INTERNATIONAL MONITORY FUND,

WORLD BANK-INTERNATIONAL

TRADE ORGANIZATIONS

INTERNATIONAL MONITORY FUND

“It 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 and reduce

poverty” .

The IMF is the most detailed attempt to organize the

conduct of international monetary affairs.

Five largest shareholders: United States, Japan, Germany, France, United Kingdom.

The IMF was created to support orderly international currency exchanges and to help nations having balance of payment problems through short term loans of cash.

Its headquarters are in Washington, United States.

The International Monetary Fund was conceived in July 1944 originally with 45 members and came into existence in December 1945 when 29 countries signed the agreement

IMF started to make service with IBRD in 1947.

The IMF works to improve the economies of its member countries

HISTORY

The International Monetary Fund Was created in 1944, at

the Bretton Woods conference to prevent the kinds of chain

reaction in the economic system that caused world currencies

to collapse like in the Great Depression of the 1930s.

IMF started to make service with IBRD (international bank

of reconstruction and development) in 1947.

The IMF was created to support orderly international

currency exchanges and to help nations having balance of

payment problems through short term loans of cash.

Bretton wood agreement was contracted in 1944 and

IMF was created in 1946.

The Bretton Woods system of monitory management

established the rules for commercial and financial relations

among the world's major industrial states in the mid-20th

century. The Bretton Woods system was the first example of a

fully negotiated monetary order intended to govern monetary

relations among independent nation-states.

BRETTON WOODS SYSTEM

ABOUT IMFIMF headquarters is in Washington D.C , U.S.A

China, Russia, and Saudi Arabia have their own seats on

the Board.

16 other Executive Directors are elected for two year terms

by groups of countries, known as “Constituencies”.

Total quotas of $312 billion; outstanding loans of $71 billion

to 82 countries (According to the report of August 31, 2005).

.

Focusing on its core macroeconomic and financial areas of responsibility.

Working in a complementary fashion with other institutions established.

Collection and allocation of reserves.

Rendering advice to member countries on their international monetary affairs.Promoting research in various areas of international economics and monetary economics.

Providing a forum for discussion and consultation among member countries. Being in the center of competence.

ROLE OF IMF

IMF promote international monetary cooperation .

expansion and balanced growth of international trade.

IMF promote exchange rate stability .

help establish multilateral system of payments and eliminate foreign exchange restrictions.

IMF make resources of the Fund available to members.

IMF can make the price of foreign money to be safe.

IMF can solve the problem of countries that doesn’t want to allow the foreign money to make their currency’s value higher.

PURPOSES OF IMF

India and the IMF has a positive relationship. The IMF has

provided financial assistance to India, which has helped in

boosting the country's economy.

The IMF praised the country for it was able to avoid the

Asian Financial Crisis in 1999 and was also able to maintain

the average rate of growth of its economy.

The Managing Director of International Monetary Fund

Rodrigo De Rato visited India in May 2005.

INDIA AND THE IMF

In 2005, the IMF said that the budget of India is very positive

for it points that the economy of the country will grow at the

rate of 6.7%.

International Monetary Fund said that the reasons behind the

economy growth of India are that the RBI has been able to

control inflation and has also handled its monetary policies

very skillfully.

The IMF has suggested that India can become a financial

super power by bringing in more reforms in its economic

policies that will increase its growth rate to 8%.

WORLD BANK

The world bank is an international organization dedicated to

provide Financing, Advice and research to developing

nations to aid their economic advancements

It provides loans to the developing countries for capital

advancement.

The world bank focuses to reduce the poverty. The bank’s

decision must be guided by a commitment to promote

foreign investment, trade and enhance the capital

investment.

The world bank was created at the end of the World War II.

The world bank is one of the four institutions created at the

Breton Woods conference, in 1944.

Delegates from many countries attended the conference,

the most powerful one is UK and USA

Traditionally the world bank is leaded by a US citizen

The Bank functions as an international organization that

attempts to fight poverty by offering developmental

assistance to middle and poor-income countries.

HISTORY

The bank was providing the loans for the reconstruction and

development of needy countries.

France was the first country to receive loan,

From 1968 to 1980, the bank concentrated on meeting the

basic needs of people in the developing world.

In late 1980’s a report by UNICEF tells that the world bank

were responsible for the "reduced health, nutritional and

educational levels for tens of millions of children in Asia, Latin

America, and Africa".

From 1989 till present World Bank policy changed in

response to criticism from many groups.

First president: Eugene Meyer

Present president: Jim Yong Kim

Managing director: Caroline Anstey, Sri Mulyani Indrawati

Headquarters: Washington, D.C.

Employees and offices: more than 9,000 employees in more

than 100 offices worldwide

GENERAL INFORMATION:

*To fight poverty with passion and professionalism for lasting results.

*To help people help themselves and their environment by providing

resources, sharing knowledge, building capacity, and forgoing

partnerships in the public and private sectors.

*To be an excellent institution able to attract, excite, and nurture

diverse and committed staff with exceptional skills who know how to

listen and learn.

MISSION STATEMENT

There are total of 188 member countries. Some of them are as follows

MEMBER COUNTRIES

The World Bank was established to promote long-term

foreign investment loans on reasonable terms.

To assist in the reconstruction and development, restoration

and reconversion of destroyed economies or nations etc.

To promote private investment

Investing in people, particularly through basic health and

education.

Focusing on social development, inclusion governance, and

institution-building as key elements of poverty reduction.

OBJECTIVES

Strengthening the ability of the governments to deliver

quality services, efficiently and transparently.

Protecting the environment.

Supporting and encouraging private business

development.

Promoting reforms to create a stable macroeconomic

environment, conducive to investment and long-term

planning

To arrange the loans made or guaranteed by it in relation to

international loans through other channels so that the more

useful and urgent projects, large and small alike, will be dealt

with first.

To conduct its operations with due regard to the effect of

international investment on business conditions in the

territories of members

To promote the long-range balanced growth of

international trade

World Bank performs the following functions:

*Granting reconstruction loans to war devastated countries.

*Providing loans to governments for agriculture, irrigation, power, transport, water

supply, educations, health, etc.

*Providing loans to private concerns for specified projects.

*Promoting foreign investment by guaranteeing loans provided by other

organizations.

*Providing technical, economic and monetary advice to member countries for

specific project

*Encouraging industrial development of underdeveloped countries by promoting

economic reforms.

*Granting developmental loans to underdeveloped countries.

FUNCTIONS

1. General Progress:

(i) The Bank's membership has increased from the initial number of 30 countries to 68 countries in 1960 and to 151 countries in 1988.

(ii) In 1960, the Bank approved loans worth $ 659 million which went up to $ 14,762 million in 1988.

2. Lending Operations:

IBRD has granted loans worth $155049 million till June 1988

22% for energy, 21% for agriculture development, 18% for transportation, 10% for industry and small scale enterprises.

ACHIEVEMENTS

3. Term Loans:

The Bank grants medium and long-term for reconstruction and development

purposes to the member countries depending upon the estimated useful life

of the equipment or plant financed.

4. Loans for Reconstruction:

In the initial years of its establishment, the World Bank's loans were mainly

directed to the European countries for financing their programs of

reconstruction. The Bank provided loans worth about $ 5, 00 million for

reconstruction purposes.

5. Traditional Development Loans Policy:

The traditional development loan policy of the Bank has been to help the

member nations to strengthen the foundations of their economies for rapid

economic development.

6. New Loan Strategy:

(i) The amount of agricultural loans has increased

(ii) The bank now also takes interest in the activities of the

development of rural

7. Assistance to Underdeveloped Countries:

The following are the main aspects of Bank's assistance to the

underdeveloped countries

(i) Bulk of the Bank's financial assistance has been given to the

underdeveloped countries for the promotion of development.

(ii) Through its 'third window", the Bank has made available

loans to the underdeveloped countries at tower interest rates.

(iii) The Bank organizes meetings of creditor countries for

extending assistance to the developing countries. Aid India

Club is one such example.

(iv) The Bank also provides technical assistance to the

developing countries by making available training facilities

through its various institutions.

Agriculture and Rural

Development

Economic policy

Education

Energy

Environment

Financial sector

Health, nutrition and

population industry

Information, computing and

telecommunication

Law and justice

Private sector

Social protection

Trade

Water resources

Water supply and sanitation

AREA OF OPERATION

NEED OF WORLD BANK

BUILD CAPACITY

CREATE INFRASTRUCTU

RE

DEVELOP FINANCIAL

SYSTEM

COMBAT CORRUPTION

The International Bank for Reconstruction and Development (IBRD)

• The International Development Association (IDA)

• The International Finance Corporation (IFC)

• The Multilateral Investment Guarantee Agency (MIGA)

• The International Centre for the Settlement of Investment Disputes

(ICSID).

CONSISTS OF FIVE ORGANIZATIONS

INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENT

• The International Bank for Reconstruction and Development

(IBRD) provides loans and development assistance to middle

income countries in Latin America, Asia, Africa and Eastern

Europe.

• IBRD gets most of its funds by selling bonds in international

capital markets.

The International Development Association (IDA) plays an important role in our mission to reduce poverty.

Its support is focused on the poorest countries, to which it provides interest-free loans and grants. IDA depends on contributions from its wealthier member countries (includingsome developing countries) for most of its financial resources.

INTERNATIONAL DEVELOPMENT ASSOCIATION

INTERNATIONAL FINANCE CORPORATION

The International Finance Corporation (IFC) promotes growth in the developing world by financing private-sector investments and providing technical support and advice to governments and businesses.

In partnership with private investors, IFC provides loans and equityfinance for business ventures in developing countries

The Multilateral Investment Guarantee Agency (MIGA) encourages

foreign investment in developing countries by providing guarantees to

foreign investors against loss caused by noncommercial risks.

MIGA also provides technical support to help developing countries

promote investment opportunities and uses its legal services to

reduce possible barriers to investment

MULTILATERAL INVESTMENT GUARANTEE AGENCY

The International Centre for the Settlement of Investment Disputes

(ICSID) provides facilities for settling investment disputes between

foreign investors and their host countries.

INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTES

World bank provides the largest external funds for education.

It is a big support in reducing poverty.

It provides fund for biodiversity projects.

It helps to bring clean water, electricity, and transport to poor

people.

It helps in controlling emerging conflicts.

5 PRIORITIES OF WORLD BANK

INTERNATIONAL TRADE ORGANIZATIONS

The International Trade Organization, or ITO was the

proposed name for an international institution for the

regulation of trade.

A prospective organ proposed by the Bretton

Woods Conference to establish rules and

regulations for international trade

The ITO charter was agreed on at the UN

Conference on Trade and Employment in March

1948, but was never ratified by the US Senate,

thus never coming into existence

Roberto Azevedo

159  members on 2 March 2013 (with dates of membership).

GATTThe General Agreement on Tariffs and Trade (GATT), the predecessor of

WTO, was born in 1948 as result of the international desire to liberalize

trade.

The GATT was transformed into a World Trade Organization (WTO) with

effect from January, 1995.

India is one of the founder members of the IMF, World Bank, GATT and

the WTO.

ADVANTAGES OF INTERNATIONAL TRADE

• Leads to more efficient resource allocation and lower cost per unit of

output as the market becomes bigger and broader to exercise

economies of scale, etc.

• It helps to widen the range of choice of goods or products

• It allows the transfer of knowledge, technologies and information

between trading partners

• It enables the countries to specialization which increases the world

output and standard of living

It increases the need to become efficient and effective in the

production process because of competition

• It stimulates research and development policies and more rapid

adoption of new technology to reduce cost of production

DISADVANTAGES OF INTERNATIONAL TRADE

• One may need to wait for long term gains

• Hiring professional staffs to launch international trade is timely and

costly to do

• Modifying product or packaging

• Develop new promotional material

• Incur added administrative costs

• Dealing with special licenses and regulations

• Apply for additional financing

The Uruguay Round

*Uruguay Round (UR) is the name by which the eighth Round of the

multilateral trade negotiations (MTNs) held under the auspices of the

GATT is popularly known because it was launched in Punta del Este in

Uruguay, a developing country, in September 1986.

*The UR sought to broaden the scope of MTNs far wider by including

new areas such as:

• Trade in services

• Trade related aspects of intellectual property (TRIPs)

• Trade related investment measures (TRIMs).