a vital source of financial and technical assistance to developing countries around the world. The World Bank Group comprises five institutions managed by their member countries. It provides low- or no-interest loans to developing countries for capital programs. The World Bank also provides grants to developing countries through its International Development Association (IDA).

    2. The International Monetary Fund (IMF) is an international organization that was founded in 1945. The IMF’s goal is to promote international monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF provides loans to countries that are experiencing financial difficulties. The IMF also provides technical assistance to countries on a variety of economic issues.

    3. The World Trade Organization (WTO) is an international organization that was founded in 1995. The WTO’s goal is to help trade flow smoothly, freely, fairly, and predictably. The WTO does this by providing a forum for countries to negotiate trade agreements, by setting rules for international trade, and by settling trade disputes.

    4. The United Nations (UN) is an international organization that was founded in 1945. The UN’s goal is to maintain international peace and security, develop friendly relations among nations, achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and promote and encourage respect for Human Rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion.

    5. The Group of Eight (G8) is an international forum that was formed in 1975. The G8 comprises the eight largest economies in the world: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. The G8 meets annually to discuss economic issues and to coordinate their policies.

    6. The Group of Twenty (G20) is an international forum that was formed in 1999. The G20 comprises the 19 largest economies in the world, plus the European Union. The G20 meets annually to discuss economic issues and to coordinate their policies.

    7. The Organization for Economic Co-operation and Development (OECD) is an international organization that was founded in 1961. The OECD’s goal is to promote economic growth, prosperity, and social progress. The OECD does this by providing a forum for countries to discuss economic issues, by setting standards for economic policy, and by providing technical assistance to countries.

    8. The North Atlantic Treaty Organization (NATO) is an intergovernmental military alliance between 30 member states – 28 European countries, the United States, and Canada. The organization implements the North Atlantic Treaty that was signed on 4 April 1949. NATO constitutes a system of collective security, whereby its independent member states agree to mutual defense in response to an attack by any external party. NATO’s headquarters are located in Haren, Brussels, Belgium, while the headquarters of Allied Command Operations is near Mons, Belgium.

    9. The African Union (AU) is a continental union consisting of 55 member states that are located primarily in Africa. The AU was founded in 2002, and it replaced the Organization of African Unity (OAU). The AU’s goal is to promote unity and solidarity among African countries, to defend the Sovereignty, territorial Integrity, and independence of its member states, to eradicate all forms of colonialism, and to promote international cooperation.

    10. The Association of Southeast Asian Nations (ASEAN) is a geopolitical and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Brunei joined on 8 January 1984, Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. These countries are all geographically located in Southeast Asia. The organization promotes intergovernmental co-operation and facilitates economic, political, sociocultural, and security integration among its members.