Role of World Bank, IMF WTO & other Important International Organisations in world Economy:-

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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, IMF, WTO, and other important international organizations play a vital role in the world economy. They provide financial assistance, technical support, and policy advice to developing countries. They also help to promote trade and investment, and to resolve trade disputes.

The World Bank is a vital source of financial assistance for developing countries. It provides loans, grants, and technical assistance to help countries build roads, schools, hospitals, and other Infrastructure-2/”>INFRASTRUCTURE. The World Bank also helps countries to improve their economic policies and to reduce POVERTY.

The International Monetary Fund (IMF) is an international organization that provides financial assistance to countries that are experiencing economic difficulties. The IMF also helps countries to manage their economies and to promote economic growth.

The World Trade Organization (WTO) is an international organization that promotes trade between countries. The WTO helps to reduce tariffs and other trade barriers, and to resolve trade disputes.

Other important international organizations that play a role in the world economy include the United Nations Conference on Trade and Development (UNCTAD), the Organization for Economic Co-operation and Development (OECD), and the Group of 20 (G20).

UNCTAD is an international organization that promotes trade and development among developing countries. The OECD is an international organization that promotes economic growth and cooperation among its member countries. The G20 is an international forum that brings together the world’s major economies to discuss economic issues.

These organizations play a vital role in the world economy by providing financial assistance, technical support, and policy advice to developing countries. They also help to promote trade and investment, and to resolve trade disputes.

The World Bank was founded in 1944 at the Bretton Woods Conference. The goal of the World Bank was to provide financial assistance to countries that were rebuilding after World War II. The World Bank has since grown to become one of the largest sources of financial assistance for developing countries.

The IMF was also founded at the Bretton Woods Conference. The goal of the IMF was to help countries manage their economies and to promote economic growth. The IMF provides loans to countries that are experiencing economic difficulties. The IMF also provides technical assistance to help countries improve their economic policies.

The WTO was founded in 1995. The goal of the WTO is to promote trade between countries. The WTO helps to reduce tariffs and other trade barriers, and to resolve trade disputes. The WTO has been successful in reducing tariffs and other trade barriers. However, the WTO has also been criticized for its lack of transparency and for its failure to address some of the challenges facing the global trading system.

UNCTAD was founded in 1964. The goal of UNCTAD is to promote trade and development among developing countries. UNCTAD provides technical assistance to developing countries and helps them to negotiate with developed countries. UNCTAD has been successful in promoting trade among developing countries. However, UNCTAD has also been criticized for its lack of effectiveness.

The OECD was founded in 1961. The goal of the OECD is to promote economic growth and cooperation among its member countries. The OECD provides technical assistance to its member countries and helps them to coordinate their economic policies. The OECD has been successful in promoting economic growth among its member countries. However, the OECD has also been criticized for its lack of transparency and for its failure to address some of the challenges facing the global economy.

The G20 was founded in 1999. The goal of the G20 is to bring together the world’s major economies to discuss economic issues. The G20 has been successful in promoting economic cooperation among its member countries. However, the G20 has also been criticized for its lack of transparency and for its failure to address some of the challenges facing the global economy.

In conclusion, the World Bank, IMF, WTO, UNCTAD, OECD, and G20 are important international organizations that play a vital role in the world economy. They provide financial assistance, technical support, and policy advice to developing countries. They also help to promote trade and investment, and to resolve trade disputes.

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.

Here are some frequently asked questions about these organizations:

  • What is the World Bank?
    The World Bank is an international financial institution that provides loans to developing countries for capital programs. The World Bank Group comprises two development institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD provides loans to middle-income and creditworthy low-income countries, while IDA provides grants and low- or no-interest loans to the poorest countries.

  • What is the IMF?
    The IMF is an international financial institution that provides loans to countries to help them stabilize their economies. The IMF was founded in 1944 at the Bretton Woods Conference. The IMF’s main goal is to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. The IMF also provides technical assistance to member countries on a wide range of economic and financial issues.

  • What is the WTO?
    The WTO is an international organization that promotes free trade. The WTO was founded in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). The WTO’s main goal is to ensure that trade flows as smoothly, freely, and fairly as possible. The WTO does this by negotiating trade agreements, settling trade disputes, and monitoring national trade policies.

Here are some short answers to frequently asked questions about the role of these organizations in the world economy:

  • What is the role of the World Bank in the world economy?
    The World Bank plays a significant role in the world economy by providing loans to developing countries for capital programs. These loans help countries to build infrastructure, improve Education and healthcare, and promote economic growth.

  • What is the role of the IMF in the world economy?
    The IMF plays a significant role in the world economy by providing loans to countries to help them stabilize their economies. These loans help countries to repay their debts, avoid default, and restore economic growth.

  • What is the role of the WTO in the world economy?
    The WTO plays a significant role in the world economy by promoting free trade. The WTO does this by negotiating trade agreements, settling trade disputes, and monitoring national trade policies. Free trade helps to lower prices, increase competition, and boost economic growth.

  • What are the benefits of the World Bank, IMF, and WTO?
    The World Bank, IMF, and WTO provide a number of benefits to the world economy. These benefits include:

  • Increased economic growth: The World Bank, IMF, and WTO help to promote economic growth by providing loans, financing trade, and promoting free trade.

  • Reduced poverty: The World Bank, IMF, and WTO help to reduce poverty by providing loans, financing development projects, and promoting economic growth.
  • Improved living standards: The World Bank, IMF, and WTO help to improve living standards by providing loans, financing development projects, and promoting economic growth.
  • Increased trade: The World Bank, IMF, and WTO help to increase trade by negotiating trade agreements, settling trade disputes, and monitoring national trade policies.

  • Increased investment: The World Bank, IMF, and WTO help to increase investment by providing loans, financing development projects, and promoting economic growth.

  • What are the criticisms of the World Bank, IMF, and WTO?
    The World Bank, IMF, and WTO have been criticized for a number of reasons. These criticisms include:

  • The World Bank and IMF have been criticized for imposing harsh economic conditions on developing countries in exchange for loans.

  • The WTO has been criticized for promoting free trade at the expense of the environment and labor rights.
  • The World Bank, IMF, and WTO have been criticized for being undemocratic and unaccountable.

Despite these criticisms, the World Bank, IMF, and WTO continue to play a significant role in the world economy. These organizations provide a number of benefits to the world economy, including increased economic growth, reduced poverty, improved living standards, increased trade, and increased investment.

  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 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.

  2. The International Monetary Fund (IMF) is an international organization that was founded in 1945 after the Second World War. Its 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.

  3. The World Trade Organization (WTO) is an international organization that was founded in 1995. Its goal is to help countries work together to make trade fairer and more open. The WTO does this by providing a forum for countries to negotiate trade agreements, by setting rules for trade between countries, and by helping to resolve trade disputes.

  4. The United Nations (UN) is an international organization founded in 1945 after the Second World War by 51 countries committed to maintaining international peace and security, developing friendly relations among nations and promoting social progress, better living standards and Human Rights. Due to its unique international character, and the powers vested in its founding Charter, the Organization can take action on the issues confronting humanity in the 21st century, such as peace and security, Climate change, sustainable development, human rights, disarmament, terrorism, humanitarian and Health emergencies, Equality/”>Gender Equality, governance, food production, and more.

  5. The Group of 20 (G20) is an international forum for the governments and central bank governors of the world’s major economies. The G20 was established in 1999 as a response to the Asian financial crisis. The G20’s primary goal is to promote international financial stability. The G20 also works on a range of other issues, including Climate Change, trade, and development.

  6. The Organization for Economic Co-operation and Development (OECD) is an international organization that works to promote economic development and world trade. The OECD was founded in 1961 by 20 countries, including the United States, Canada, and most of Western Europe. Today, the OECD has 38 member countries, including most of the world’s developed economies.

  7. 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, replacing 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 poverty, to promote sustainable development, to promote and protect human and peoples’ rights, to promote Democracy, Good Governance and the Rule of Law, to promote peace and security on the continent, and to promote cooperation and integration among African countries.

  8. The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization comprising ten countries located in Southeast Asia. The ASEAN was founded in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Today, ASEAN has 10 member states, including Brunei, Cambodia, Laos, Myanmar, and Vietnam. The ASEAN’s goal is to promote economic growth, social progress, and Cultural Development in the region.

  9. The Non-Aligned Movement (NAM) is a group of 120 countries that are not formally aligned with any major power bloc. The NAM was founded in 1961 by 25 countries, including India, Egypt, and Yugoslavia. Today, the NAM has 120 member states, including most of the world’s developing countries. The NAM’s goal is to promote peace, independence, and development among its member states.

  10. The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 oil-producing countries. OPEC was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Today, OPEC has 13 member states, including Algeria, Angola, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and Venezuela. OPEC’s goal is to coordinate and unify the petroleum policies of its member countries in order to secure fair and stable prices for petroleum producers.

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