Globalization is changing the worldwide economy scene in many important ways. Globalization creates extensive trade markets, enhanced right to use of the technology, and a lot of capital inflows. The World Bank (WB), International Monetary Fund (IMF), and the World Trade Organization (WTO) institutions play a major role in accelerating the globalization. These institutions characterize irrational principles in their search to gratify the requirements of both developed and developing nations. Many organizations are selecting various paths for globalization such as merging with companies globally, allowing overseas direct investment, and tactical coalitions. As argued by (Woods 2006), to date WB and IMF have magnified and accelerated the expansion of global commerce, and they were created to manage and create globalization, and not simply to accelerate it. This paper explains the roles of WB, IMF and WTO and their contribution in accelerating globalization.
Eradicating poverty globally is one of the major roles of the World Bank, and being a financial institution it is responsible for providing assistance to the developing countries to progress economically. WB provides development loans for particular projects, such as building dams, constructing roads, ports or any other infrastructure that would benefit the economy of the country. WB plays a role of guiding and coordinating in this world of international economic affairs because it is a multilateral institution with broad and deep experience (Marshall 2008). The bank supports to develop infrastructure to embellish the private investment, and to ensure the financial returns. The World Bank ensures to accelerate globalization by working with the poorer countries and providing a combination of financial resources, technical support, advice and analysis, training, coordination of development assistance (Marshall 2008)
International Monetary Fund was started with a purpose to provide worldwide public
good of monetary stability. IMF’s role in globalization is to assist the development of global trade that would result in lots of job creation, work towards the economic growth of the developing countries and reduce poverty. IMF also offers provisional foreign exchanges to countries. The global capital markets drive and strengthen IMF, and due to this fact, there can be financial crises. In such situations IMF plays a role of a debt-collector. IMF conducts surveillance, monitoring, and assistance in data dissemination in economics around the world (Woods 2006). IMF can only fulfill its objectives with proper cooperation from the developing and emerging economies.
The World Trade Organization is the most powerful organization considered to be the global government. WTO plays a major role in reviewing the occupation and professional policies, helps the developing countries by training them on trading, and solves any disputes between countries that arise from issues related to trade. WTO has extended the reach of trade rules into every sphere of economic, social and cultural activity (Shrybman 2001). The resolution of WTO is to lessen trading obstacles and inspire the developing countries to trade with each other, support unbiased oppositions between these countries and promote trade by being liberal and ensure these measures contribute to economic growth and accelerate economic globalization.
All these three organizations; WB, IMF, and WTO are significant in economic growth of a country, which work towards eradicating poverty, providing financial support, and creating trading agreements. The WB that started as a single institution is now grouped into 5 different development institutions such as IBRD, IDA, IFC, MIGA and ICSID and all these groups work globally to increase globalization. WB and IMF work together as they have recognized that socio-economic development accelerates only when there is good financial support and the economic policies are followed conscientiously.
References
Marshall, Katherine. (2008). The World Bank: From Reconstruction to Development to Equity.
Illustrated. Routledge.
Woods, Ngaire. (2006). The Globalizers: The IMF, The World Bank, And Their Borrowers.
Illustrated, Reprint, Cornell University Press.
Steven, Shrybman. (2001). The World Trade Organization: A Citizen's Guide. 2nd Edition.
Revised. James Lorimer & Company.
