Essays on Regulation of Economic Activities by International Organizations - the World Bank, IMF and WTO Case Study

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The paper "Regulation of Economic Activities by International Organizations - the World Bank, IMF and WTO" is a good example of a finance and accounting case study.   In the year 1944, World noticed a major change at Bretton Woods conference: 730 delegates from 44 nations met in Bretton Woods, New Hampshire post World war II with the intent to organize international capital order. Three institutions came into existence named International Bank for Reconstruction and Development (IBRD), International Monetary Fund and General Agreement on Tariffs and Trade (GATT). In addition, a set system was placed to maintain the exchange rate.

These bodies were conceptualized to aid the growth of developing countries by assisting them with financial and technical assistance. Today, the World Bank has its operations in more than 100 countries worldwide. GATT was replaced by the World Trade organization in the year 1995. World trade organization supervises trading rules between nations. Today, it has more than 150 member nations. Over the last few decades, there has been an increasing pressure on the developing countries to open their economies. And they have done so, often at an enormous cost.

For some very poor nations, this amount has exceeded their annual budget. But, the results have been disappointing for most of them because there is not enough free trade for them. It has been found that developed nations are keen to export finished products to each other while restraining only raw materials purchase to the developing nations. Moreover, this import of raw materials and export of finished products results in higher tariffs on the finished goods supplied by the developed nations to the developing nations. The increasing gap between the economies has been a concern for the three Bretton Woods organizations.

Not meeting the desired aims and the persisting internal discrepancies within these organizations have attracted wide criticisms from analysts, activists and economies around the globe. Growing discontent within the underdeveloped economies has driven them to look for inferior options that inhibit their own and these organization’ s functioning. This essay is an effort to understand the functioning of these organizations and delineate the internal and external gaps in them if present. World Bank The World Bank is composed of two different institutions: International Bank for reconstruction and development (IBRD) and The International Development Association (IDA).

“ The IBRD aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses on the world's poorest countries” (The World Bank, 2011). They provide “ low-interest loans, interest-free credits and grants” to developing nations. In the last 20 years, the World Bank’ s focus had shifted from infrastructural projects to projects addressing issues of “ gender, community-driven development and indigenous people” (The World Bank, 2007, p. 3).   International Monetary Fund It was not until 1950 that the non-dollar countries (majorly European) were in a position to make payments to the IMF.

IMF released its first payments in the year 1958. International Monetary Fund was established to “ encourage international co-operation to cope with recession and protectionism on a world scale and to discourage individual countries from pursuing policies that would beggar their neighbours and eventually themselves” (Bird, 1995.p. 1).

References

Bird, G. (1995). IMF Lending to Developing Countries: Issues and Evidence. New York: Routledge.

Buckley, R.M & Buckley, T.D (2010). Discontent with The World Bank’s excursion into Economic Geography: Lions and Butterflies once more?. Retreived May 28, 2011, from http://www.gpia.info/files/u706/Buckley_and_Buckley_2010-04.pdf.

Global Unions (2007), The Role of IFIs in Supporting Decent Work and Countering the Risks of Financial Globalization, Retrieved May 24,2011, from http://www.ituc-csi.org/IMG/pdf/statement.imfwb.1007.pdf.

Goldman, Michael (2005). Imperial Nature: The World Bank and Struggles for Social Justice in the Age of Globalization. New York: Yale University Press, pp. 52–54.

Goldstein, J. L., & Steinberg, R. H. (2008). Negotiate or Litigate? Effects of WTO Judicial Delegation on U.S. Trade Politics. Law and Contemporary Problems, 71(2), 257.

Joyce, J.P (2007) . The Globalizers: The IMF, the World Bank, and Their Borrowers. Ethics & International Affairs. 21(4).

Kenwood, A. G., & Lougheed, A. L. (1999). The Growth of the International Economy 1820-2000: An Introductory Text. London: Routledge.

The World Bank (2007). A Guide to the World Bank. World Bank. Washington, DC. Page Number: 3.

The World Bank (2011). About us. Retrieved May 26,2011, from http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,pagePK:50004410~piPK:36602~theSitePK:29708,00.html

WTO (1998). Statement by Mr. Rubens Ricupero, Secretary-General of UNCTAD on behalf of the Secretary-General of the United Nations. Retrieved May 25,2011

http://www.wto.org/english/thewto_e/minist_e/min98_e/anniv_e/ricupero_e.htm

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