Day 90 – Q 5.What are the major international economic institutions? Discuss their organisational structure and mandate.
5. What are the major international economic institutions? Discuss their organisational structure and mandate.
प्रमुख अंतरराष्ट्रीय आर्थिक संस्थान कौन से हैं? उनकी संगठनात्मक संरचना और जनादेश पर चर्चा करें।
International economic institutions are vital for the growth of international trade and financial stability maintenance. These institutions aim to provide a level playing field for all the countries and develop economic cooperation.
Major international economic institutions and structure/mandate:
- World trade organization : formed in 1995 to replace the General Agreement on Tariffs and Trade (GATT), which was started in 1948 dealing with the rules of international trade among countries..
- Ministerial authority with representatives of all WTO countries which is required to meet at least every two years and which can take decisions on all matters under any of the multilateral trade agreements.
- Subsidiary bodies include General Council, Committee on Trade and Development, Committee on Budget.
- Dispute settlement body which is nothing but the General council to investigate and adjudicate the trade disputes.
- Raising the standard of living of people, promoting full employment, expanding production and trade, and utilizing the world’s resources optimally.
- Ensuring that developing and less developed countries have better share of growth in the world trade.
- Introducing sustainable development in which balanced growth of trade and environment goes together.
- International monetary fund: is a 189-member organization that works to stabilize the global economy.
- 24 member executive board chaired by a managing director.
- Joint IMF-World Bank development committee responsible for development project assistance.
- Subsidiary bodies including Area development boards, Functional and special service departments, office of budget and planning etc.,
- Helping in increasing employment and real income of people.
- Solving the international monetary problems that distort the economic development of different nations.
- Maintaining stability in the international exchange rates.
- Monitoring the financial and economic policies of member nations.
- Assisting low developed countries in effectively managing their economies and help then financially when required.
- United Nations Conference on Trade and Development:
- Headed by a secretary general.
- Management divisions like division of globalization and development strategies, division on international trade and services and so on.
- Eliminating trade barriers that act as constraints for developing countries.
- Formulating principles and policies related to international trade.
- Providing technical assistance to developing countries specially low developed countries.
- World economic forum
- Structure: executive chairman assisted by board of trustees.
- engage the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
- bringing together people from all walks of life who have the drive and the influence to make positive change.
- World bank
- Comprises of The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
- Owned by member countries with voting rights proportional to the financial contribution made.
- To end extreme poverty, by reducing the share of the global population that lives in extreme poverty to 3% by 2030.
- To promote shared prosperity, by increasing the incomes of the poorest 40% of people in every country.
There are various other vital economic institutions including the International finance corporation, MIGA and so on. All in all, the mandate is to promote international trade by eliminating tariff and non-tariff barriers as well as maintain financial stability aong with support for development works.