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.

Outlines

00:00

🌎 Introduction to the World Bank, IMF, and WTO

The script introduces the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO). It explains that these institutions were established post-World War II to address economic challenges and promote global cooperation. The World Bank was created to provide reconstruction assistance to war-torn Europe and now focuses on fighting poverty by offering developmental aid to low and middle-income countries. To become a member, a country must join the IMF and pay a subscription fee. The IMF was established to foster international monetary cooperation, offering policy advice and support to help countries maintain strong economies. The WTO facilitates trade liberalization and serves as a platform for governments to negotiate trade agreements, aiming to ensure trade flows as freely as possible. These organizations are interconnected through their roles in shaping macroeconomic policies and trade rules between nations.

Keywords

💡World Bank

The World Bank is an international financial institution that provides financial and technical assistance to developing countries for the purpose of promoting economic development and reducing poverty. In the video, it is mentioned as being created after World War 2 to help rebuild damaged parts of Europe and is now focused on offering developmental assistance to middle and low-income countries.

💡International Monetary Fund (IMF)

The IMF is an international organization that aims to stabilize the international monetary system. It was established in 1944 to promote international monetary cooperation and provide policy advice. The video explains that the IMF's main function is to help countries build strong economies and raise living standards, offering solutions to balance-of-payments problems.

💡World Trade Organization (WTO)

The WTO is a global organization that deals with the rules of trade between nations. It is mentioned in the video as being established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT), with the aim of liberalizing trade and making it flow as freely as possible.

💡Bretton Woods

Bretton Woods refers to the location in New Hampshire, United States, where the IMF and World Bank were established in 1944. The video uses this term to mark the historical origin of these institutions and their role in shaping the post-war economic order.

💡Allied nations

The Allied nations were the countries that were part of the alliance against the Axis powers during World War 2. The video mentions the Allied nations, including the U.S. and the United Kingdom, as the creators of the World Bank to help rebuild war-torn Europe.

💡Middle-income countries

These are countries with a per capita income that is between that of low-income and high-income countries. The World Bank's role, as discussed in the video, is to provide developmental assistance to middle-income countries, helping them to grow and reduce poverty.

💡Low-income countries

Low-income countries are those with a low Gross National Income (GNI) per capita. The video explains that the World Bank's mission includes offering assistance to these countries to help them develop their economies and improve living standards.

💡Developmental assistance

Developmental assistance refers to the financial aid provided by developed countries or institutions to developing countries for economic development. The video highlights that the World Bank's primary function is to fight poverty by offering this kind of assistance.

💡Economic reforms

Economic reforms are changes made to a country's economic policies or structures. The video mentions that the World Bank provides long-term loans to governments for financing economic reforms, which are intended to improve the economy and ensure loan repayment.

💡Balance-of-payments problems

Balance-of-payments problems occur when a country's spending on foreign goods, services, and financial assets exceeds its income from these sources. The IMF, as explained in the video, helps countries address these issues by designing policy programs.

💡General Agreement on Tariffs and Trade (GATT)

The GATT was an international agreement on trade policy that preceded the WTO. The video mentions it as the system that provided the foundation for the WTO, which is focused on liberalizing trade.

Highlights

Introduction to the World Bank, International Monetary Fund, and World Trade Organization.

Historical context of World War 2 and the creation of the International Bank for Reconstruction.

The World Bank's evolution from the International Bank for Reconstruction to its current form.

The World Bank's mission to fight poverty through developmental assistance.

Membership requirement of joining the International Monetary Fund.

Subscription fee of 88, 99 percent to the International Monetary Fund for membership.

The World Bank's operation through long-term loans for economic reforms.

Conditions attached to World Bank loans for ensuring economic stability and loan repayment.

The International Monetary Fund's creation in Bretton Woods, New Hampshire.

The IMF's role in promoting international monetary cooperation.

IMF's function to provide policy advice and capacity development support.

IMF's approach to solving balance-of-payments problems.

The establishment of the World Trade Organization in 1995.

The WTO's role in liberalizing trade and negotiating trade agreements.

The WTO's objective to facilitate the free flow of trade.

The relationship between the two organizations and macroeconomics.

The significance of trading rules between nations and business in macroeconomics.

Transcripts

hello teachers and classmates with

working good afternoon or good not

depending in which our dear watch me

sleep today we're going to talk about

the World Bank the International

Monetary Fund and the World Trade

Organization we are going to see the

questions they will go and the route

here we go

to understand why and how was the word

and created we have to go back to the

ends of World War 2 in this period many

countries were damaged the victory

nations which were the Allied nations

including u.s. United Kingdom and others

created the International Bank for

Reconstruction in 1944 to reveal the

damaged parts of Europe eventually this

became known as the World Bank

its main function as an international

organization is to fight poverty by

offering developmental assistance to

middle-income and low-income countries

there are 1800 for members countries but

to become a member you must join first

the International Monetary Fund plus a

subscription the subscription is of 88

99 percent and has to be paid to the

International Monetary Fund they operate

by offering a long term loans to the

governments for the financing of the

mellah mental breaks and economic reform

the World Bank attaches conditions to

these loans with the stated aims of

ensuring the country's economy is

instructed towards loan repayment

[Music]

the International Monetary Fund was

created in July 1944 in Bretton Woods

New Hampshire United States it was

created to make new economic

developments and challenges its main

function is to promote International

Monetary cooperation and gives policy

advice and capacity development support

to help countries build and maintain a

strong economies and to raise living

standards in their member countries they

design policy programs to solve

balance-of-payments problems when the

sufficient financing unaffordable terms

cannot be obtained to meet net

international payments

the organization began life on January

1st of 1995 otis trading system is half

a century older since 1948 the general

agreement of tariffs and trade G ITT has

provided for the system the World Trade

Organization is an organization for

liberalizing trade it's a forum for

governments to negotiate trade

agreements the system proposed is to

help trade flow as freely as possible

the two organizations are related to

macroeconomics by dealing with the

trading rules between nations and

business

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