Explain the functions of the World Trade Organization (WTO) and the World Bank.

Question

What will be an ideal response?

Answer 1

Answers will vary.The 1986-1994 Uruguay Round of negotiations created theWTO, a permanent global institution to promote international trade and to settle international trade disputes. The WTO monitors provisions of theGeneral Agreement on Tariffs and Trade(GATT) agreements, promotes further reduction of trade barriers, and mediates disputes among members. The decisions of the WTO are binding, which means that all parties involved in disputes must comply to maintain good standing in the organization. Ministers of the WTO meet every two years to address current world trade issues. As the world economy has shifted toward services rather than goods, the emphasis of WTO meetings has followed suit. Controlling rampant piracy of intellectual property is a key concern for developed countries. For less-developed countries, one central issue is U.S. and European agricultural subsidies, which may unfairly distort agricultural prices worldwide. Established in the aftermath of World War II, theWorld Bankis an international cooperative of 188 member countries, working together to reduce poverty in the developing world. The World Bank influences the global economy by providing financial and technical advice to the governments of developing countries for projects in a range of areas, including infrastructure, communications, health, and education. The financial assistance usually comes in the form of low-interest loans. But to secure a loan, the borrowing nation must often agree to conditions that can involve rather arduous economic reform.