Professional Documents
Culture Documents
1 - 22 July 1944
2. Plan to establish an
International Trade Organisation
ITO
Origin of the 3 main institutions that govern globalization!
Organisational structure
Board of governors
(1 governor and 1 alternate governor
from each member country, which
appoints them)
Executive Board
President
all directors
appointed by
their respective
governments
various departments
by tradition
a US national
five of them represent
individual countries
(USA, GB, F, G, Japan),
the other 19 represent
groups of countries
Member governments subscribe to the basic share capital of the World Bank,
with votes proportional to shareholding
Result: the World Bank is controlled primarily by developed countries,
while clients have almost exclusively been developing countries
Total votes, as of 1 November, 2004:
USA: 16.4%
Japan: 7.9%
Germany: 4.5%
United Kingdom: 4.3%
France: 4.3%
Many countries didn't have enough foreign currency (e.g. because of trade deficits)
Some countries' central banks didn't exchange
enough money into foreign currency
Some countries hoarded gold
and money that could be converted into gold
Result:
not enough foreign currency
available for
growing international trade
Competitive devaluations
Countries made their currencies cheaper in order to export more goods
Other countries retaliated
Excursus:
Government:
Central Bank:
Stimulation of demand
Economic growth
(expansion)
Dangers: - inflation
- governments don't repay
their debts in better times
Less demand
Organisational structure
Board of governors
(1 governor and 1 alternate governor
from each member country, which
appoints them)
Executive Board
Chairperson
Dominique
Strauss-Kahn
+ 23 other members
by tradition
a non-US national
five of them represent
individual countries
(USA, GB, F, G, Japan),
the other 19 represent
groups of countries
various departments
http://www.imf.org/external/np/sec/memdir/eds.htm
Purposes:
- pool of money (2001: $269 bn) from which members
can borrow when they are in financial difficulties
- basis for how much a member country can borrow
G8 states
Major decisions require an 85% majority!
3. Technical assistance:
for members who need expertise in central banking and public finance etc.
e.g. developing countries, Russia
Newest tendency:
More attention on help for the poor, health and education and "good governance"
- Land reform: In many developing countries a few rich people own most of the land
- Fight against corruption
IMF
- oversees the international monetary system
- evaluation of member countries'
economic performance