Question

Some argue that the IMF, WB and WTO are institutions of neo-imperialism. Make an argument for or against this thesis.

Answer 1

One of the central criticisms of the World Bank and IMF relates to the political power imbalances in their governance structures where, as a result of voting shares being based principally on the size and 'openness' of countries' economies, poorer countries often those receiving loans from the BWIs The IMF is an international organisation of 190 members works to ensure the international mandatory and finatial system The IMF’s mandate includes facilitating the expansion and balanced growth of international trade, promoting exchange stability, and providing the opportunity for the orderly correction of countries’ balance of payments problemsThe world trade organisations is an international organisation of 164 membersthat deals with the rules of trade between nations. With Russia’s accession in August 2012, the WTO encompasses all major trading economies. The WTO works to help international trade flow smoothly, predictably, and freely, and provides countries with a constructive and fair outlet for dealing with disputes over trade issues. The WTO came into being in 1995, succeeding the General Agreement on Tariffs and Trade that was established in 1947.hTe work of the IMF and the WTO is complementary. A sound international financial system is needed to support vibrant international trade, while smoothly flowing trade helps reduce the risk of payments imbalances and financial crisis. The two institutions work together to ensure a strong system of international trade and payments that is open to all countries. Such a system is critical for enabling economic growth, raising living standards, and reducing poverty around the globe. The IMF has observer status in certain WTO bodies, and may participate in meetings of certain WTO committees and working groups. The WTO Secretariat attends meetings of the IMF Executive Board or the Board Committee on Liaison with the World Bank and other International Organizations on matters of common interest. Macro-critical trade issues may feature in Fund surveillance activities and can be addressed in the context of IMF-supported programs, when needed, to meet the program’s objectives. Equally, IMF surveillance reports are important inputs to the WTO’s periodic reports on member countries’ trade policies The WTO Agreements require that it consult the IMF when it deals with issues concerning monetary reserves, balance of payments, and foreign exchange arrangements. For example, these agreements allow countries to apply trade restrictions in the event of balance of payments difficulties. The WTO’s Balance of Payments Committee bases its assessments of restrictions in considerable part on the IMF’s determination of a member’s balance of payments situation.informalonsultation between IMF staff and the WTO Secretariat takes place regularly regarding trade policy and global economic developments, as well as on advice for individual countries. Examples of consultations include visits by senior IMF staff to the WTO, and vice versa, to make presentations and attend discussions on issues of common interest. The IMF, the WTO, and the World Bank hold a regular conference to further facilitate the exchange of views among academics, civil society, and staff of the three organizations on current trade issues.