International Organisations and Trade Agreements
Essay
Discuss the contributions of international organisations and trade
agreements to global economic growth and development.
International organisations seek to manage globalisation (economic
integration between nations), and ensure a more equitable and complying
process of global economic growth (percentage growth in GDP) and economic
development (the overall measure of quality of life). These International
organisations, which include the International Monetary Fund (IMF), the World
Trade Organisation (WTO), the World Bank and the UN, as well as
Intergovernmental forums such as the G20 and G7 have had varying degrees
of effectiveness in the attainment of these two objectives.
International Monetary Fund
Whilst the IMF has recently been effective at assisting economies
experiencing financial stability issues during the Covid-19 pandemic, it has
historically been criticised for significant missteps. The IMF provides
surveillance of global economic and financial developments, policy
recommendation, lending in external stability crises, and technical assistance
aimed at the prevention of future crises. According to the IMF’s 2018 Review
of Program Design and Conditionality, the IMF has been successful or partially
successful in three-quarters of its programs between September 2011 and
2017, with this success reflected through its recently completed, $1.32 billion
three-year program with Serbia, which “outperformed on several of its goals”
(IMF). The program succeeded in facilitating the economy’s transition from the
second largest European deficit in 2014 to a surplus in 2017, increasing
consumer confidence by 17 percentage points, and driving an increase in both
economic growth by 3.7 percentage points (2014-2017) as well as the
country’s HDI by 14 points, reflecting economic development.
The predominant historical critique of the IMF has been in its structural
adjustment policies following the Washington Consensus, which are
composed of market-oriented reforms aimed at, amongst other objectives,
macroeconomic prudence, trade liberalisation and an opening to foreign direct
investment. During the Eurozone crisis, lending from the IMF, in line with these
austerity measures led to Greece’s GDP becoming 26% lower than IMF
forecasts, and unemployment more than doubling, with this decline in growth,
Essay
Discuss the contributions of international organisations and trade
agreements to global economic growth and development.
International organisations seek to manage globalisation (economic
integration between nations), and ensure a more equitable and complying
process of global economic growth (percentage growth in GDP) and economic
development (the overall measure of quality of life). These International
organisations, which include the International Monetary Fund (IMF), the World
Trade Organisation (WTO), the World Bank and the UN, as well as
Intergovernmental forums such as the G20 and G7 have had varying degrees
of effectiveness in the attainment of these two objectives.
International Monetary Fund
Whilst the IMF has recently been effective at assisting economies
experiencing financial stability issues during the Covid-19 pandemic, it has
historically been criticised for significant missteps. The IMF provides
surveillance of global economic and financial developments, policy
recommendation, lending in external stability crises, and technical assistance
aimed at the prevention of future crises. According to the IMF’s 2018 Review
of Program Design and Conditionality, the IMF has been successful or partially
successful in three-quarters of its programs between September 2011 and
2017, with this success reflected through its recently completed, $1.32 billion
three-year program with Serbia, which “outperformed on several of its goals”
(IMF). The program succeeded in facilitating the economy’s transition from the
second largest European deficit in 2014 to a surplus in 2017, increasing
consumer confidence by 17 percentage points, and driving an increase in both
economic growth by 3.7 percentage points (2014-2017) as well as the
country’s HDI by 14 points, reflecting economic development.
The predominant historical critique of the IMF has been in its structural
adjustment policies following the Washington Consensus, which are
composed of market-oriented reforms aimed at, amongst other objectives,
macroeconomic prudence, trade liberalisation and an opening to foreign direct
investment. During the Eurozone crisis, lending from the IMF, in line with these
austerity measures led to Greece’s GDP becoming 26% lower than IMF
forecasts, and unemployment more than doubling, with this decline in growth,
