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IMF WORLD BANK
Jeet Patalia
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INTERNATIONAL MONITARY FUND
•What is IMF???• It is an organization of 186 countries, working
to faster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty
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The International Monetary Fund was created in July 1944, originally with 45 members, with a goal to stabilize exchange rates and assist the reconstruction of the world's international payment system. Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances. (Condon, 2007)Headquarters in
International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn (R) briefs journalists on the outcomes of the International Financial Monetary and Financial Committee meeting with Egyptian Finance Minister and International Monetary and Financial Committee (IMFC) Chairman Youssef Boutros-Ghali (M), and IMF First Deputy Managing Director John Lipsky (L); April 25, 2009 at IMF Headquarters in Washington, DC.
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Who runs the IMF?
Member Countries
IMF Managing Directors
Executive Board
Board of Governors
First Deputy Managing DirDeputy Managing
DirDeputy Managing
Dir
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MEMBERSHIP
•Original members: All those countries whose representatives took part in BRETTONWOODS CONFERENCE and who agreed to be the members of the fund prior to 31st December 1945•Ordinary members: All those who became
members subsequently
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Objectives of IMF
• International monetary co operation• To facilitate expansion and balanced growth of
international trade• To promote exchange stability•Generating higher employment and income• Abolition of exchange restriction• AID to members during emergency
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Functions of IMF
•Determining rate of exchange by every country• Fund lending• Credit tranches• A central Bank’s bank• Training and technical assistance• Consultancy role
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Achievements of IMF
• International monetary co operation• Exchange stability• Checking competitive depreciation• Increased assistance• Increase in capital resources• Expansion of trade
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Advantages to INDIA
• Financial Assistance from the fund•Helps in foreign exchange crisis•Membership of the world bank• Economic consultation
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Relationship between IMF and INDIA
• The relationship between the IMF and India has grown strong over the years. In fact, the country has turned into a creditor to the IMF. India and IMF must continue to boost their relationship this way, as it will prove to be advantageous for both. • India recorded a GDP growth of 9.8% in 2006 and 9.3% in 2007. IMF estimate for India’s growth in 2015 is now 7.2%. • The International Monetary Fund raised its
forecasts of India’s economic growth on Wednesday, saying it now predicts gross domestic product will expand by 7.2% in the current fiscal year, which runs until the end of March, instead of 5.6% as predicted earlier.
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Conclusion…
The IMF’s primary purpose is to safeguard the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from each other. This is essential for achieving sustainable economic growth and raising living standards.
providing advice to members on adopting policies that can help them prevent or resolve a financial crisis, achieve macroeconomic stability, accelerate economic growth, and alleviate poverty;
making financing temporarily available to member countries to help them address balance of payments problems—that is, when they find themselves short of foreign exchange because their payments to other countries exceed their foreign exchange earnings; and
offering technical assistance and training to countries at their request, to help them build the expertise and institutions they need to implement sound economic policies.
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WTO…
• Formed in 1995• Replaced GATT (General Agreement on Tariffs
and Trade) which as formed in 1947• Initially 23 countries in ’47- India one of the
founder members• By 1994 GATT touched 118 countries• Provided for reduction in tariffs and trade
restrictions- 8 rounds of MSNs were held
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FUNCTIONS AND ORGANISATIONOF WTO
•WTO Agreement came into force from Jan 1, 1995• Agreement was signed by 104 countries- India
became a founder member• It has 5 functions as set out in Article III•Highest decision-making body is the Ministerial
Conference•Has to meet at least once every two years
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WTO AGREEMENTS
• Agreement on Agriculture• Agreement on trade in textiles and clothing
(Multi-Fibre Arrangement)• Agreement on market access• Agreements on TRIMs• Agreements on TRIPs• Agreements on services•Disputes Settlement Body
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INDIA’S COMMITMENTS TO WTO
• Tariff Lines•Quantitative Restrictions• TRIPs• TRIMs•GATS• Customs Valuation Rules
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BENEFITS PROCLAIMED FOR INDIA
• Benefits from expansion in trade• Benefits from phasing out of MFA• Improved prospects for agricultural exports• Benefits from mutlilateral rules and disciplines
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CRITICAL REVIEW
• Inequality Within the Structure of WTO• Trade Related Intellectual Property Rights• Trade Related Investment Measures• Competition in Services• Trade and Non-Tariff Barriers by Developed
Countries• Agreement on Agriculture• Labor Standards and Environment• Trespassing the Sovereignty of Nation-State
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INDIA’S NEW PATENT REGIME
• Scope of Patentability• Protecting Rights of Generic Producers• Compulsory Licensing• Exports to Poor Countries• Pre-Grant Opposition
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WORLD BANK
• The World Bank is an international financial institution that provides loans to developing countries for capital programs.
• The World Bank's official goal is the reduction of poverty.
• The World Bank is a lending institution that funds essential infrastructural requirement, globally.
• The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)
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At a glance
• NAME : WORLD BANK• H.Q. : WASHINGTON D.C.• ESTD. : 27 DEC 1945
• CURRENT PRESIDENT : JIM YONG KIM• STAFF : 10000 IN 100 COUNRIES• AUTHORIZED CAPITAL : $184 BILLION• FINANCIAL SOURCES : BORROWING ON
INTERNATIONAL MARKET
• Membership : 188 countries (IBRD) 172 countries (IDA)
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History
• Conceived during World War II (July, 1944) at Bretton Woods, New Hampshire.
• 1944 – 1968 : Bank president John McCloy selected France to be first recipient of World Bank aid. The loan was for US$250 million.
• 1968 – 1980 : The bank concentrated on meeting the basic needs of people in the developing world. The size and number of loans to borrowers was greatly increased as loan targets expanded from infrastructure into social services and other sectors.
• Initially was called the International Bank for Reconstruction and Development (IBRD). Now is called the “World Bank Group
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Functions
• The Bank Group uses financial resources and extensive experience to help poor nations reduce poverty, increase economic growth, and improve the quality of life.
• World Bank provides technical and financial assistance to underdeveloped nations for development schemes like building roads, schools, hospitals, etc. The main aim is to eliminate poverty from the world
• Current global challenges include the financial crisis, high food prices, and climate change.
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WORKING GROUPS OF WORLD BANK
• 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)
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• The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countrie
• The International Development Association (IDA) provides interest-free loans—called credits— and grants to governments of the poorest countries.
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• The International Finance Corporation (IFC) provides loans, equity and technical assistance to stimulate private sector investment in developing countries
• The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against losses caused by non-commercial risks to investors in developing countries
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The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.
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• The Executive Directors, representing the Bank's member countries,
make up the Board of Directors, usually meeting twice a week to
oversee activities such as the approval of loans and guarantees, new
policies, the administrative budget, country assistance strategies and
borrowing and financing decisions.• The Vice Presidents of the Bank are its principal managers, in charge
of regions, sectors, networks and functions. There are 24 Vice-
Presidents, three Senior Vice Presidents and two Executive Vice
Presidents.
Jim Yong Kim, M.D., Ph.D., became the 12th President of the World Bank
Group on July 1, 2012
Chief Economist – Kaushik Basu (September 2012),an Indian economist, is the
chief economist and senior vice president of the world bank
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WORLD BANK IN INDIA
• The World Bank's work plan in India is spelt out in its Country Strategy (CAS).
• The Country Strategy for India for 2009-2012 is aligned with the government's Eleventh Five Year Plan.
• It focuses on helping the country to fast-track the development of much-needed infrastructure, support the seven poorest states, and respond to the financial crisis.
• The strategy envisages total proposed lending of US$14 billion for 2009 - 2012.
• The strategy is implemented through lending, dialogue, analytical work, engagement with the private sector, and capacity building exercises.
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SUPPORT TO INDIA• India has been borrowing from the World Bank through IBRD and IDA for
various development projects in the area of poverty alleviations, infrastructure, rural developments etc.
• IDA funds are one of the most concessional external loans for GoI and are used largely in social sector projects that contribute to the achievement of Millennium Development Goals.
• India has borrowed around US$ 65.8 billion from the World Bank so far.
• In 1958, the Bank played an important role in establishing ‘India Aid Club’ for providing specific economic assistances to India. It has now been renamed as ‘India Development Forum’.
• International Development Association (IDA), an associate of World Bank is known as the soft loan window of the Bank and was established on September 24, 1960.
• During 1995-96 (July-June), India ranked first among the nations getting assistance from IDA.
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PROJECTS
• The World Bank Group’s Partnership Strategy for India (2013-2017) will help India lay the foundations for achieving “faster, sustainable, and more inclusive growth” as outlined in the government’s 12th five year plan. • The World Bank Group will support India with
an integrated package of financing, advisory services, and knowledge. During the World Bank financial year (July 2013-June 2014), funding for India was $5.2 billion ($2.0 billion in International Bank for Reconstruction and Development (IBRD), $3.1 billion in International Development Association and $0.1 billion in CTF or Clean Technology Fund) across 16 projects.
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VOTING POWER
• In 2010, voting powers at the World Bank were revised to increase the voice of developing countries, notably China. The countries with most voting power are now the United States (15.85%), Japan(6.84%), China (4.42%), Germany (4.00%), the United Kingdom (3.75%), France (3.75%), and India (2.91%).
• Under the changes, known as 'Voice Reform - Phase 2', countries other than China that saw significant gains included South Korea, Turkey, Mexico, Singapore, Greece, Brazil, India, and Spain. Most developed countries' voting power was reduced, along with a few poor countries such as Nigeria. The voting powers of the United States, Russia and Saudi Arabia were unchanged.
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THANK U!!