Question

What are the international agencies that facilitate flow of funds

a) International Monetary fund and its objectives.

b) World Bank and its objectives.

c) World trade Organization and its objectives .

d) International Financial Corporation and its objectives .

e) Bank for International settlement and its objectives .

f) Organization for Economic Cooperation and Development and its objectives .

Answer 1

a) The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Objectives of IMF:

1. To promote international monetary cooperation

2. To facilitate the expansion and balanced growth of International Trade

3. To promote exchange rate stability

4. To make its resources available to its members who are experiencing BoP(Balance of Payments) problems

5. To establish a multilateral system of payments

b) The World Bank is an international financial institution that provides loans to countries of the world for capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).

Objectives of World Bank:

1. To provide long-run capital to member countries for economic reconstruction and development.

2. To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium and balanced development of international trade.

3. To provide guarantee for loans granted to small and large units and other projects of member countries.

4. To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy.

5. To promote capital investment in member countries by the following ways;

(i) To provide guarantee on private loans or capital investment.

(ii) If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.

c) World Trade Organization (WTO) is an international organization established to supervise and liberalize world trade.

Objectives of WTO:

1. to set and enforce rules for international trade,

2. to provide a forum for negotiating and monitoring further trade liberalization

3. to resolve trade disputes

4. to increase the transparency of decision-making processes

5. to cooperate with other major international economic institutions involved in global economic management

6. to help developing countries benefit fully from the global trading system

d) The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries.

Objectives of IFC:

1. To invest in productive private enterprises, in association with private investors, and without government guarantee of repayment, in cases where sufficient private capital is not available on reasonable terms.

2. To serve as a clearing house to bring together investment opportunities, private capital (both foreign and domestic) and experienced management.

3. To help in stimulating the productive investment of private capital, both domestic and foreign.

e) The Bank for International Settlements (BIS) is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks"

Objectives of BIS:

1. aims at promoting monetary and financial stability

2. acts as a forum for discussion and cooperation among central banks and the financial community

3. acts as a bank to central banks and international organisations

f) The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 36 member countries founded in 1961 to stimulate economic progress and world trade.

Objectives of OECD:

1. The stated purpose of OECD is to achieve economic growth in member countries, to contribute to economic expansion, and to increase the expansion of world trade.

2. The objective is to foster the free international flow of payments, services, capital, human resources, and scientific developments.

3. OECD is concerned with developments in industry and agriculture, the use of nuclear energy for peaceful purposes, and environmental problems.