Question

To what extent are the international institutions that have been established in the period since 1944 well suited to managing the contemporary global economy?

Answer 1

The global institution that came into existence are International Monetary Fund, World Bank , World Trade Organisation etc. These institutions played very decisive role in shaping global economy . Global economy as exist today is only the result of support and guidance provided by these institutions.

World Bank and it's various agencies provided loans to the war torned countries at a cheaper rates and affordable condition to reconstruct their economies. They not only facilitated the monetary support but also provided technical guidance about how to evolve economy to end poverty and unemployment prevailing .

Similarly IMF helped the countries to come out of Forex crisis at many times. Prime example to this support provided by IMF to countries like India and Pakistan . IMF supported these countries only on condition that they will bring competitive reforms and would make their economies more competitive by providing level playing field to both private sectors and public sector.

WTO encouraged rule based trading where agreement came into force through mutual negotiations and understanding between trading parties. In rule based trading every country wtheter rich or poor has equal say in every aspect of trade thus WTO brought equality in trading. Also the organisation has grivence redressal forum where complaints are solved through mutual cooperation among trading parties.