the political economy of international institution
DESCRIPTION
THE POLITICAL ECONOMY OF INTERNATIONAL INSTITUTION. INTERNATIONAL MONETARY FUND WORLD BANK WORLD TRADE ORGANIZATION. II WORLD WAR. RE-CONSTRUCTION. The economic and social destruction of countries which were effected II World War proved that the entailment of consortuim - PowerPoint PPT PresentationTRANSCRIPT
The economic and social destruction of
countries which were effected II World War
proved that the entailment of consortuim
arround the re-organized world.
Other hand countries which were called as
a winner of war want to increase their gains
by setting up new trade and financialarrangement under the collective
institutions.
The IMF was conceived in July 1944 in USA
Agreed on a framework for international economic
cooperation
They had been believed that such a framework was
necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s
The governments need to guarantor institution
supporting and organizing global economic dinamics
such as IMF does.
The International Monetary Fund (IMF) is an organization of 186 countries,
Working to foster global monetary cooperation
Secure financial
Stability
Facilitate international trade
Promote high employment and sustainable economic growth
Reduce poverty around the world
BASICAL GAME THEORY MAXIMIZING GROUP PAYOFF NOT
INDIVIDUAL
The IMF has played a part in shaping the global economy since
the end of World War II
The money comes from !The IMF's resources come mainly from the money that countries pay as
their capital subscription when they become
members
The IMF's fundamental mission is to help ensure stability in the international system
3 KEYS
1- Keeping track of the global economy and the economies of member countries
2- Lending to countries with balance of payments difficulties
3- Giving practical help to members
COUNTRY SURVEILLANCEIMF team of economists visits a country to assess economic and
financial developments and discuss the country's economic
and financial policies with government and central bank
officials
REGIONAL SURVEILLANCE involves examination by the IMF of policies pursued under currency unions including the
euro area likes the West African Economic and
Monetary Union.
Global surveillance Entails reviews by the IMF's global economic trends and
developments and based on the World Economic Outlook reports and the Global Financial Stability
Report, which covers developments, prospects, and policy issues in international
financial markets
BENEFICIARIES OF TECHNICAL ASSISTANCE
Technical assistance is one of the IMF's core activities. It is
concentrated in critical areas of macroeconomic policy where
the Fund has the greatest comparative advantage.
THE TYPES OF TECHNICAL ASSISTANCE
It takes different forms, according to needs, ranging
from long-term hands-on capacity building to short-notice policy support in a
financial crisis
PARTNERSHIP WITH DONORSContributions from bilateral and
multilateral donors are playing an increasingly important role in enabling the IMF to meet country needs in this
area, now financing about two thirds of the IMF's field delivery of technical
assistance
A country in severe financial trouble, unable to pay its international bills, poses potential problems for the international financial system, which the IMF was created to protect. Any member country, whether
rich, middle-income, or poor, can turn to the IMF for financing if it has a balance of payments need—that is, if it cannot find sufficient financing on affordable
terms in the capital markets to make its international payments and maintain a safe level of reserves.
The larger a country's economy in terms of output and the larger and more
variable its trade, the larger its quota tends to be.
For example, the world's biggest economy, the United States, has the
largest quota in the IMF.
Quotas, together with the equal number of basic votes each member has,
determine countries' voting power. They also help determine how much
countries can borrow from the IMF and their share in allocations of
SPECIAL DRAWING RIGHTS (DRS)
Countries pay 25 percent of their quota subscriptions in SDRs or major
currencies, such as U.S. dollars, euros, pounds sterling, or Japanese
yen. They pay the remaining 75 percent in their own currencies
The IMF holds a relatively large amount of gold among
its assets, not only for reasons of financial
soundness, but also to meet unforeseen contingencies.
The IMF holds 103.4 million ounces (3,217 metric tons) of gold, worth about $83 billion
as of end-August 2009, making it the third-largest official holder of gold in the
world.
If the IMF believes that its resources might fall short of
members' needs
For example, in the event of a major financial crisis it can
supplement its own resources by borrowing. It has had a
range of bilateral borrowing arrangements in the 1970s
and 1980s.
Currently it has two standing multilateral borrowing arrangements and one
bilateral borrowing agreement
The World Bank is a vital source
of financial and technical assistance to developing
countries around the world.
Basic mission is to fight poverty with
professionalism for lasting results and to help
people help themselves and their environment by
providing resources, sharing knowledge,
building capacity and forging partnerships in the public and private
sectors.
The World Bank, established in 1944, is headquartered in Washington, D.C. We
have more than 10,000 employees in more than 100 offices worldwide
Total member countries in each institution
The International Bank for Reconstruction and Development (IBRD) 186
The International Development Association (IDA) 169
The International Finance Corporation (IFC) 182
The Multilateral Investment Guarantee Agency (MIGA) 175
International Centre for Settlement of Investment Disputes (ICSID) 144
Since inception in 1944, the World Bank has expanded from a single institution to a closely associated group of five
development institutions
The World Bank's two closely affiliated entities the INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION
provide low or no interest loans (credits) and grants to countries that have unfavorable or no access to international credit markets
The money comes from !
FUND GENERATIONIBRD lending to developing
countries is primarily financed by selling AAA-rated bonds in the
world's financial markets.
LOANSCountries use investment
operations for goods, works and services in support of
economic and social development projects in a
broad range of economic and social sectors.
TRUST FUNDS AND GRANTS Donor governments and a broad
array of private and public institutions make deposits in trust funds that are housed at
the World Bank.
ANALYTIC & ADVISORY SERVICES
Poverty Assessments
Public Expenditure Reviews
Country Economic Reports
Sector Reports
Topics in Development
The Bank focuses on achievement of the
Millennium Development Goals that call for the
elimination of poverty and sustained development.
The goals provide us with targets and yardsticks for
measuring results.
Mission is to help developing countries and their people reach the goals by working
with our partners to alleviate poverty.
POOREST COUNTRIES
FRAIGLE STATES
ARAB WORLDS
MIDDLE INCOME COUNTRIES
SOLVING GLOBAL PUBLIC GOODS ISSUES
DELIVERING KNOWLEDGE
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.
The WTO is run by its member governments. All major decisions are made by the
membership as a whole, either by ministers (who meet at least once every two years)
or by their ambassadors or delegates (who meet regularly in Geneva). Decisions are
normally taken by consensus.
The GATT was the only multilateral instrument governing international trade from 1948 until the WTO was
established in 1995.Despite attempts in the mid 1950s and 1960s to create some
form of institutional mechanism for international trade.
GATT & WTO ROUNDs
GENEVAANNECY
TORQUAYGENEVA IIDILLION
KENNEDYTOKYO
URUGUAY DOHA
Name Start Duration Countries Subjects covered Achievements
Geneva April 1947 7 months 23 Tariffs Signing of GATT, 45,000 tariff concessions affecting $10 billion of trade
Annecy April 1949 5 months 13 Tariffs Countries exchanged some 5,000 tariff concessions
Torquay September 1950 8 months 38 TariffsCountries exchanged some 8,700 tariff concessions, cutting the 1948 tariff
levels by 25%
Geneva II January 1956 5 months 26 Tariffs, admission of Japan $2.5 billion in tariff reductions
Dillon September 1960 11 months 26 Tariffs Tariff concessions worth $4.9 billion of world trade
Kennedy May-64 37 months 62 Tariffs, Anti-dumping Tariff concessions worth $40 billion of world trade
Tokyo September 1973 74 months 102Tariffs, non-tariff measures,
"framework" agreementsTariff reductions worth more than $300 billion dollars achieved
Uruguay September 1986 87 months 123
Tariffs, non-tariff measures, rules, services, intellectual
property, dispute settlement, textiles, agriculture, creation of
WTO, etc
The round led to the creation of WTO, and extended the range of trade negotiations, leading to major reductions in tariffs (about 40%) and agricultural subsidies, an agreement to allow full access for textiles
and clothing from developing countries, and an extension of intellectual property rights.
Doha November 2001 141
Tariffs, non-tariff measures, agriculture, labor standards, environment, competition,
investment, transparency, patents etc
The round is not yet concluded.
Non-DiscriminationIt has two major components
the most favored nation rule, and the national
treatment policy.
Reciprocity It reflects both a desire
to limit the scope of free-riding that may arise
because of the MFN rule, and a desire to obtain
better access to foreign markets.
Transparency
Binding and Enforceable Commitments
The tariff commitments made by WTO members in
a multilateral trade negotiation and on
accession are enumerated in a schedule (list) of
concessions.
Safety ValvesIn specific circumstances,
governments are able to restrict trade.
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