THE POLITICAL ECONOMY OF INTERNATIONAL INSTITUTION

1. THE POLITICAL ECONOMY OFINTERNATIONAL INSTITUTION INTERNATIONAL MONETARY FUND WORLD BANK WORLD TRADE ORGANIZATION

2. II WORLD WAR RE-CONSTRUCTION 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. GUARANTEE

3. WHAT IS THE IMF 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.

4. IMF 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

5. 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

6. ORGANIZATION & FINANCEThe IMF has a management team and 17 departments that carry out its country, policy, analytical, and technical work. One department is charged with managing the IMF's resources. This section also explains where the IMF gets its resources and how they are used. The money comes from ! The IMF'sresourcescome mainly from the money that countries pay as their capital subscription when they become members

7. KEY FACTORS OF CREATING POLITICAL POWER 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

8. A-SURVEILLANCEThe IMF's regular monitoring of economies and associated provision of policy advice is intended to identify weaknesses that are causing or could lead to financial or economic instability 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 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 unionsincluding the euro arealikesthe West African Economic and Monetary Union.

9. B-TECHNICAL ASSISTANCEThe IMF shares its expertise with member countries by providing technical assistance and training in a wide range of areas, such as central banking, monetary and exchange rate policy, tax policy and administration, and official statistics 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

10. C-LENDING 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 maintaina safe level of reserves.

11. QUOTAS 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

12. GOLD 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.

13. Borrowing Arrangements If the IMF believes that its resources might fall short of members' needs For example, in the event of a major financial crisisit 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

14. WORLD BANK 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

15. 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 • 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

16. DEVELOPING AND CONTROLLING The World Bank's two closely affiliated entitiesthe 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

17. The money comes from ! • ANALYTIC & ADVISORY SERVICES • Poverty Assessments • Public Expenditure Reviews • Country Economic Reports • Sector Reports • Topics in Development 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.

18. CHALLANGE & SIX STRATEGIC THEMES The Bank focuses on achievement of the Millennium DevelopmentGoals 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 reachthe goals by working with our partners to alleviatepoverty. POOREST COUNTRIES FRAIGLE STATES ARAB WORLDS MIDDLE INCOME COUNTRIES SOLVING GLOBAL PUBLIC GOODS ISSUES DELIVERING KNOWLEDGE

19. WORLD TRADE ORGANIZATION 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.

20. 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.

21. General Agreement on Tariffs and Trade (GATT) HISTORICAL PROCEDURE OF INTERNATIONAL TRADE The GATT was the only multilateralinstrument 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

23. PRINCIPLES OF TRADE SYSTEM Non-Discrimination It has two major componentsthe most favorednation rule, and the national treatmentpolicy. Reciprocity It reflects both a desire to limit the scope of free-ridingthat 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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