The Global Monetary System, Research Paper Example

The Global Monetary system is primarily controlled by three main bodies i.e. The International Monetary Fund (IMF) , The World Trade Organization (WTO) and the World Bank (WB) .  The IMF is particularly important because it regulates and controls the balance of payments for each of the member states. It is also a lender of last resort in severe crisis situations and the most recent example of IMF intervention has been with the financial meltdown in Greece.  The Eurozone together with the IMF provided a €145 billion bailout package to rescue the Greek economy.  It was the IMF as the lender of last resort who footed €65 billion Euros of the total rescue package. (BBC World News, 2011).

The World Bank (WB) has the main objective of providing financial and technical assistance to the developing countries of the world.  It acts as a catalyst of change to promote growth and technological advancement in these countries.  The bank is reported to have 187 member countries and has a prime mission of fighting and reducing poverty in its member states.  The work of the world bank is supported by collaboration with a number of other important financial institutions that include the IFC, MIGA and ICSID [1].. (World Bank, 2011).

The World International Trade Organization (WTO) has the responsibility for promotion of trade between the member states. This is achieved primarily by Ministers and Ambassadors that meet to discuss and administer programs.  They meet on a regular basis in Geneva, Switzerland and normally hold a major summit meeting every 2 years.  The body has five main responsibilities:- (World Trade Organization, 2011)

1. Building trade relationships between member states
2. Resolution of trade disputes
3. Trade Negotiations
4. Implementing and Monitoring programs
5. Outreach and the building of trade capacity

References

BBC World News. (2011, 10 18). Eurozone approves massive greek bailout. Retrieved from BBC World News: http://news.bbc.co.uk/2/hi/8656649.stm

World Bank. (2011, 10 10). About us. Retrieved from World Bank: http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,pagePK:50004410~piPK:36602~theSitePK:29708,00.html

World Trade Organization. (2011, 10 18). Understanding the WTO | What we do. Retrieved from World Trade Organization: http://www.wto.org/english/thewto_e/whatis_e/what_we_do_e.htm

[1] International Finance Corporation (IFC); Multilateral Investment Guarantee Agency  (MIGA); International Centre for Investment Disputes (ICSID)