IMF, WTO and World Bank: Role and Objectives

This essay aims to analyse and measure the assignments of three international institutes namely the International Monetary Fund (IMF), the planet Bank and the planet Trade Company (WTO). These organisations play a pivotal role in global health and their legitimacy and accountability have seduced a lot of issue and criticism. In the essay, the functions, functions and organisation of these three institutes would be mentioned followed by critique relating to presentation, affect and effect on global health/wellbeing and finally concluding with a crucial evaluation and considerations of possible alternatives and advancements.

The International Monetary Fund (IMF) was created in July 1944 out of the Bretton Woods Convention in New Hampshire, U. S. A It started its functions on the very first of March 1947 in Washington D. C. Its goal was to rebuild the international current economic climate and stop the economic turmoil such as the Great Depression. The ideas of Harry Dexter White of USA and the English economist John Maynard Keynes were pivotal in the establishment of the IMF. They suggested the need for a co-operative company that would oversee the international financial system and also be in charge of promoting a balanced global economical trade. Regular membership to the IMF is voluntary and a country must deposit a "quota subscription" which can determine the voting vitality of that country and also how much that country could borrow from the account in terms of financial meltdown. The best decision-making body in the finance is the Panel of Governors who are not mixed up in daily jogging of the Fund plus they meet once annually. Presently with a regular membership of 187 countries the IMF provides systematic mechanisms for forex transactions in order to promote well balanced global financial trade. The IMF advises and targets member countries' macroeconomic policies to ensure its wealth and that of its customers are safeguarded. It can surveillance of the member countries plans to ensure they don't have a negative influence on the exchange rates and trade markets. The IMF also does periodic consultations to check on member countries overall monetary positions and advises them how to improve their current economic climate. The IMF also provides loans to countries that contain issues with their balance of obligations. The loans have conditions attached to them and the customer countries must put into practice the monetary reforms as dependant on the IMF. These structural modification programmes are designed to help the countries to get over the problems of their balance of payments.

The World Bank or investment company, also a product of the Bretton Woods Discussion was established in 1944 to are likely involved in the reconstruction of post-war Europe. It has a similar governance structure as the IMF, with a mother board of Governors with representatives from all member claims as the highest decision-making body and the voting system is equivalent to that of the IMF. America retains the largest show of votes and the leader is also by tradition a US resident, (Peet, 2003).

The World Lender group involves five organisations, the International Bank for Reconstruction and Development (IBRD), the International Fund Corporation (IFC), the International Development Association (IDA), the International Centre for the Settlement of Investment funds Disputes (ICSID) and the Multilateral Investment Promise Firm (MIGA). The IBDR and the IDA will be the two that are usually referred to as the World Bank or investment company and for the purpose of this essay we will limit our focus on the two, ( http://go. worldbank. org/3QT2P1GNH0). The IBDR provides permanent loans and aid for economic development. The IBDR is financed from the deal of bonds on international fund marketplaces and fro interest gained from loan repayments, (http://go. worldbank. org/LAG4BZ1VD1). IDA targets presenting credits and grants to poor countries. These grants are interest free but have a 0. 75 percent administrative demand per annum. These grants are aimed to aid programmes of economic growth, reduce inequalities and improvement of living conditions. IDA is funded from contributions from richer member countries and from income acquired from IBDR funding, (http://go. worldbank. org/7ARHOU1WK0). Like the IMF, the entire world Loan company has conditions attached its lending options.

The bank will not only provide loans but also provides complex assistance on development issues. It offers knowledge through education and analytical services. Since its establishment, the globe Bank is becoming more engaged in issues of institutional and policy change in borrowing countries. The lender defines what will be the best development procedure on different assignments at a particular time. The Bank identifies its quest as minimizing global poverty and also considering the environmental issues by assisting member countries through guaranteeing economic growth by "capacity building" and helping to create "infrastructure", ( http://go. worldbank. org/3QT2P1GNH0).

Although the IMF and the globe Loan company are two independent institutions, sometimes the two are often confused as one or used interchangeably by many people. Both products of the Bretton Woods meeting face a whole lot of criticism on a number of issues but mainly centred on the methods in formulating their guidelines. The governance of the two establishments is dominated by the industrialised countries mainly the G8 whom because of the voting power work without much discussion with poor /producing countries who are under represented in both institutes therefore they hold little voting power to have the ability to influence change in the policing. Critiques of the World Bank or investment company and the IMF have accused them of promoting the top-down procedure in development which has made them to be regarded as the experts in neuro-scientific financial regulation and economic development. Their prescriptive rules are seen by many as in a position to undermine or eliminate choice perceptions on development to the benefit for the two.

The IMF and the entire world Bank's policies experienced negative economic and social influences on many countries that contain had financial assistance from them especially the growing countries. They impose conditions on the loans predicated on what is termed the "Washington Consensus" which is criticised by many as a neoliberalist approach of trade liberalisation and development, investment and the financial sector, deregulation and the privatisation of nationalised market sectors, conditions that are not flexible to individual countries circumstances and the prescriptive recommendations by the globe Bank and the IMF fail to address the economic problems within countries thereby promoting large global monetary inequalities. While it is argued that every individual country is responsible for its own public and economic procedures, national policies are overridden by the conditions of the structural modification programmes thereby leaving such countries indirectly burning off their governance to the entire world Standard bank or the IMF, ( ). The prescriptive character of the structural changes has became failing to address the economic problems within countries departing them in serious financial and financial problems which many neglect to recover from.

The World Lender has been criticised for they types of tasks it funds a lot of which are thought to have social and environmental implications for the damaged areas, eg. . . . . . Its focus on privatisation has resulted in states sacrificing control of providing essential goods and services such as health care and education leading to the collapse of such services.

The World Trade Company (WTO) was proven in 1995 as a development to the previous General Agreement on Tariffs and Trade (GATT) which was proven in 1947 after failed tries to establish an International Trade Organisation that could regulate trade. The thought of the ITO was discussed at the Bretton Woods Seminar as essential to supplement the IBDR and the IMF. Because of the mother nature of the regulations of the ITO, the US was not ready to commit itself to operate guidelines where each member condition acquired the same voting vitality hence efforts to determine the ITO failed, ( ). The WTO's function is to promote free and reasonable trade between member state governments with a view of promoting monetary prosperity and adding to international peace. This achieved through the supervision of trade contracts and performing a forum for trade discussions, helping to settle trade disputes, looking at national trade procedures, providing assist with producing countries in trade insurance plan issues through technical assistance and training programs and cooperating with other international organisations such as the IMF and the World Bank or investment company, (www. wto. org).

Unlike the IMF and the World Loan provider, the WTO is a far more member motivated organisation where all major decisions are made by member states by reaching a consensus and the Secretariat has very limited capabilities. The WTO performs a one country one vote system. People of the WTO consent to abide by the rules of the organisation.

Although the WTO appears to be a more democratic company, its critiques see it as a more closed organisation where many conferences are casual. These informal meetings are necessary before discussions reach the more formal levels before a consensus can be reached between member countries. This boosts concerns over the transparency of the company. Although all member areas are formally identical, the WTO is to a huge extent controlled by certain sets of states while others have not a lot of influence and capacity to keep up currently with all issues.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)