Transcript THE POLITICAL ECONOMY OF INTERNATIONAL INSTITUTION

RE-CONSTRUCTION
GUARANTEE
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 financial
arrangement 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,
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Working to foster global monetary cooperation

Secure financial
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
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
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
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.
COUNTRY SURVEILLANCE
IMF 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
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 DONORS
Contributions 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
Since inception in 1944, the World Bank
has expanded from a single institution
to a closely associated group of five
development institutions
Total member countries in each institution
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The International Bank for Reconstruction and Development (IBRD) 186
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The International Development Association (IDA) 169
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The International Finance Corporation (IFC) 182
The Multilateral Investment Guarantee Agency (MIGA) 175
International Centre for Settlement of Investment Disputes (ICSID) 144
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 GENERATION
IBRD lending to developing countries is
primarily financed by selling AAA-rated
bonds in the world's financial markets.
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.
LOANS
Countries 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.
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
GENEVA
ANNECY
TORQUAY
GENEVA II
DILLION
KENNEDY
TOKYO
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
Tariffs
Countries 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
102
Tariffs, non-tariff measures,
"framework" agreements
Tariff reductions worth more than $300 billion dollars achieved
Uruguay
Doha
September 1986
November 2001
87 months
123
Tariffs, non-tariff measures, The round led to the creation of WTO, and extended the range of trade
rules, services, intellectual
negotiations, leading to major reductions in tariffs (about 40%) and
property, dispute settlement,
agricultural subsidies, an agreement to allow full access for textiles
textiles, agriculture, creation of
and clothing from developing countries, and an extension of
WTO, etc
intellectual property rights.
141
Tariffs, non-tariff measures,
agriculture, labor standards,
environment, competition,
investment, transparency, patents
etc
The round is not yet concluded.
Non-Discrimination
It 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 Valves
In specific circumstances,
governments are able to
restrict trade.
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