Roles of the WB, IMF, and WTO in the Acceleration of Globalization

Business and Marketing
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Business and Marketing
Globalization refers to how businesses, cultures, economies, and people become interdependent on an international level, resulting in the movement of people, ideas, goods, and services from one part of the world to another. The International Monetary Fund (IMF), World Bank (WB), and the World Trade Organization (WTO) have an essential role to play in ensuring the effectiveness of globalization.
The WB was founded in 1944 during the Bretton Woods Conference to reconstruct Europe postwar. Over the years, the bank’s focus shifted towards alleviating poverty globally and has since expanded to reach many developing countries (Masters & Chatzky, 2019). The primary function of the WB is to provide long-term loans to middle and low-income countries to fund development investments such as health, education, infrastructure, agriculture, and environmental management. The WB comprises five separate agencies: the International Development Association (IDA), the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation, the Multilateral Investment Guarantee Agency, and the International Center for Settlement of Investment Disputes.
IBRD works with low and middle-income countries through services such as loans and guarantees to eradicate poverty. IDA was established to promote development among low-income countries by offering interest-free loans and grants, focusing on health, education, and sustainable environmental practices. WB supports sustainable economic growth by working with policymakers to develop stable markets and economies. The bank provides its partners with the tools necessary to make informed development decisions for lasting impact. The bank also supports countries to expand their digital coverage so that their citizens can take advantage of the opportunities that come with internet access.
Furthermore, the bank is involved in transport connectivity projects, promoting better access to jobs and enabling the movement of people, ideas, goods, and services globally. For instance, Tanzania was granted credit to facilitate the construction of a rapid bus transport system to reduce travel time and costs for commuters (The World Bank, 2021). The bank also promotes investments by funding development policy reforms to attract investors. For instance, in Egypt, the WB provided a series of loans to fund reform programs that sparked a strong interest in foreign investors. In addition, the bank has helped to facilitate trade and integration by working with governments to formulate and implement policies that maximize trade competitiveness. They also improve the operating environment at the border points to reduce harassment, costs, and time to encourage cross-border trade.
The IMF, together with the WB, make up the Bretton Woods Institutions. The IMF mainly focuses on running the international monetary system and encouraging accurate macroeconomic policies for sustainable economic growth. The IMF also promotes exchange stability and assists individual countries in using the investment opportunities offered by international financial ...