International Organizations that Facilitate Trade
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Start for FreeThe contemporary world we live in is urged to deal with constant environmental, political, social, and economic changes. People, however, find it hard to keep up with such fast-paced movements on their own. Hence, it is their very nature to look for a centralized, somewhat consistent, way of handling various matters around the globe. Dating back to the end of World War II, International Organizations help nations serve to find shared solutions to shared problems.
One of the most reputable international bodies of today is the World Bank.
Don’t be misled by its name – this is not a conventional bank. It is made up of two distinct institutions which work in collaboration to promote sustainable economic growth on a global scale. These are the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
The World Bank Group strives against extreme poverty and promotes shared prosperity. To that end, it provides low-interest loans, advisory services, and innovative knowledge-sharing to middle- and low-income countries around the world. In addition, it actively funds different organizations that fight health issues, climate change, and violence in conflict regions.
For example, IBRD lent USD500 million to the Egyptian government in 2010. Its main objective was to boost the involvement of the private sector in banking, along with enhanced accessibility of resources to locals. Eventually, the project was a success! As a result, in 2011, institutions we able to dedicate 2.9 million US dollars to public workers, retirees, and those in need, as compared to only 0.6 million iback n 2008. Feel free to take a look at other exciting project at www.worldbank.org.
The International Monetary Fund (IMF) is another well-known international organization. During the Great Depression in the 1930’s the financial universe fell apart. Countries shut their borders for imported goods and markets plummeted. Shortly after, the IMF was brought to life. Ever since, it has been promoting global monetary cooperation, exchange rate stability, and balanced growth of international trade. In addition, it assists in the establishment of a multilateral system of payments. Together with governments around the world, the IMF works to modernize countries’ economic policies and institutions, stabilize their currencies, and oversee the international monetary system. Some perceive it as the protection shield of currencies.
The International Monetary Fund has 189 member states. The smallest one to join the organization is Tuvalu, a beautiful country in Polynesia. Depending on their economic characteristics, each and every participant makes mandatary annual financial contributions which collectively bring into the Fund about 650 billion dollars every year. The money is used for various initiatives that aim to prevent severe financial crises. Very often the IMF provides loans to countries experiencing balance of payment deficit. Further information is available at www.IMF.org.
Lastly, we turn to the complex world of the World Trade Organization.
This is the sole international institution that regulates trade between nations. Its main goal is to ensure that the exchange of goods and services between countries goes smoothly and predictably. In other words, it is the watch dog of cross-border trades. One of the main functions of WTO is to help with the resolution of any trade disputes between nations. The World Trade Organization has 164 member countries who work together to facilitate free trade for the benefit of all nations. Since we are all consumers, what WTO does affects us directly. That’s because the prices we pay for food, clothes, beverages, or furniture are all determined by tarrif agreements and trade policies between nations. You can find some more interesting facts about the organization’s history and agenda on www.wto.org
On a final note, you should bear in mind that, as effective as they can be, such organizations will never be complete. The dynamcis of the economic, social, and political environment calls for an ongoing improvement in procedures, thus, their curriculums must be reviewed regularly.
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