Describe the primary functions of the World Bank, the IMF, and the WTO. When was each of these organizations formed?

Question

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Answer 1

The IMF and the World Bank were outlined at the Bretton Woods Conference and began operations at the end of World War II. Both function as banks for national governments, with the IMF playing the role of lender of last resort and the World Bank focusing its loans on economic development. A nation facing a payments crisis can contact the IMF for a loan, but it may have to change its domestic policies as part of the price of the loan package. The World Bank initially focused its lending on rebuilding war-torn areas, but then broadened its focus to development. Only developing countries can borrow from the World Bank.

The World Trade Organization was not formed until 1994. An international organization to establish rules related to world trade, business practices, and international investment was proposed at the end of World War II, but was not created. A series of trade negotiations that focused primarily on lowering tariffs were launched. A number of rounds of GATT were completed and ultimately the round known as the Uruguay Round led to the formation of the WTO. The WTO focuses on the multilateral resolution of trade disputes and on continued negotiations to further reduce barriers to trade.