World Bank
(IBRD - International Bank for Reconstruction and Development)
World Bank, owes its birth to the deliberations of United Nations Monetary and Financial Conference which met at Bretton woods, New Hampshire and the World Bank and the turn IMF were established world Bank was established in 1945 with HQ at Washington.
While the IMF provides short term loans to correct disequilibrium in Balance of payment, World Bank provides long term loans-
- To assist the reconstructions and reconstruction and development of terry tones of member nations destroyed or disrupted by wars
- To assist and encourage the development of less developed member countries.
- To promote private foreign investment by means of Guarantees or participation in loans and investment made by private investors & to supplement private investment by its own trances.
- To promote long range balanced growth of international trade and maintenance of equilibriums in the BOP of all members’ countries.
Any country is eligible for membership of WB if it subscribes to its charter under Bank’s Articles of Agreement Only those countries which are members of IMF can be considered for membership of W.B.
All the powers of control and management are vested in Board of governor.
India and WB
India is a founder member of Bank. She presided at the annual general meeting of the Bank held in Paris in 1950.
By 1958, India had become the single largest borrower of the bank.
A consortium of countries and international institutions interested in assisting India has been formed under the auspices of WB and is commonly known as Aid India club, now renamed India Development Forum.
Affiliates of WB
(1) International Development Association (IDA) IDA was started in 1960 as an affiliate of WB to make soft loans for long periods and low rate of interest. These loans were given for creating “Social Capital” such as construction of roads & bridges, slum clearance & urban development etc.
(2) International Finance Corporation (IFC) set up in 1955 to invest in private productive enterprises in association with private investors and without government guarantee of repayment. IFC stimulates productive investment of private capital, both foreign & domestic.
World Intellectual Property Organisation (WIPO)
- WIPO was established by WIPO Convention signed at Stockholm on July 14, 1967 and came into force on April 26, 1970. Its headquarters in Geneva, Switzer-land.
- It is responsible for promoting the progressive development and harmonization of Intellectual Property legislation, standards and procedures among member states.
- It aims to promote intellectual property into national development policies and programmes and develop international intellectual property laws and standards.
- It creates and disseminates a wealth of public outer each material to increase understanding of how to protect and benefit from the resulting intellectual property.
- It provides services to enable users to file international applications for patents and international registration for trademark designs & appellations of origin.
- With 184 countries as members and 250 organisations currently accredited as observers at WIPO meetings. In 1886, copyright entered international arena with Berne connection for protection of literacy and Artistic works.
- Kamil Idris is the Director General of WIPO
- Protection of Intellectual Property rights is guided by Paris Convention.
World Trade Organisation
General agreement on Tariff and Trade set up in 1947 to provide a framework for the conduct of trade relation by reducing trade barriers in inter-national trade and thus providing a set of rules of conduct.
Eight rounds of GATT were conducted initiating in Geneva in 1947. The eighth round known as Uruguay Round was announced in Marrakesh meeting in 1994 with signing of Final act by GATT members. It paved the way for setting up of WTO.
WTO agreement came into force from Jan 1, 1995 ‘GATT was not, really an org. It was just a legal arrangement while WTO is a new international organisation set up as a permanent body and de-signed to play the. Role of a watchdog in the sphere of trade in goods and trade in services, preign investment, and intellectual property rights etc.
The highest body is the Ministerial Conference. Jain agreement of WTO is agreement on agriculture agreement on trade in textiles and clothing or Multifibre Arrangement which calls for phasing out import quotas on textiles & clothing by 1 January, 2005.
Agreement on Trade related investment means uses calls for introducing national treatment of foreign investments and removed of quantitative restrictions. Agreement on Trade Related Intellectual Property Rights, agreement on services etc.
There is a dispute settlement Body, seeks to plug the loopholes and thus provide security and predictability to the multilateral trading system. It has now been made mandatory to settle a dispute within 18 months.
Subsidies
- Green Box: None distorting in terms of production and trade direct income support Unlinked to productions saving environment.
- Blue Box: Less trade distorting because white the directly links production to subsidies, They also set limits on production Eg - By quotas.
- Amber Box: Most trade distorting, primarily by encouraging excessive productions.
Doha Round of Negotiations
Fourth Ministerial meet took place at Doha in 2001. It entails certain features:
- Doha declaration announced the launch of a new round of negotiations to be concluded by Jan 1, 2005 called Doha Round.
- Doha declaration stated that aim would be substantial improvements in market access, reduction of and ultimately phasing out all trade distorting subsidies.
- TRIP and Public Wealth: The agreement can and should be interpreted & implemented in a manner suppositive of WTO members ‘right to protect public health.
- Environment & labour issues: Negotiations on environment issues were agreed to and labour issues were to be left to ILO.
- Greater access for industrial products of developing countries.
WTO Conferences
First - Singapore
Second - Geneva
Third - Seattle
Fourth - Doha
Fifth - Cancun
Sixth - Hongkong
Head - Pascal Hamy
United Nations conference on Trade Development (UNCTAD)
The Cairo Conference of the developing countries held in July 1962 on the problems of economic development passed the Cairo Declaration on Developing countries calling for conference on Trade & Deputed and constituting on International Trade Organisation which would consider vital questions relating to international trade of poor nations.
First UNCTAD was organised in Geneva from March to June 1964. UNCTAD was established as a permanent organ of UN General Assembly which defines the functions, activities and membership of UNCTAD. Trade and Development Board is the policy making body of UNCTAD.
The main purpose of creating UNCTAD is to pro-mote speedy development of underdeveloped countries by solving the problems of the sluggish expansions of their export trade, deficits in their external BOP and excessive burden of foreign debt etc.
UNCTAD II was organised in 1968 in New Delhi.
In 2005, UNCTAD launched Development India which is a comprehensive review of global trade and development performance, integrating key factors & indicators like international finance, trade performance, human capital and physical infrastructure. In a recent report India has been ranked at 86 m place while US first.
According to Trade and Development Report 2006, released by UNCTAD, India has become the tenth largest developing economy in terms of overseas investment received with $ 5.5 billion in 2004 while china tops the list. India did not figure among the top ten developing countries with the largest FDI inward Stock.
According to UNCTAD’s world Investment Report, India has emerged as the second most attractive location after China for Global FDI in 2007. India was the 4 largest suspecting of FDI during 2005-06.
UNCTAD has projected India’s economic growth for 2007-08 to be 8.5%, whereas china’s growth at 10.5% during same fiscal.
According to a survey conducted by world Economic Forum, India has been ranked 48m in Global Competitiveness Index 2008-08. US topping the list.
India ranks 69th in Global Economic Freedom India in 2005 according to Economic Freedom Index in 2005 according to Economic Federation of World Report 2007 released by commerce minister of India Kamal Nath.
Asian Development Bank (ADB)
ADB is a multinational development financial instillation established for the purpose of lending funds, promoting investment and providing technical assistance for promoting the economic and social progress of its developing member countries in Asia and Pacific region.
ADB with its HQ at Manila (Philippines) started its operation in 1966.
India is the third largest subscriber of ADB - after Japan and China.
South Asia Free Trade Agreement (SAFTA)
Agreement on SAFTA was signed during the 12th SAARC Summit on January 6, 2004 in Islamabad.
Negoliations Completed on:
- Rules of Origin
- Sensitive lists
- Revenue Compensation for LDCs
- Technical assistance to LDCs
The tariff liberalisation programme under the agreement has been implemented from July 1, 2006.
Asia Pacific Economic Cooperation
APEC was established in 1989 for the independent economic development of the countries of Asia-pacific regions.
- Members - 21
- India is not a member of APEC and further has to wait for its membership till 2010.
- HQ- Singapore
- Director - Piamsak Maria (Chile)
- Summit was held at Australia and the recent one, i.e. 19th summit was also hosted by Australia (SYDNEY).
Outcome
(1) Sydney declaration on climate change
(2) Energy security and clean development
(3) Setting specific goals on reducing energy intensity and increasing forest cause in the region by atleast 20 million hectares by 2020.
(4) Stand-alone statement on Doha round of WTO negotiation was also issued reaffirming leaders support for multilateral trading system.
- APEC countries represent 56% of world GDP & nearly half of the Global trade.
- Next APEC summit to be held in PERU (2008)
- Establishment - The five important industrialized countries formed G-5- Germany, Japan, Britain, France & US
- In 1976, Canada and Italy joined G-5 and it became G7.
- On 10 July, 1994, Russia joined G7 and finally present G-8 formed.
- 33rd G-8 summit took place in HELLIGEN DAMN (Germany).
Key Issues
- Grow & Responsibility was the central theme
- Climate protection & thus common goals for the reduction of green house gases.
- Helping Africa by increasing official developments assistance by 2010 & by US $ 25 billion each year.
- Fair investment Promotion by 2009.
For the first time developing countries like India, China, Brazil was invited in the 29th summit held at France.
