Functions Of The World Bank Essay

1000 Words May 1st, 2016 null Page
• Functions of World Bank: o Grant project loans to member countries o Determine quantities of loans, interest rate and terms and conditions o Grant loans to a member country up to 20% of its share in the paid-up capital. o Provide technical services to the member countries
• Controversy about World Bank: o EDCs dominate the World Bank o Uses a wealth-based voting formula o Provides too little funding
• Functions of IMF: o Surveillance over members’ economic policies o Financing temporary balance of payment needs o Strengthening the international monetary system o Increasing the global supply of international reserves o Combating poverty in low-income countries o Building capacity through technical assistance and training o Mobilizing external financing o Dissemination of information and research
• Controversy around IMF: o Conditionality: policy of the IMF, the World Bank, and other international financial agencies to attach conditions to their loans and grants o IMF generally promotes capitalist model o IMF conditions often harm economies in LDCs o Exchange rate reforms. o Allowing inflationary devaluations. o Neo Liberal Criticisms o Lack of transparency and involvement
• Functions of WTO: o Implement rules and provisions linked to trade policy review mechanism. o Provides a platform for all member countries where they decide upon future strategies on trade and tariff. o Facilitate implementation, administration and operation for the multilateral and bilateral…

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