This document describes regional institutions and complete knowledge on world bank and International Monetary Fund. It highlights their criticisms and how they were formed. Their functions have also been mentioned
Due to increase in globalization and the international trade many
international organizations have been set up so as to facilitate,
regulate, measure or finance international transaction. Such as
WTO- World trade Organization
UN- United Nation
IMF- International Monetary Fund
After thee World War II the world nations have believed in the value
of free trade.
GATT- The General Agreement on Tariffs and Trade was
established with a agreement to liberalize trade.
IMF- It was established to monitor the international
currency markets.
WB- It was established to restore the world economy
after the depression
Uruguay round of GATT negotiations began in 1986 which focused
on-
Services and intellectual property
Going beyond manufacturing goods to address trade issues
related to services and intellectual property.
The world trade organization
Aim of enforcement mechanism: makes it a policemen of
global trade rules.
The world encompassed GATT along with two sister organizations.
The general agreement on trade in services(GATS)
, It works to extend free trade agreement to services.
The agreement on trade related aspects of intellectual
property rights (TRIPS)
Working to develop common international rules for intellectual
property rights.
BRETTON WOODS
44 countries met in New Hampshire in 1944.
Countries agreed to peg their currencies to the US dollar for
34$/oz.
Agreed not to engage in competitive devaluation for trade
purposes and defend their currencies.
Weak currencies could be devalued up to 10% w/o approval
IMF and World Bank were created.
International Monetary Fund
It is an organization promoting international monetary
cooperation and providing temporary financial
assistance to countries with balance of payment
problems.
PRIMARY ACTIVITIES-
- Monitoring the world economy.
- providing technical assistance to developing countries.
- lending money to countries with financial difficulty.
Floating exchange rate system
The Jamaican agreement(1976) revised the IMF article of
agreement to reflect the new reality of floating
exchange rates.
- Floating rates acceptable.
- Gold abandoned as reserve asset.
Various exchange rates regime followed today.
IMF continues to help countries cope with
macroeconomics and exchange rate problems.
IMF current problems
IMF Purpose
- Ensure the stability of the international monetary
system- the exchange system and the international
payment that help a country’s citizen transact with one
another.
Three areas of surveillance. -
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