World Trade Organisation

The basic purpose of the WTO is to promote international trade without any discrimination-1st Jan, 1995

Functions of WTO

WTO shall facilitate the implementation, Administration and operation of the plurilateral trade aggreement.WTO shall provide a forum for the negotiation among its members concerning their multilateral trade relationsWTO shall administer the understanding on rules and procedures governing the settlement of disputesWTO shall administer the trade policy review mechanism and WTO shall co operate as appropriate with IMF AND IBRD and with the affiliated agencies

Functions of WTO

WTO administers the 28 agreements contained in the final act and the no of plurilateral agreements and the government procurement through various councils and committeesIt oversees the implementations of issues related to tariff cut an non tariff measures agreed to in the trade negotiationsIt examines the trade regimes of the individual member countriesWTO provides dispute settlement courts and panelIt acts as a management consultant for world tradeIt provides technical co-operations and trainingIt can be used as a forum for continuous negotiations It co-opts with the international institutions like IMF,IBRD etc for making global economic policyAnd it oversees the national trade policies of member governments.

Organisation Structure of WTO

Ministerial Conference-policy and strategy making bodyGeneral Council-executive body of WTO-disputes settlement and trade related policyCouncils-trade in goods , trade in services and trade related aspects of intellectual property bodiesCommittees and Management Bodies-committee on trade and development, balance of payment and budget, finance and administrations

International Monetary Fund

IMF is a post war international monetary institution.

It came into existence to promote economic and financial cooperation among member countries

Objectives of IMF

Avoid the competitive devaluation and exchange controlEstablish and maintain currency convertibility with stable exchange rateTo promote international monetary cooperationTo facilitate balance growth rateTo lend confidence to members by making the fund’s resources availableTo provide short term assistance to correct the balance of payment

International Liquidity and Special Drawing rights

Assets like bullion, commercial credit , currencies, foreign securities and SDR’s maintained by the countries to settle the deficit in the BOP and the aggregate total of such stock of all the central banks in the world is known as international liquidity,.

Problems of international liquidity

Imports, Globalisation and structural shifts

International Bank for Reconstruction and Development

IBRD was established to provide long term assistance for the reconstruction and development of economies of the economies of the member countries

Functions of IBRD

To assist in the reconstruction and development and development of its member countriesTo promote private foreign investment by means of guaranteesTo promote long range balanced growth of international trade and the maintenance of equilibrium in the BOP of member countries

International Development Association

Established in 1960 as an affiliate to IBRD

Objectives –

To provide development finance on easy terms to less developed member countries

To provide assistance for poverty alleviation in the poorest countries

To provide finance at concessional interest rates