POLI 205 Lecture Notes - Lecture 15: International Monetary Fund, World Trade Organization, International Monetary Systems
15 Jun 2018
School
Department
Course
Professor
POLI205
November 6th
Economic Intergovernmental Organizations
In 1944, the Breton woods monetary system was established featuring 3 pillars of the postwar
international economic order:
1) The General Agreement on Tariffs and Trade (GATT): replaced by the World Trade Organization
in 1995
2) The International Bank for Reconstruction and Development (IBRD): also known as the World
Bank.
3) The International Monetary fund (IMF)
World Trade Organization (WTO)
- A Global IGO with 164 members.
- Promotes, Montors, and adjudicates international trade
- Replace the General Agreement on Tariffs and Trade (GATT) in 1995
- The GATT concentrated on reducing tariffs on the Import of the manufactured goods
- The WTO includes the GATT agreements, and is also dealing with more sensitive issues of trade
in agricultural products, services, telecommunications, and intellectual property.
- The WTO is rooted in the principles of
o 1) reciprocity : a state should ath aothe state’s edutio of tade aies etwee
them
o 2)non-discrimination: every WTO member is entitled to the same treatment that a
member state gives to its Most-Favored Nation (MFN)
o Cliques in IR
International Bank for Reconstruction and Development (IBRD)
- The IBRD provided loans to Europeans states so that they could reconstruct their economies
after the Second World War
- Following the European recovery, developing states became the principal borrowers
- After the Cold War ended, East European States became the primary borrowers as they
transitioned from socialist to market economies.
International monetary fund (IMF)
- Created to help states maintain equilibrium in their balance of payments and stable exchange
rates.
- Promotes international monetary cooperation, free trade exchange rate stability and
democratic rule by providing financial assistance and loans to countries facing financial crises.
- Each IMF member is assigned a quota for its deposit of financial reserves with the IMF
- The uota is ased o the size ad stegth of the state’s eooy
- A member state may borrow from its reserves or the IMF to stabilize its economy in difficult
times and repay the IMF in subsequent years.
- The IMF has been controversial for its conditionality agreements
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Replace the general agreement on tariffs and trade (gatt) in 1995. The gatt concentrated on reducing tariffs on the import of the manufactured goods. The wto includes the gatt agreements, and is also dealing with more sensitive issues of trade in agricultural products, services, telecommunications, and intellectual property. The ibrd provided loans to europeans states so that they could reconstruct their economies after the second world war. Following the european recovery, developing states became the principal borrowers. After the cold war ended, east european states became the primary borrowers as they transitioned from socialist to market economies. Created to help states maintain equilibrium in their balance of payments and stable exchange rates. Promotes international monetary cooperation, free trade exchange rate stability and democratic rule by providing financial assistance and loans to countries facing financial crises. Each imf member is assigned a quota for its deposit of financial reserves with the imf.
