World Bank, IMF and WTO

Summary

This script discusses the origins and functions of the World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO). Established post-WW2, the World Bank aids development in low and middle-income countries through loans. The IMF promotes international monetary cooperation and provides economic policy advice. The WTO, formed in 1995, aims to liberalize trade and facilitate negotiations for trade agreements. Together, they address global economic challenges and promote trade.

Takeaways

• 🏛️ The World Bank was created post-World War 2 to help rebuild damaged parts of Europe and is now focused on fighting poverty in middle and low-income countries.
• 🌐 To become a member of the World Bank, a country must first join the International Monetary Fund.
• 💼 The World Bank offers long-term loans to governments for financing development projects and economic reforms.
• 🔒 The World Bank attaches conditions to loans to ensure economies are directed towards loan repayment.
• 📈 The International Monetary Fund (IMF) was also created in 1944 to promote international monetary cooperation and provide policy advice.
• 🌟 The IMF's main function is to help countries build strong economies, raise living standards, and solve balance-of-payments problems.
• 💡 The World Trade Organization (WTO) was established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT) from 1948.
• 🌍 The WTO aims to liberalize trade and is a forum for governments to negotiate trade agreements.
• 🔄 The WTO's system is designed to facilitate the free flow of trade between nations.
• 🔗 Both the IMF and the WTO are related to macroeconomics as they deal with trading rules between nations and businesses.

Q & A

What was the purpose of creating the World Bank after World War 2?

The World Bank was created to provide reconstruction assistance to the damaged parts of Europe after World War 2.

What is the primary function of the World Bank today?

The World Bank's main function today is to fight poverty by offering developmental assistance to middle-income and low-income countries.

How does a country become a member of the World Bank?

To become a member of the World Bank, a country must first join the International Monetary Fund and pay a subscription fee of 88, 99 percent to the IMF.

What type of loans does the World Bank offer to governments?

The World Bank offers long-term loans to governments for financing developmental projects and economic reforms.

What conditions does the World Bank attach to its loans?

The World Bank attaches conditions to its loans to ensure that the borrowing country's economy is structured towards loan repayment.

When and where was the International Monetary Fund (IMF) created?

The International Monetary Fund was created in July 1944 in Bretton Woods, New Hampshire, United States.

What is the main function of the International Monetary Fund?

The main function of the IMF is to promote international monetary cooperation, give policy advice, and provide capacity development support to help countries build and maintain strong economies.

What does the IMF do to solve balance-of-payments problems?

The IMF designs policy programs to solve balance-of-payments problems when sufficient financing on affordable terms cannot be obtained to meet net international payments.

When did the World Trade Organization (WTO) begin?

The World Trade Organization began on January 1st, 1995.

What is the main goal of the World Trade Organization?

The main goal of the WTO is to liberalize trade and facilitate negotiations for trade agreements among governments.

How are the World Bank and IMF related to macroeconomics?

The World Bank and IMF are related to macroeconomics by dealing with trading rules between nations and businesses, influencing economic policies and development.