Reviewer (5-7)

INTERNATIONAL FINANCIAL INSTITUTIONS AND GLOBAL CORPORATION

International Financial Institutions (IFI'S)

- Financial institutions that have been established by more than one country.

International Monetary Fund (IMF)

- Organization of 186 countries working to foster global secure financial stability and reduce poverty
around the world

World Bank

- The term "World Bank" generally refers to just IBRD and IDA

The International Bank of Reconstruction and Development (IBRD) - aims to reduce poverty in middle-
income and creditworthy poorer countries

The International Development Association (IDA) - focuses on the world's poorest countries

Bretton Woods

- Named for the Bretton Woods Monetary Conference which took place in New Hampshire, During July
1-22, 1944

The Role of the IMF

- Promoting research in Various areas of international economics

Functions of IMF

Surveillance (Doctor) - Gathering data and assessing economic policies of countries

Technical Assistance (Teacher) - Strengthening Human Skills and Institutional Capacity of Countries

Financial Assistance (Banker) - Lending to countries to support reforms.

The Primary Objectives of World Bank

1. To provide long-run capital to member countries for economic reconstruction and development.

2. Assuring the Balance of Payments to balance the development of International Trade.

3. To provide guarantee for loans and granted to small and large units and other projects of member
countries.

4. To ensure the implementation of development projects so as to bring a smooth transference from a

5. Promoting Capital Investment in member countries.

1. The creation of the Bill and Melinda Gates foundation happened in 2000.

2. The Gavi, the Vaccine alliance in 2000

3. The Global fund to fight AIDS, Tuberculosis and Malaria in 2002

The Composition of World Bank

1. The International Bank for Reconstruction and Development (IBRD) provides loans at market rates
of interest to middle-income and lower-income countries.

2. The International Development Association (IDA) provides long-term interest-free loans, technical
Assistance, and policy to low income developing countries such as health, education and rural
development.

3. The International Finance Corporation (IFC) - provides loans and loan guarantees and equity
financing to business.

The Multilateral Investment Guarantee Agency (MIGA) - provides loan and insurance to foreign
investors

The International Centre for Settlement of Investment

Disputes (ICSID) - is responsible for the settlement by arbitration of investment.

Five major countries that appoint their executive directors:

United States, Japan, Germany, United Kingdom and France

Global Corporation - Corporations expanding business globally and not domestically operating are called
multinational company.

The Three Channels of Development Assistance

1. Government and related aid agencies,

2. Multilateral development bank (MDB) public sector arms

3. Bilateral development finance institutions (DFIs) private sector arms

The Role of Private Sector-Oriented IFIs in Addressing Private Sector Challenges

1. Providing financial products to private companies

2. Providing related advisory (technical assistance)

3. Providing comfort under challenging environments

4. Demonstrating the viability of private solutions in difficult or new areas,

5. Networking-helping firms get to know other firm.

GLOBALIZATION - A process of economic exchange in the globe that

removes the barriers of the flow of goods

GLOBAL INTERSTATE SYSTEM - An organized institution that governs international relations for mutual
benefit.

BENEFITS OF THE UNITED NATIONS BROUGHT TO GLOBALIZATION

There were only 26 nations representatives pledge their governments to

1. To use its full resources, military or economic, against those members.

2. To cooperate with the government signatory

SELECTED INSTITUTIONS ASSOCIATED WITH WORLD TRADE

World Bank is a financial institution that extends financial assistance.

World Bank Group - International Bank Reconstruction and Development (IBRD) is an international
financial institution that offers loan to low to middle-income countries willing to improve their economy.

INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) - Its primary purpose is to provide loans to

INTERNATIONAL FINANCE CORPORATION (IFC) - Providing lost for private sectors in developing
countries

MULTILATERAL INVESTMENT GUARANTEE AGENCY(MIGA) - Promotes foreign direct investment (FDI)

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT

DISPUTES (ICSID) - An international organization of investors for investment treaties and laws and
contracts.

INTERNATIONAL MONETARY FUND (IMF) - Ensures the stability of the international monetary system.

World Trade Organization (WTO) - It regulates international trade's deals with the rule of trade
between nations.

Organization for Economic Cooperation and Development (OECD) - It consists of 35 member countries.
Stimulate economic progress and world trade.

INTERNATIONAL LABOR ORGANIZATION - A United Nations agency dealing with labor problems.

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (FAO) - A specialized agency of the
United Nations that lead international efforts to defeat hunger.
UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION - Contribute to peace
and security by promoting international collaboration.

WORLD HEALTH ORGANIZATION - Building a better, healthier future for people all over the world.

INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO) - To foster the planning and development of
international air transport.

INTERNATIONAL MARITIME ORGANIZATION (IMO) - Responsibility for the safety and security of
shipping and the prevention of marine pollution by ships.

INTERNATIONAL TELECOMMUNICATION UNION (ITU) - Connecting all the world's people.

UNIVERSAL POSTAL UNION (UPU) - Ensure a truly universal network of up-to-date products and
services.

WORLD METEOROLOGICAL ORGANIZATION (WMO) - A specialized agency of the United Nations for
meteorology (weather and climate)

WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO) - Intellectual property (IP) refers to creations
of the mind, such as inventions; literary and artistic works.

INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD) - Invest in rural people, empowering
them to increase their food security.

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION (UNIDO) - The specialized agency of the
United Nations that promote industrial development.

WORLD TOURISM ORGANIZATION (UNWTO)

- Responsible for the promotion of responsible, sustainable and universally accessible tourism.

The Contemporary Global Governance

Global Governance - collective effort to identify, understand and address worldwide problems.

The Model of Global Governance - It is the sum of laws, norms, policies, and institutions that define,
constitute, and mediate relations between citizens, societies, markets, and states.

United Nations Global Compact - This organization is the world's largest voluntary corporate
responsibility initiative bringing together companies.

Global Security - is in a state of instability and great uncertainty.

1. China is failing to be part of solution

2. India is an obstructionist

3. Iran is a rogue state

1. THE JURISDICTIONAL Gaps - Increasing need for global governance in many areas such as health.

2. The Incentive Gaps - The needs between international cooperation and the motivation.

3. THE PARTICIPATION GAPS - Refers to the fact that international cooperation remains the affair of
government

Expected Gaps in Global Governance

1. Knowledge Gaps - Not knowing the severity of the problems.

2. Normative Gaps - Establishing and developing norms to address the problems.

3. Policy Gaps - Creating Policies that every state can implement to address the stated problem.

4. Institutional Gaps - Challenges of implementing any policies

5. Compliance Gaps - Effective implementation and enforcement.

Multipolarity -International distribution of power.

Effective Governance in Multipolar world

1. Respecting national Sovereignty

2. Reducing the development gap between the north and south

3. Accommodating the interest of developing countries in global economic institutions

Unipolarity - The world is dominated by a single state.

Bipolarity - Bipolar system is one where two powers dominate.

Global Governance of Migration - affects more than one state

THE THREE LEVEL OF GOVERNANCE PRINCIPLES APPLY TO IMMIGRATION IN SEVERAL WAYS

1. Ensure that there is coherence across the emerging RCPs

2. A stronger system could yield great gain through collective action.

3. Greater accountability and inclusion in a system with proliferation.

THE GOVERNMENT AND THE STATE IN THE GLOBAL GOVERNANCE IN THE 21ST CENTURY

- It is creating new demands in for multilateral institutions and jumpstarting regionalism. (Finance,
Health, Migration and Security)
Global rules - is a timely examination of the conditions under which international rules of globalization.

THE RISE OF DEVELOPING ECONOMIES IN GLOBAL DISCUSSIONS OF FINANCE

The G7 - is an informal grouping of seven of the world's advanced economies, including Canada, France,
Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union

G10 - was created by Canada and United States with the finance officials.

China is set to become one the third most powerful shareholder.

Credit Crunch - sudden tightening of the conditions required to obtain a loan from banks.