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presented byAshish Ranjan Das
Devashish Sarangi
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Formation : 1st Jan 1995
Headquarters : Centre William Rappard,Geneva, Switzerland.
Members : 157 Member States.
Budget for 2012 : 196 million Swiss francs [204million USD]
Director-General : Pascal Lamy
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Pascal Lamy is the fifth Director-General of the WTO.
His appointment took effect on 1 September 2005 for afour-year term.
In April 2009 WTO membersreappointed Mr. Lamy for a
second four-year term, starting
on 1 September 2009.
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The World Trade Organization (WTO) is an organization that intends to supervise and liberalize
international trade.
It was established on January 1, 1995. It replaced GATT (General Agreements On Tariffs and
Trade), which was formed after the Second World War.
The purpose was to facilitate international bargaining and to reduce barriers to trade.
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 worlds trading
nations and ratified in their parliaments. The goal is to help producers of goods and services,
exporters, and importers conduct their business.
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Mid-1940s:
Meeting in Bretton Woods, New Hampshire, Created IMF and World Bank
US tried to create ITO [International Trade Organization]
Interim agreement: GATT = General Agreement on Tariffs and Trade
When ITO failed to be approved by the US and few other signatory
bodies, GATT governed trade policy by default (1946).
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Rounds of GATT
Multilateral Trade NegotiationsNo. Years Name Accomplishments
1-5 1947-61 Reduced tariffs
6 1964-67 Kennedy Tariffs + anti-dumping
7 1973-79 Tokyo Tariffs + NTBs
8 1986-94 Uruguay Tariffs, NTBs, Services, Intellectual Property,
Textiles, Ag., Dispute Settlement, CreatedWTO
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Trade in merchandise goods, services and TRIPs. Dispute settlement is faster & more automatic.
Permanent institution, own secretariat.
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Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
Administering trade agreements
Acting as a forum for trade negotiations
Settling trade disputes
Reviewing national trade policies
Cooperating with other international organizations
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Assisting developing countries in trade policy issues, through technical assistance and
training programmes.
Negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers
to trade) and agreeing on rules governing the conduct of international trade.
Assisting the process of accession of some 30 countries who are not yet members of the
organization.
Conducting economic research and collecting and disseminating trade data in support of
the WTO's other main activities.
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Ministerial Conferences
General Council
Goods, services and
intellectual property [TRIPs]
council
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BENEFITS OF WTOThe system helps promotepeace.
Rules make life easier for all.
Disputes are handled constructively.
Free trade cuts the cost of living.
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It provides more choice of productand quality.
Trade raises income.
Trade stimulate economic growth.
The basic principle make life moreefficient.
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It is an organization of 186 countries ,working tofoster global monetary cooperation , securefinancial stability ,facilitate international trade,promote high employment and sustainable
economic growth and reduce poverty .The IMF is the most detailed attempt to organizethe conduct of international monetary affairs.
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The International Monetary Fund Was created in 1944,at the Bretton Woods conference to prevent the kinds ofchain reaction in the economic system that causedworld currencies to collapse like in the Great Depressionof the 1930s.
Bretton wood agreement was contracted in 1944 andIMF was created in 1946.
IMF started to make service with IBRD (internationalbank of reconstruction and development) in 1947.
The IMF was created to support orderly internationalcurrency exchanges and to help nations having balanceof payment problems through short term loans of cash.
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IMF headquarters is in Washington D.C , U.S.AFive largest shareholders are United States, Japan,Germany, France, United Kingdom.
China, Russia, and Saudi Arabia have their own seats onthe Board.
16 other Executive Directors are elected for two yearterms by groups of countries, known asConstituencies.
Total quotas of $312 billion; outstanding loans of $71
billion to 82 countries (According to the report ofAugust 31, 2005).
The International Monetary Fund (IMF) is anorganization of 186 countries.
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Original members- All those countries whoserepresentatives took part in Bretton woods conferenceand who agreed to be the members
Ordinary Members- All those who became its
members subsequentlyProcess- Board of directorsBoard of governors with
supported all documents and subscription and quotaamount as per the terms of membership
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Fund has the authority to suspend any member andsimilarly every member is free to resign.
Total 187 members
Only North Korea, the Vatican, and four other small
countries in Europenone having its own currencyare not members of the Fund
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To promote international monetary cooperation.To facilitate the expansion and balanced growthof international trade.
To promote exchange rate stability
To correct maladjustments in the balance ofpayment.
To shorten the duration and lessen the degree ofdisequilibrium in the international balance of
payments of members
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QuotasGold Holdings
Borrowings Arrangements
General Arrangements To Borrow (GAB)
New Arrangements To Borrow (NAB)
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Drawing Rights (Lending)Gold (Reserve) Tranche
Credit Tranche
Lending Under Different SchemesCompensatory and Contingency Financing Facility(CCFF)
Buffer Stock Financing Facility
Supplemental Reserve Facility (SRF)
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SDR is created by IMFIt is not linked to any single currency nor does itscreation depend on the supply or stock of gold.
It does not belong to any single country
All member countries have a claim on the createdSDR.
It is not tangible but only a book entry.
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Its value is determined by a basket of currencies and thevalue is usually expressed in US Dollar.
At Present it is used for transactions between thegovernments.
It is the unit of account of the IMF and used as an unit ofaccount or as a basis of unit of account by a number ofinternational organizations.
Besides the members, SDRs are also held by prescribedinternational institutions. There are 15 such institutions at
present.
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What is International Liquidity?Components of International Liquidity
Gold reserves with the Central bank of the country.
Foreign currencies held by Central Banks.
IMF Drawing Rights/Special Drawing Rights(SDRs).
A countrys borrowing capacity in the international moneymarket.
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International Liquidity problem arises when demandfor it exceeds its supply.
It is a problem of liquidity gap.
Affects both the developing and the developed
countries.The problem is a result of world trade expanding ata faster rate than the supply of internationalliquidity.
Supply of Gold and Foreign exchange was growingfar less than the growth of International trade
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IMF is an important source from where membercountries obtain a part of international Liquidity.
The main objective of IMF is to provide financialassistance to meet short term balance of payments
problems.It also provides help to meet foreign exchangeshortage that arises due to some unforeseenemergencies.
IMF has played an important role in :-Drawing Rights.
Lending Schemes
By Creating Special Drawing Rights
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Type Development Finance
Institution
Purpose/focus Development assistance,Poverty reduction
Location - Washington DC
Membership - 187 countries
President - Jim Yong Kim
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WORLD BANK GROUP
WORLD BANK OTHERORGANIZATIONS
IBRD - International Bank forReconstruction and
Development
IDA - InternationalDevelopment Association
IFC - International FinanceCorporation
MIGA - MultilateralInvestment Guarantee Agency
ICSID - International Centrefor Settlement of Investment
Disputes
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To assist in the reconstruction & development ofits member countries.
To promote private foreign investment.
To promote balanced growth of international
trade. To bring about a smooth transition from a war
time economy to peace time economy.
IBRD aims to reduce poverty in middle-incomeand creditworthy poorer countries by promoting
sustainable development through loans,guarantees, risk management products, andanalytical and advisory services.
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PRESIDENT
BOARD OF GOVERNORS
BOARD OF EXECUTIVE DIRECTORS
DEVELOPMENT COMMITTEE
BOARD COMMITTEE - MANAGING DIRECTORSVICE PRESIDENT & FINANCIAL OFFICERS
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Goal 1: Wipe out extremepoverty and hunger
Goal 2: Offer all children agood basic education
Goal 3: Help women get equalrights and empower them
Goal 4: Reduce death rate of young children
Goal 5: Improve the health of mothers
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Help countries protect their environmentsGoal 8: Promote a global partnership for development
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IBRD raises funds on capital markets
Donors give money to IDA for the worldspoorest countries, with additional money
coming from repayments and from the Banksearnings
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Education: $1.9 billion HIV-AIDS: $2.5 billion for
UNAIDS Health: $2.2 billion for health,
nutrition, and populationprojects.
Debt Relief: 27 countries Environment: $2.49 billion Partnerships: $4.8 billion Governance: $2.6 billion
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France was the firstborrower for $250million to finance post-war reconstruction in
1946 Many developed nations
who are now donors,were also borrowers,
such as Austria,Australia, Denmark,Japan, Italy, Finland, andGreece
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