Jeremiah Agira HD334 033 0244/2011Julius Musyoka HD334 033 0230/2011Symon Kiarie HD334 033 0333/2011Sarah Kirenga HD334 033 0256/2011

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Identify the role of the following bodies in International Business

World BankInternational Monetary Fund

World Trade Organization

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International trade may be defined as a contract of buying and selling goods and services entered into between parties whose places of business are in different countries or trade in goods and services that cut across international borders or between nationals of different countries.

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A contract of sale of goods. A contract of carriage of goods. The contract of insurance for the goods. The compliance with formalities and

documentation requirements stipulated by the exports and imports’ authorities.

The mechanism for payment set up by the buyer.

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The World Trade Organization [hereinafter called “WTO”] is an organization which was set up out of the Uruguay Round of General Agreement on Tariffs and Trade negotiations in 1995 and which became the successor to and replacement of the General Agreement on Tariffs and Trade [GATT]

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Facilitating the implementation, administration and operation and furthering the objectives of the agreement establishing it and other Multilateral Trade Agreements and providing the framework for the implementation, administration and operation of the Plurality Trade Agreements.

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Providing the forum for negotiations among its Members concerning their multilateral trade relations in matters dealt with under the agreements in the Annexes to the Agreement setting it up and for the results of such negotiations as may be decided by the Ministerial Conference,

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Administering the Understanding on Rules and Procedures Governing the Settlement of Disputes or the Dispute Settlement Understanding which is Annex 2 to the agreement setting it up,

Administering the Trade Policy Review Mechanism in Annex 3 of the agreement setting it up,

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Cooperating as appropriate with the International Monetary Fund and the International Bank for Reconstruction and Development with a view to achieving greater coherence in global economic policy making.

This is aimed at building better understanding and coordination between a trade organisation like WTO and monetary institutions like IMF and World Bank.

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The International Monetary Fund (IMF) was founded while the Second World War was still raging. In 1944 at Bretton Woods, the USA – as one historian memorably described it – a global conference of ‘one and a half’ parties took place.

The IMF was formally organized on December 27, 1945, when the first 29 countries signed its Articles of Agreement.

Presently there are memberships of 184 countries over the world and a staff of approximately 2,680 from 139 countries

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Establish global economic rules which would prevent a replay of the Great Depression and its aftermath.

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To promote international monetary cooperation through a permanent institution .This provides the machinery for consultation and collaboration on international monetary problems

To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

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To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade

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To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members

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Surveillance: This involves collaboration between the IMF and its member nations. The IMF continues to assess the economic conditions of its members and offers in-depth advice to help them formulate sound economic policies.

Lending: Financial aid is provided to member countries who are struggling with balance of payment problems. Through Exogenous Shocks Facility (ESF) and the Poverty Reduction and Growth Facility (PRGF), the IMF helps its members and even collaborates with the World Bank to lend money to them

Technical Assistance: The IMF offers technical assistance in areas such as banking, fiscal and economic policies as well as exchange rate policies. It also helps its member nations to fight threats such as terrorism and money-laundering.

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The IMF triggered Poland’s economic transition. The transition included institution building, liberalization, and macro-economic management.

Initiatives by the IMF triggered economic growth, liberalized prices and the spread of democratic institutions in countries like the Czech Republic, the Slovak Republic the Baltics and Hungary.

In 2008, the Asia Pacific region made considerable progress in addressing downside risks to economic growth.

Challenges Some of the challenges for the IMF are gaining sufficient political

muscle to grapple with issues that affect economic prosperity, offering speedy solutions to crises and ensuring economic transition for developing nations.

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The World Bank Group (WBG) is a family of five international organizations that makes leveraged loans, generally to poor countries.

The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary and Financial Conference (1–22 July 1944).

It also provided the foundation of the Osiander-Committee in 1951, responsible for the preparation and evaluation of the World Development Report

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International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency

(MIGA) International Centre for Settlement of

Investment Disputes (ICSID) The term "World Bank" generally refers to

the IBRD and IDA, whereas the World Bank Group is used to refer to the institutions collectively

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The World Bank's (i.e. the IBRD and IDA's) activities are focused on developing countries, in fields such as human development (e.g. education, health), agriculture and rural development (e.g. irrigation, rural services), environmental protection (e.g. pollution reduction, establishing and enforcing regulations), infrastructure (e.g. roads, urban regeneration, electricity), and governance (e.g. anti-corruption, legal institutions development).

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The World Bank Institute is the capacity development branch of the World Bank, providing learning and other capacity-building programs to member countries. Two countries, Venezuela and Ecuador, have recently withdrawn from the World Bank. It is stated that it is also an observer on the United Nations Development Group.

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