Business: International Monetary Fund And The World Bank

International Business
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International Business
The International Monetary Fund and the World Bank are the major institutions that facilitate globalization. Even though the institutions play the same role, they are different in the manner in which they function. On one side, the International Monetary Fund is a controller of the global monetary system while World Bank is an international financial institution. The IMF dwells on ensuring that there is financial stability whereas the World Bank is focused on ensuring that there is economic stability for the developing nations. Another key difference between the World Bank and IMF as agents of globalization is in their size. Ideally, World Bank is three times bigger than IMF. This structural difference means that World Bank plays a bigger role in globalization than the IMF. While the IMF is a unitary organization, the World Bank is a bilateral organization. The roles of the two institutions are also widely varied in that the IMF offers an advisory role while World Bank is more focused on lending to need nations.
Many people feel that the World Trade Organization (WTO) has no role to play in facilitating globalization. However, a close examination reveals that the WTO does indeed play a key role in facilitating globalization. One of the major functions of the WTO is to ensure that nation’s follow the set rules of trade between them. This is quite important as any failure to ensure that there is free trade would lead to unfair dealings that would lead to imbalances. Trade is one of things that facilitates globalization and as such, the WTO has a critical role to play in as far as globalization is concerned. Apart from encouraging cross border trade, ...