The Imf, Wto, And World Bank

A: The World Bank (bank) and the International Monetary Fund (financial institution) have been largely responsible for lending money to developing countries in the era after decolonization.

Different organizations are formed worldwide but it is mostly their mandates that categorically define the role they play. Among the most recognized, organizations that follow under the control of United Nations get an upper hand and it’s particularly made possible by the powers and control these organizations possess. This article attempts to compare and contrast the United Nations Security Council with the World Bank drawing conclusions from their mandate, style of functioning, governance and organizational culture among the key elements considered. Although they have an international outlook, there are various features within the organizations that depict them as different while others reveal elements that they share and value in common.

The World Bank was established in 1944 and headquartered in Washington, DC, the World Bank was created from a single institution to a development of five institutions. It is a vital source of financial and technical assistance to developing countries around the world. It was created as a facilitator of post-war reconstruction and development and prevention of worldwide poverty. It has more than 10,000 employees located throughout 120 offices worldwide.

The World Bank, created in 1944, was made to provide assistance to poverty-stricken or financially unstable countries around the world. Although it originated as an amazing idea, today the World Bank sometimes causes more harm than benefit in the countries that it intends to assist ("International Monetary Fund and World Bank," n.d.). One example of this is the Chixoy Power Project the World Bank funded in Guatemala. In 1978, the project was started " with the intent of “bringing development” to Guatemala" (Russell, 2015). However, this project leads to one of the most horrific genocides in Guatemalan history.

During World War II, the Allies sought to reign in some of the chaos of international transactions. Problems, to that point, were myriad; currencies and economies were not well-equipped to handle the rapid globalization that was underway. Little regulation meant ample room for abuse, like aggressive devaluation of a country’s currency, along with the less nefarious but equally damaging shocks in the newly-interconnected markets. “Beggar thy neighbor” policies, most of them ultimately landing on Germany’s doorstep after World War I, played a major part in precipitating World War II.

The world bank has the authority and ability to lend to countries, if these countries want to borrow. Borrowing from the bank is an important way for low and middle income countries to strengthen their economy as well as their overall standard of living.

International Financial Institutions were created to help prevent national economic crises as well as repair broken economies that were damaged by war (International). Created in 1944 as a result of WWII, the World Bank and the International Monetary Fund seemed to have righteous purposes and would strengthen the global economy. However, many of the projects both institutions have funded to date have created further problems in the economies of developing countries. Specifically, the construction of the Chixoy dam, funded by the World Bank, left the nation of Guatemala with tragedy and loss rather than economic growth.

Angry protesting, political upset, governments falling, privatization failing, and money lost are a few outcomes that influence the public opinion on the World Bank, and its involvement in many underdeveloped countries. While the World Bank claims that reducing poverty across the globe is its foremost priority, many opponents believe that it is responsible for increasing poverty. The World Bank is a multifaceted organization that loans money to government around the world for development.

Belgium, Dominican Republic, and Israel are members of the International Monetary Fund (IMF), World Trade Organization (WTO) and World Bank. These organizations in their own right are trying to improve the economy by facilitating internationals trading (IMF) , reducing poverty around the world (IMF), ensuring that trading flows smoothly and freely (WTO) and providing financial advice to assist in economic advancement (World Bank). Countries that are members of the IMF, WTO and World Bank, in my opinion believe that working together , following the organizations guidelines, can improve the economy. Belgium works with other international and regional organizations, to encourage economic cooperation and assistance to developing countries. Belgium is a key provider of humanitarian, reconstruction, and development assistance in Africa, Afghanistan, and Syria. Belgium is also the host country of the European Union (EU) and North Atlantic Treaty Organization (NATO) and plays an important role in discussions between European foreign ministers and the Secretary of State.

The number of development banks has increased rapidly since the 1950s; they have been encouraged by the International Bank for Reconstruction and Development and its affiliates. The large regional development banks include the Inter-American Development Bank, established in 1959; the Asian Development Bank, which began operations in 1966; and the African Development Bank, established in 1964. They may make loans for specific national or regional projects to private or public bodies or may operate in conjunction with other financial institutions. One of

As a result of the inadequacies of the World Bank and IMF, Uganda today appears to be no better off today then as they were in the year(s) prior to acquiring the assistance in debt relief in 1998. According to Ana Eiras; “Despite such a monstrous display of resources, according to the index of economic freedom, the Bank’s money has done nothing to improve the economic freedom in recipient countries”. Erias goes on to make it clear that many of the country’s who have received assistance have seen no change or economic improvement and are just as poor as they were many years ago.

Here the International Monetary Fund and the International Bank for Reconstruction and Development, later divided into the World Bank and Bank for International Settlement, were established. To regulate the international policy economy these institutions become known as the Bretton Woods institutions and became operational in 1946. The IMF, founded to stabilize countries' currencies in relation to each other, holds money in trust, which member countries can borrow according to terms set by the institution. The World Bank instead gives more long-term loans and sells bonds to corporations and governments, which bind the issuer to pay the bondholder the amount of the loan plus interest. However, the countries taking advantage of the opportunity to borrow money to improve their affected economy are obliged to launch a set of policies, known as the Washington Consensus, which was first presented in 1989. The reforms introduced by the Institute for International Economics include "deregulation, privatization, currency devaluation, social spending cuts, lower corporate taxes, export driven strategies, and removal of foreign investment restrictions" . More, "these loans are only granted when the countries agree to the adoption to a comprehensive programme of macro-economic stabilization and structural economic reform."

The World Bank is a multi-national organization that operates in over 180 countries. Barriers such as connectivity, cultural differences, time zones, knowledge levels, and resources available exist for World Bank because they have clients in so many different locations around the world. World Bank has a hierarchal structure with a centralized headquarters in Washington, D.C and several more independent branches. Due to the operations limited by independent branches, client interactions were limited, communications needed improvement, and important business meetings were limited by the difficulties and expenses of worldwide travel.

(Study guide DVA1501 Unit 3:42) Study) mentioned that World Bank is one international organisation that focuses primarily on

In the year of 1327, Kind Edward III of England defaulted on his Italian debts. This caused the banks of Bardi and Peruzzi in Florence to collapse. Who would know that over 650 years later, the world would still have these types of problems? After World War II, the need for an organization like the IMF was finally realized. After the war, politicians and economists began to work on blue prints for a postwar world. They envisioned a liberal international economic order, based on stable world currencies and revived world trade. The International Monetary Fund (IMF) finally came into existence on December 27, 1945. On this date, twenty-nine