Topic 9 2023 UN SPECIALIZED AGENCIES-1

International Organizations. Prof. Dr.Dr. José Escribano. 2023.
UC3M
9. Specialized agencies of the United

Nations ( I )
A ) General characteristics
B ) The role of Specialized agencies in the scope of cultural and social
affairs: World Health organization. UNESCO. International Labour
Organization
C ) The role of specialized agencies in the economic field: World Bank.
International Monetary Fund. Others: Related Organization in the
UN System: World Trade Organization
A ) GENERAL CHARACTERISTICS
1. The UN specialized agencies are autonomous organizations working

with the United Nations.
2. All were brought into relationship with the UN through
negotiated agreements.
3. Some existed before the First World War.
4. Some were associated with the League of Nations.
5. Others were created almost simultaneously with the UN.
6. Others were created by the UN to meet emerging needs
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International Organizations. Prof. Dr.Dr. José Escribano. 2023. UC3M
B ) THE ROLE OF SPECIALIZED AGENCIES IN THE

SCOPE OF CULTURAL AND SOCIAL AFFAIRS:
WORLD HEALTH ORGANIZATION. UNESCO.
INTERNATIONAL LABOUR ORGANIZATION
WORLD HEALTH ORGANIZATION (WHO )

https://www.who.int/
WHO began when our Constitution came into force on 7 April 1948 – a date we
now celebrate every year as World Health Day. We are now more than 7000
people from more than 150 countries working in 150 country offices, in 6 regional
offices and at our headquarters in Geneva.
Constitution of WHO: principles

WHO remains firmly committed to the principles set out in the preamble to the
Constitution
Constitution of the World Health Organization: Principles
• Health is a state of complete physical, mental and social well-being and
not merely the absence of disease or infirmity.
• The enjoyment of the highest attainable standard of health is one of the
fundamental rights of every human being without distinction of race,
religion, political belief, economic or social condition.
• The health of all peoples is fundamental to the attainment of peace and
security and is dependent on the fullest co-operation of individuals and
States.
• The achievement of any State in the promotion and protection of health is
of value to all.
• Unequal development in different countries in the promotion of health
and control of diseases, especially communicable disease, is a common
danger.
• Healthy development of the child is of basic importance; the ability to live
harmoniously in a changing total environment is essential to such
development.
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• The extension to all peoples of the benefits of medical, psychological and

related knowledge is essential to the fullest attainment of health.
• Informed opinion and active co-operation on the part of the public are of
the utmost importance in the improvement of the health of the people.
• Governments have a responsibility for the health of their peoples which
can be fulfilled only by the provision of adequate health and social
measures.
GOVERNING BODIES
The World Health Assembly is the supreme decision-making body for WHO. It
generally meets in Geneva in May each year, and is attended by delegations from
all 194 Member States. Its main function is to determine the policies of the
Organization. The Health Assembly appoints the Director-General, supervises
the financial policies of the Organization, and reviews and approves the Proposed
programme budget. It similarly considers reports of the Executive Board, which
it instructs in regard to matters upon which further action, study, investigation
or report may be required.
The Executive Board is composed of 34 members technically qualified in the field
of health. Members are elected for three-year terms. The main Board meeting, at
which the agenda for the forthcoming Health Assembly is agreed upon and
resolutions for forwarding to the Health Assembly are adopted, is held in
January, with a second shorter meeting in May, immediately after the Health
Assembly, for more administrative matters. The main functions of the Board are
to give effect to the decisions and policies of the Health Assembly, to advise it and
generally to facilitate its work.
UNESCO
https://en.unesco.org/
UNESCO is the United Nations Educational, Scientific and Cultural Organization.

It seeks to build peace through international cooperation in Education, the
Sciences and Culture. UNESCO's programmes contribute to the achievement of
the Sustainable Development Goals defined in Agenda 2030, adopted by the UN
General Assembly in 2015.
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UNESCO'S HISTORY
As early as 1942, in wartime, the governments of the European countries, which
were confronting Nazi Germany and its allies, met in the United Kingdom for the
Conference of Allied Ministers of Education (CAME). The Second World War was
far from over, yet those countries were looking for ways and means to reconstruct
their systems of education once peace was restored. Very quickly, the project
gained momentum and soon took on a universal note. New governments,
including that of the United States, decided to join in.Upon the proposal of
CAME, a United Nations Conference for the establishment of an educational and
cultural organization (ECO/CONF) was convened in London from 1 to 16
November 1945. Scarcely had the war ended when the conference opened. It
gathered together the representatives of forty-four countries who decided to
create an organization that would embody a genuine culture of peace. In their
eyes, the new organization must establish the “intellectual and moral solidarity of
mankind” and, in so doing, prevent the outbreak of another world war. Read more
about UNESCO history in UNESCO Archives
Constitution of the United Nations Educational, Scientific and Cultural
Organization Adopted in London on 16 November 1945.
GOALS
Political and economic arrangements of governments are not enough to secure

the lasting and sincere support of the peoples. Peace must be founded upon
dialogue and mutual understanding. Peace must be built upon the intellectual
and moral solidarity of humanity.
In this spirit, UNESCO develops educational tools to help people live as global
citizens free of hate and intolerance. UNESCO works so that each child and citizen
has access to quality education. By promoting cultural heritage and the equal
dignity of all cultures, UNESCO strengthens bonds among nations. UNESCO
fosters scientific programmes and policies as platforms for development and
cooperation. UNESCO stands up for freedom of expression, as a fundamental
right and a key condition for democracy and development. Serving as a laboratory
of ideas, UNESCO helps countries adopt international standards and manages
programmes that foster the free flow of ideas and knowledge sharing.
UNESCO's founding vision was born in response to a world war that was marked
by racist and anti-Semitic violence. Seventy years on and many liberation
struggles later, UNESCO’s mandate is as relevant as ever. Cultural diversity is
under attack and new forms of intolerance, rejection of scientific facts and threats
to freedom of expression challenge peace and human rights. In response,
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UNESCO's duty remains to reaffirm the humanist missions of education, science

and culture.
UNESCO HEADQUARTERS
Located on the Place de Fontenoy, in Paris, the main building which houses the
Headquarters of UNESCO was inaugurated on 3 November 1958. The Y-shaped
design was invented by three architects of different nationalities under the
direction of an international committee. Nicknamed the ‘three-pointed star’, the
entire edifice stands on seventy-two columns of concrete piling. It is world
famous, not only because it is the home of a well-known organization but also
because of its outstanding architectural qualities. Three more buildings complete
the headquarters site. The second building, known affectionately as the
"accordion", holds the egg-shaped hall with a pleated copper ceiling where the
plenary sessions of the General Conference are held. The third building is in the
form of a cube. Lastly, a fourth construction consists of two office floors hollowed
out below street level, around six small sunken courtyards. The buildings, which
contain many remarkable works of art, are open to the public. As soon as the
architectural plans for the site at the Place de Fontenoy had been approved,
UNESCO commissioned a number of great artists to create works to adorn the
future premises. In some cases, the works are also intended to evoke the peace
that the institution has sought to establish and preserve throughout the world.
Over the years, other works were acquired. Some were donated to the
Organization by various Member States. Picasso, Bazaine, Miro, Tapiès, Le
Corbusier and many other artists, both famous and unknown, all have their place
in this universal museum that echoes the diversity of artistic creation throughout
the world.
KEY FACTS : A SELECTION OF UNESCO'S SUCCESS

STORIES
UNESCO preserves 1073 World Heritage sites in 167 countries
UNESCO coordinates Tsunami early warning systems all over the

globe
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UNESCO leads global efforts to reach quality education for all
UNESCO stands up for freedom of expression and condemns the

killing of journalists
UNESCO published General Histories of Humanity, Africa, Asia,

Islamic Culture, the Caribbean…
193 Member States, 11 Associate Members, 11 000 Associated

Schools…
177 State Parties to the Intangible Heritage
The General Conference
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The General Conference consists of the representatives of UNESCO's Member States. It

meets every two years, and is attended by Member States and Associate Members, together
with observers for non-Member States, intergovernmental organizations and non-
governmental organizations (NGOs). Each country has one vote, irrespective of its size or the
extent of its contribution to the budget.
The General Conference determines the policies and the main lines of work of the
Organization. Its duty is to set the programmes and the budget of UNESCO. It also elects the
Members of the Executive Board and appoints, every four years, the Director-General. The
working languages of the General Conference are Arabic, Chinese, English, French, Russian
and Spanish.
The Executive Board

The Executive Board ensures the overall management of UNESCO. It prepares the work of
the General Conference and sees that its decisions are properly carried out. The functions
and responsibilities of the Executive Board are derived primarily from the Constitution and
from rules or directives laid down by the General Conference.
Every two years the General Conference assigns specific tasks to the Board. Other functions
stem from agreements concluded between UNESCO and the United Nations, the specialized
UN agencies and other intergovernmental organizations.
The Executive Board’s fifty-eight members are elected by the General Conference. The
choice of these representatives is largely a matter of the diversity of the cultures they
represent, as well as their geographic origin. Skillful negotiations may be needed before a
balance is reached among the different regions of the world in a way that will reflect the
universality of the Organization. The Executive Board meets twice a year.
The Secretariat
The Secretariat is the Executive Branch of the organisation. It consists of the Director-
General and the Staff appointed by him or her. The staff is divided into Professional and
General Service categories. About 700 staff members work in UNESCO's 65 field offices
around the world.
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INTERNATIONAL LABOUR ORGANIZATION ( ILO )
HISTORY
As the ILO celebrated its 100th anniversary in 2019, it is timely to reflect on the
many life-changing events which are linked to the ten decades of ILO history.
The Organization has played a role at key historical junctures – the Great
Depression, decolonization, the creation of Solidarność in Poland, the victory
over apartheid in South Africa – and today in the building of an ethical and
productive framework for a fair globalization.
It was created in 1919, as part of the Treaty of Versailles that ended World
War I, to reflect the belief that universal and lasting peace can be accomplished
only if it is based on social justice.
n 1946, the ILO became a specialized agency of the newly formed
United Nations.
In May 2012, Guy Ryder (UK) was elected as the tenth Director-General of the
ILO. He was re-elected to his second five-year term in November 2016. Ryder has
emphasised that the future of work is not predetermined: Decent work for all is
possible but societies have to make it happen. It is precisely with this imperative
that the ILO established its Global Commission on the Future of Work as part of
its initiative to mark its centenary in 2019.
Mission and impact of the ILO
Promoting jobs, Protecting people
The International Labour Organization (ILO) is devoted to promoting social
justice and internationally recognized human and labour rights, pursuing its
founding mission that social justice is essential to universal and lasting peace.
Only tripartite U.N. agency, the ILO brings together governments, employers and
workers representatives of 187 member States , to set labour standards, develop
policies and devise programmes promoting decent work for all women and men.
Today, the ILO's Decent Work agenda helps advance the economic and working
conditions that give all workers, employers and governments a stake in lasting
peace, prosperity and progress.
Since 1919, the International Labour Organization has maintained and developed
a system of international labour standards aimed at promoting opportunities for
women and men to obtain decent and productive work, in conditions of freedom,
equity, security and dignity. In today's globalized economy, international labour
standards are an essential component in the international framework for
ensuring that the growth of the global economy provides benefits to all.
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Four strategic objectives at the heart of the Decent Work agenda

• Set and promote standards and fundamental principles and rights at work
• Create greater opportunities for women and men to decent employment
and income
• Enhance the coverage and effectiveness of social protection for all
• Strengthen tripartism and social dialogue
ILO and Goal 8

Decent work and the 2030 Agenda for sustainable development
After several years of intensive negotiations and dialogue bringing together not
only governments, civil society but also millions of ordinary people around the
world, UN member states have unanimously agreed what UN Secretary-General
Ban Ki-moon has described as the “most inclusive development agenda the world
has ever seen”.
The 2030 Agenda embraces the three dimensions of sustainability – economic,

social and environmental. It has 17 Sustainable Development Goals (SDGs) that
will build on the progress achieved under the Millennium Development Goals
(MDGs) . It was formally adopted by world leaders gathering at a United Nations
special summit in September 2015 in New York.
The 2030 Agenda for sustainable development puts people and planet at its
centre and gives the international community the impetus it needs to work
together to tackle the formidable challenges confronting humanity, including
those in the world of work.
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Decent work – Key to sustainable development

It is estimated that over 600 million new jobs need to be created by 2030, just to
keep pace with the growth of the global working age population. That’s around
40 million per year. We also need to improve conditions for the some 780 million
women and men who are working but not earning enough to lift themselves and
their families out of USD 2 a-day poverty.
The importance of decent work in achieving sustainable development is

highlighted by Goal 8 which aims to “promote sustained, inclusive and
sustainable economic growth, full and productive employment and decent work
for all”.
How the ILO works
Tripartism and social dialogue

Underlying the ILO’s work is the importance of cooperation between
governments and employers’ and workers’ organizations in fostering social and
economic progress.
The ILO aims to ensure that it serves the needs of working women and men by
bringing together governments, employers and workers to set labour standards,
develop policies and devise programmes. The very structure of the ILO, where
workers and employers together have an equal voice with governments in its
deliberations, shows social dialogue in action. It ensures that the views of the
social partners are closely reflected in ILO labour standards, policies and
programmes.
The ILO encourages this tripartism within its constituents - employers ,

workers and member States , by promoting a social dialogue between trade
unions and employers in formulating, and where appropriate, implementing
national policy on social, economic, and many other issues.
Main bodies
The ILO accomplishes its work through three main bodies which comprise
governments', employers' and workers' representatives:
• the International labour Conference sets the International labour
standards and the broad policies of the ILO. It meets annually in Geneva.
Often called an international parliament of labour, the Conference is also
a forum for discussion of key social and labour questions.
• the Governing body is the executive council of the ILO. It meets three
times a year in Geneva. It takes decisions on ILO policy and establishes the
programme and the budget, which it then submits to the Conference for
adoption.
• the International Labour Office is the permanent secretariat of the
International Labour Organization. It is the focal point for International
Labour Organization's overall activities, which it prepares under the
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scrutiny of the Governing Body and under the leadership of the Director-
General .
The work of the Governing Body and of the Office is aided by tripartite
committees covering major industries. It is also supported by committees of
experts on such matters as vocational training, management development,
occupational safety and health, industrial relations, workers’ education, and
special problems of women and young workers.
• Regional meetings of the ILO member States are held periodically to

examine matters of special interest to the regions concerned.
Standards supervisory system
International labour standards are backed by a supervisory system that is unique
at the international level and that helps to ensure that countries implement the
conventions they ratify. The ILO regularly examines the application of standards
in member states and points out areas where they could be better applied. If there
are any problems in the application of standards, the ILO seeks to assist countries
through social dialogue and technical assistance.
The ILO has developed various means of supervising the application of

Conventions and Recommendations in law and practice following their adoption
by the International Labour Conference and their ratification by States. There are
two kinds of supervisory mechanism
Partnering for development
Since the early 1950s, the ILO has been providing technical cooperation to
countries on all continents and at all stages of economic development. Projects
are implemented through close cooperation between recipient countries, donors,
and the ILO, which maintains a network of country offices worldwide.
Development cooperation builds bridges between the ILO’s standard-setting role

and women and men everywhere. It is essential to give people decent work
opportunities and an important means of assisting our constituents – workers,
employers and governments – in making the Decent Work Agenda a reality.
Simply put, development cooperation supports the technical, organizational and
institutional capacities of ILO constituents for them to put in place meaningful
and coherent social policy and ensure sustainable development.
With over 50 years of experience in development cooperation on all continents

and at all stages of development, the ILO today has over 600 programmes and
projects in more than 100 countries – with the support of 120 development
partners.
Programme and budget
The Programme and Budget of the Organization which sets out the strategic
objectives and expected outcomes for the Organization’s work is approved every
two years by the International Labour Conference.
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C ) The role of specialized agencies in the economic

field: World Bank. International Monetary Fund.
Related Organization in the UN System: World
Trade Organization
WORLD BANK GROUP
The World Bank focuses on poverty reduction and the improvement of living
standards worldwide by providing low-interest loans, interest-free credit, and
grants to developing countries for education, health, infrastructure, and
communications, among other things. The World Bank works in over 100
countries.
• International Bank for Reconstruction and
Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency (MIGA)
• International Centre for Settlement of Investment
Disputes (ICSID)
The World Bank Group has set two goals for the world to achieve by 2030:
• End extreme poverty by decreasing the percentage of people living on less
than $1.90 a day to no more than 3%
• Promote shared prosperity by fostering the income growth of the bottom
40% for every country
The World Bank is a vital source of financial and technical assistance to
developing countries around the world. We are not a bank in the ordinary sense
but a unique partnership to reduce poverty and support development. The World
Bank Group comprises five institutions managed by their member countries.
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Established in 1944, the World Bank Group is headquartered in Washington,

D.C. We have more than 10,000 employees in more than 120 offices worldwide.
Financial Products and Services

We provide low-interest loans, zero to low-interest credits, and grants to
developing countries. These support a wide array of investments in such areas as
education, health, public administration, infrastructure, financial and private
sector development, agriculture, and environmental and natural resource
management. Some of our projects are cofinanced with governments, other
multilateral institutions, commercial banks, export credit agencies, and private
sector investors.
We also provide or facilitate financing through trust fund partnerships with
bilateral and multilateral donors. Many partners have asked the Bank to help
manage initiatives that address needs across a wide range of sectors and
developing regions.
Innovative Knowledge Sharing
We offer support to developing countries through policy advice, research and
analysis, and technical assistance. Our analytical work often underpins World
Bank financing and helps inform developing countries’ own investments. In
addition, we support capacity development in the countries we serve. We also
sponsor, host, or participate in many conferences and forums on issues of
development, often in collaboration with partners.
To ensure that countries can access the best global expertise and help generate
cutting-edge knowledge, the Bank is constantly seeking to improve the way it
shares its knowledge and engages with clients and the public at large. Key
priorities include:
• Results: We continue to sharpen our focus on helping developing
countries deliver measurable results.
• Reform: We are working to improve every aspect of our work: how projects
are designed, how information is made available (Access to Information),
and how to bring our operations closer to client governments and
communities.
• Open Development: We offer a growing range of free, easy-to-access tools,
research and knowledge to help people address the world's development
challenges. For example, the Open Data website offers free access to
comprehensive, downloadable indicators about development in countries
around the globe. We have also made World Bank Live—live discussions
open to participants worldwide—a key part of our Spring and Annual
Meetings with the International Monetary Fund.
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ORGANIZATION
The World Bank is like a cooperative, made up of 189 member countries. These
member countries, or shareholders, are represented by a Board of Governors,
who are the ultimate policymakers at the World Bank. Generally, the governors
are member countries' ministers of finance or ministers of development. They
meet once a year at the Annual Meetings of the Boards of Governors of the World
Bank Group and the International Monetary Fund.
The governors delegate specific duties to 25 Executive Directors, who work on-
site at the Bank. The five largest shareholders appoint an executive director, while
other member countries are represented by elected executive directors.
• The World Bank Group President chairs meetings of the Boards of
Directors and is responsible for overall management of the Bank. The
President is selected by the Board of Executive Directors for a five-year,
renewable term.
• The Executive Directors make up the Boards of Directors of the World
Bank. They normally meet at least twice a week to oversee the Bank's
business, including approval of loans and guarantees, new policies, the
administrative budget, country assistance strategies and borrowing and
financial decisions.
The World Bank operates day-to-day under the leadership and direction of the
president, management and senior staff, and the vice presidents in charge
of Global Practices, Cross-Cutting Solutions Areas, regions, and functions.
• International Bank for Reconstruction and

Development (IBRD)
The International Bank for Reconstruction and Development (IBRD) is a global

development cooperative owned by 189 member countries. As the largest
development bank in the world, it supports the World Bank Group’s mission by
providing loans, guarantees, risk management products, and advisory services to
middle-income and creditworthy low-income countries, as well as by
coordinating responses to regional and global challenges.
Created in 1944 to help Europe rebuild after World War II, IBRD joins with IDA,
our fund for the poorest countries, to form the World Bank. They work closely
with all institutions of the World Bank Group and the public and private sectors
in developing countries to reduce poverty and build shared prosperity
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A Partner to Middle-Income Countries

The World Bank Group engages with middle-income countries (MICs) both as
clients and shareholders. These countries are major drivers of global growth,
home to major infrastructure investments, and recipients of a large share of
exports from advanced economies and poorer countries. Many are making rapid
economic and social progress, and they play an ever larger role in finding
solutions to global challenges.
But MICs also have more than 70% of the world’s poor people, often in remote
areas. And limited access to private finance makes these countries vulnerable to
economic shocks and the crises that cross borders, including climate change,
forced migration, and pandemics. The World Bank is an essential partner to
MICs, which represent more than 60% of IBRD’s portfolio.
• We provide a combination of financial resources, knowledge, and technical
services.
• Our strategic advice helps governments reform to improve services,
encourage more private investment, and innovate and share solutions.
• We partner with countries as challenges emerge and evolve, through
innovative financial products and a wide range of global forums.
Above all, we help ensure that progress in reducing poverty and broadening
prosperity can be sustained. We place special emphasis on supporting lower-
middle-income countries as they move up the economic chain, graduating from
IDA to become clients of IBRD. We are also expanding capacity to help countries
dealing with fragility and conflict situations. And as a long-term partner, we step
up our support to all MICs in times of crisis.
IBRD’s Services
Through our partnership with MICs and creditworthy poorer countries, IBRD
offers innovative financial solutions, including financial products (loans,
guarantees, and risk management products) and knowledge and advisory services
(including on a reimbursable basis) to governments at the national and
subnational levels.
IBRD finances investments across all sectors and provides technical support and
expertise at each stage of a project. IBRD’s resources not only supply borrowing
countries with needed financing, but also serve as a vehicle for global knowledge
transfer and technical assistance.
Advisory services in public debt and asset management help governments,
official sector institutions, and development organizations build institutional
capacity to protect and expand financial resources.
IBRD supports government efforts to strengthen public financial management as
well as improve the investment climate, address service delivery bottlenecks, and
strengthen policies and institutions.
How IBRD Is Financed

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IBRD raises most of its funds in the world's financial markets. This has allowed it
to provide more than $500 billion in loans to alleviate poverty around the world
since 1946, with its shareholder governments paying in about $14 billion in
capital.
IBRD has maintained a triple-A rating since 1959. This high credit rating allows
it to borrow at low cost and offer middle-income developing countries access to
capital on favorable terms — helping ensure that development projects go
forward in a more sustainable manner, while often complementing or catalyzing
private financing.
IBRD earns income every year from the return on its equity and from the small
margin it makes on lending. This pays for World Bank operating expenses, goes
into reserves to strengthen the balance sheet, and provides an annual transfer of
funds to IDA, the fund for the poorest countries
• International Development Association (IDA)

Launch of IDA
• With an initial funding of $912.7 million, IDA was launched on September 24,
1960 with 15 signatory countries - Australia, Canada, China, Germany, India,
Italy, Malaysia, Norway, Pakistan, Sudan, Sweden, Thailand, United Kingdom,
United States, and Vietnam. Within its first eight months of launch, IDA had 51
members and allocated credits worth $101 million to four countries. Honduras
received the first IDA credit for highway maintenance. Chile, Sudan, and India
were the other three recipients.
• IDA has grown to include 173 member countries, and has become the leading
source of concessional lending to 75 of the world’s poorest countries, with 39
countries in Africa. Overall, 44 countries have graduated from IDA and some
have ‘reverse-graduated’ or re-entered IDA. Since its inception, IDA credits and
grants have totaled $369 billion, averaging $20 billion over the last years 2016
-2018.
• The International Development Association (IDA) is the part of the World
Bank that helps the world’s poorest countries. Overseen by 173
shareholder nations, IDA aims to reduce poverty by providing loans (called
“credits”) and grants for programs that boost economic growth, reduce
inequalities, and improve people’s living conditions.
• IDA complements the World Bank’s original lending arm—the International
Bank for Reconstruction and Development (IBRD). IBRD was established to
function as a self-sustaining business and provides loans and advice to middle-
income and credit-worthy poor countries. IBRD and IDA share the same staff
and headquarters and evaluate projects with the same rigorous standards.
• IDA is one of the largest sources of assistance for the world’s 75 poorest
countries, 39 of which are in Africa, and is the single largest source of donor
funds for basic social services in these countries.
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• IDA lends money on concessional terms. This means that IDA credits have a
zero or very low interest charge and repayments are stretched over 30 to
38 years, including a 5- to 10-year grace period. IDA also provides grants to
countries at risk of debt distress.
• In addition to concessional loans and grants, IDA provides significant levels of
debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and
the Multilateral Debt Relief Initiative (MDRI).
• In the fiscal year ending June 30, 2018, IDA commitments totaled $24 billion, of
which 21 percent was provided on grant terms. New commitments in
FY18 comprised 206 new operations. Since 1960, IDA has provided
$369 billion for investments in 113 countries. Annual commitments have
increased steadily and averaged about $20 billion over the last three years.
• IDA is a multi-issue institution, supporting a range of development activities
that pave the way toward equality, economic growth, job creation, higher
incomes, and better living conditions. IDA's work covers primary education,
basic health services, clean water and sanitation, agriculture, business climate
improvements, infrastructure, and institutional reforms.
• The International Development Association (IDA) is the part of the World Bank
that helps the world’s poorest countries. Overseen by 173 shareholder nations,
IDA aims to reduce poverty by providing loans (called “credits”) and grants for
programs that boost economic growth, reduce inequalities, and improve
people’s living conditions.
• IDA complements the World Bank’s original lending arm—the International
Bank for Reconstruction and Development (IBRD). IBRD was established to
function as a self-sustaining business and provides loans and advice to middle-
income and credit-worthy poor countries. IBRD and IDA share the same staff
and headquarters and evaluate projects with the same rigorous standards.
• IDA is one of the largest sources of assistance for the world’s 75 poorest
countries, 39 of which are in Africa, and is the single largest source of donor
funds for basic social services in these countries.
• IDA lends money on concessional terms. This means that IDA credits have a
zero or very low interest charge and repayments are stretched over 30 to
38 years, including a 5- to 10-year grace period. IDA also provides grants to
countries at risk of debt distress.
• In addition to concessional loans and grants, IDA provides significant levels of
debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and
the Multilateral Debt Relief Initiative (MDRI).
• In the fiscal year ending June 30, 2018, IDA commitments totaled $24 billion, of
which 21 percent was provided on grant terms. New commitments in
FY18 comprised 206 new operations. Since 1960, IDA has provided
$369 billion for investments in 113 countries. Annual commitments have
increased steadily and averaged about $20 billion over the last three years.
• IDA is a multi-issue institution, supporting a range of development activities
that pave the way toward equality, economic growth, job creation, higher
incomes, and better living conditions. IDA's work covers primary education,
basic health services, clean water and sanitation, agriculture, business, etc.
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How Does IDA Work?

IDA is overseen by its 173 shareholder countries, which comprise the Board of
Governors. The day-to-day development work of IDA is managed by Bank operational
staff, governments, and implementing agencies.
IDA has historically been funded largely by contributions from the governments of its
member countries (see box on IDA contributors). Donors meet every three years to
replenish IDA resources and review its policy framework. The replenishment process
typically consists of four formal meetings held over the course of one year. In addition
to officials from the now 50+ donor governments (known as “IDA Deputies”),
representatives of borrowing member countries are invited to participate to help
ensure that IDA’s policy and financing frameworks are responsive to country needs.
Policy papers discussed during the replenishment negotiations are disclosed to the
public, and the draft replenishment agreement is posted on the web for public
comment prior to the last replenishment meeting. IDA staff also engages with civil
society organizations (CSOs), foundations and think tanks around the world on an
ongoing basis.
The financing package offers exceptional value for money—with every $1 in partner
contributions generating about $3 in spending authority—and is one of the most
concrete and significant commitments to date to scale up financing to achieve the
Sustainable Development Goals.
How IDA funds are allocated. IDA borrowers have very significant needs for
concessional funds. But the amount of funds available, which is fixed once
contributions are pledged by donor governments, is below what countries need. IDA
must therefore make decisions about how to allocate scarce resources among eligible
countries. Allocation decisions are based on several criteria, including countries’
income levels and performance record in managing their economies and ongoing IDA
projects.
To be eligible for funds, countries must first meet the following criteria:
• Relative poverty defined as GNI per capita must be below an established threshold
(updated annually). In fiscal year 2019, this was $1,145.
• Lack of creditworthiness to borrow on market terms and therefore have a need for
concessional resources to finance the country’s development program.
Countries are then assessed to determine how well they implement policies that
promote economic growth and poverty reduction. This is done through the Country
Policy and Institutional Assessment. This assessment and portfolio performance
together constitute the IDA Country Performance Rating. In addition to the rating,
population and per capita income also determine IDA allocations. These ratings are
disclosed on IDA’s website.
Lending terms. IDA offers a range of financing products—from grants to loans on IBRD
terms—that take into account the variations in economic and social development of
IDA countries.
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• International Finance Corporation (IFC)
A strong and engaged private sector is indispensable to ending extreme poverty

and boosting shared prosperity. That’s where IFC comes in—we have more than
60 years of experience in unlocking private investment, creating markets and
opportunities where they’re needed most. Since 1956, IFC has leveraged $2.6
billion in capital to deliver more than $265 billion in financing for businesses in
developing countries.
Investment
Our financial products enable companies to manage risk and expand their access
to foreign and domestic capital markets. IFC operates on a commercial basis. We
invest exclusively in for-profit projects in developing countries, and we charge
market rates for our products and services.
In 2018, IFC made $11.6 billion in long-term investments in 366 projects. In
addition, IFC mobilized nearly $11.7 billion to support the private sector in
developing countries.
Advice
Providing advice is a critical part of IFC’s strategy to create markets and mobilize
private investment. Through this work, we help establish the necessary
conditions that will attract the most private capital, enabling the private sector to
grow.
IFC is shifting to a more strategic approach, systematically linking our advisory
programs to the greatest needs identified in World Bank Group country and
sector strategies. We will increasingly focus on developing high-impact projects
that can help our clients attract the financing they need—particularly in the
poorest and most conflict-affected areas of the world.
IFC helps companies:

o Attract private investors and partners, enter new markets, and increase
their impact. We provide tailored market insights as well as advice on how
to improve companies’ operational performance and sustainability.
o Adopt good practices and standards to increase competitiveness and
productivity
IFC helps governments:

o Structure public-private partnerships to improve people’s access to high-
quality infrastructure and basic services.
o Implement reforms that encourage private investment.
IFC’s advisory platform consists of seasoned experts, with 80 percent of our
advisory staff based in the field. In FY17, we increased our advisory portfolio by
10 percent from the previous year to $1.5 billion, encompassing more than 700
advisory projects in about 100 countries. More than 60 percent of IFC’s advisory
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program was in IDA countries, and 20 percent was in fragile and conflict-affected
areas. More than a quarter of our advisory program was climate-related.
How IFC works with companies

Agribusiness: IFC helps companies improve productivity and standards by
creating efficient value chains, ensuring food security, and providing strong
economic, social, and environmental benefits for smaller farming enterprises and
communities, among other things.
Infrastructure and Natural Resources: IFC works with companies to
increase benefits to local communities and mitigate local risks in projects.
Corporate Finance Services: IFC helps companies enter new markets,
attract investors, and structure complex projects, offering advice on the design
and execution of mergers, acquisitions, and partnerships.
Energy and Water Advisory: IFC supports the use of energy and water
more efficiently to enhance companies' performance and environmental
sustainability. We also accelerate the development of renewable-energy markets
and improve people’s access to modern energy services.
Green Buildings: IFC works with companies to construct buildings that use
energy, water, and materials more efficiently—by offering tools and training. We
also help governments establish related policy frameworks and work with banks
to launch green-finance products.
Small and Medium Enterprises and Value Chains: IFC helps SMEs
strengthen their skills and performance, improving their ability to participate in
the supply and distribution networks of larger firms. We advise companies and
governments on how to improve working conditions and boost the
competitiveness of the textile sector’s supply chain.
Gender Equality: IFC works with companies to enhance the recruitment,
retention, and promotion of women. We also help them increase women’s access
to financial services, technology, information, and markets.
Strategic Business Solutions: IFC assists companies in expanding access to
capital, mitigating risk, and safeguarding against mismanagement by improving
their corporate governance.
Environmental, Social, and Governance Issues: IFC helps companies do
business in a sustainable way by promoting sound environmental, social, and
governance practices.
How IFC works with financial institutions and funds

Financial Institutions: IFC helps clients strengthen risk management and
diversify product offerings—in categories such as SME finance, gender, housing
finance, and sustainable energy. We also work with the World Bank to promote
universal access to finance, strengthen capital markets, and establish credit
bureaus and collateral registries.
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Fund Managers: IFC helps develop the private equity industry in frontier
markets and provide advice to fund managers and SMEs in which the funds
invest.
How IFC works with governments

Public-Private Partnerships: We support governments to design and
implement PPPs that are tailored to local needs, help solve infrastructure
bottlenecks, and achieve national development goals.
Financial Sector: We work with governments and the private sector to build
resilient, transparent, and smooth-functioning financial systems and capital
markets.
Investment Climate: We help improve the business environment—through
reforms that promote investment, spur growth, and create jobs.
2030 Water Resources Group (2030 WRG): We bring together
governments, civil society, and the private sector to identify investment needs
and drive reform to address water scarcity. On January 1, 2018, 2030 WRG will
move to the World Bank’s Water Global Practice.
Loans
IFC finances projects and companies through loans from our own account,
typically for seven to 12 years. We also make loans to intermediary banks, leasing
companies, and other financial institutions for on-lending.
While IFC loans traditionally have been denominated in the currencies of major
industrial nations, we have made it a priority to structure local-currency
products. IFC has provided financing in 74 local currencies.
In fiscal year 2018, we made commitments for $9.8 billion in new loans for our
own account.
A company or entrepreneur seeking to establish a new venture or expand an
existing enterprise can approach IFC directly.
The investment proposal can be submitted to the IFC field office that is closest to
the location of the proposed project.
• Multilateral Investment Guarantee Agency (MIGA)
The idea for a multilateral political risk insurance provider was floated
long before MIGA’s establishment—in fact as far back as 1948. But it was not until
September 1985 that this idea started to become a reality. At that time the World
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Bank’s Board of Governors began the process of creating a new investment

insurance affiliate by endorsing the MIGA convention that defined its core
mission: "to enhance the flow to developing countries of capital and technology
for productive purposes under conditions consistent with their developmental
needs, policies and objectives, on the basis of fair and stable standards to the
treatment of foreign investment."
On April 12, 1988 an international convention established MIGA as
the newest member of the World Bank Group. The agency opened for
business as a legally separate and financially independent entity. Membership
was open to all IBRD members, and the agency began with capital stock of $1
billion. MIGA’s original 29 members were: Bahrain, Bangladesh, Barbados,
Canada, Chile, Cyprus, Denmark, Ecuador, Egypt, Germany, Grenada, Indonesia,
Jamaica, Japan, Jordan, Korea, Kuwait, Lesotho, Malawi, Netherlands, Nigeria,
Pakistan, Samoa, Saudi Arabia, Senegal, Sweden, Switzerland, United Kingdom,
and United States.
MIGA was created to complement public and private sources of
investment insurance against non-commercial risks in developing
countries. MIGA’s multilateral character and joint sponsorship by developed
and developing countries were seen as significantly enhancing confidence among
cross-border investors.
Today, MIGA’s mission is straightforward: To promote foreign direct
investment into developing countries to support economic growth,
reduce poverty and improve people’s lives.
The Multilateral Investment Guarantee Agency (MIGA) is a member of the

World Bank Group. Our mandate is to promote cross-border investment in
developing countries by providing guarantees (political risk insurance and credit
enhancement) to investors and lenders.
Our guarantees protect investments against noncommercial risks and can help
investors obtain access to funding sources with improved financial terms and
conditions. The agency derives its unique strength from the World Bank Group
and from its structure as an international organization whose shareholders
include most countries of the world. This enables us to provide an umbrella of
deterrence against government actions that could disrupt projects, and assist in
the resolution of disputes between investors and governments. We also add value
through our ability to offer clients extensive knowledge of emerging markets and
of international best practice in environmental and social management.
MIGA´s Strategy
• A re-affirmed focus on the poorest through support for projects in
IDA countries
• A continuing emphasis on Fragile and Conflict-affected States,
where MIGA has opportunity to have impact where private PRI insurers
are unwilling to go, and
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• An expanded commitment to climate change mitigation and

adaptation, targeting 28% of new issuance related to climate change
mitigation or adaptation in 2020.
• International Centre for Settlement of Investment

Disputes (ICSID)
• ICSID is the world’s leading institution devoted to international
investment dispute settlement. It has extensive experience in this field,
having administered the majority of all international investment
cases. States have agreed on ICSID as a forum for investor-State dispute
settlement in most international investment treaties and in numerous
investment laws and contracts.
ICSID was established in 1966 by the Convention on the Settlement

of Investment Disputes between States and Nationals ofOther States
(the ICSID Convention). The ICSID Convention is a multilateral treaty
formulated by the Executive Directors of the World Bank to further the
Bank’s objective of promoting international investment. ICSID is an
independent, depoliticized and effective dispute-settlement institution. Its
availability to investors and States helps to promote international
investment by providing confidence in the dispute resolution process. It is
also available for state-state disputes under investment treaties and free
trade agreements, and as an administrative registry.
ICSID provides for settlement of disputes by conciliation,

arbitration or fact-finding. The ICSID process is designed to take
account of the special characteristics of international investment disputes
and the parties involved, maintaining a careful balance between the
interests of investors and host States. Each case is considered by an
independent Conciliation Commission or Arbitral Tribunal, after hearing
evidence and legal arguments from the parties. A dedicated ICSID case
team is assigned to each case and provides expert assistance throughout
the process. More than 600 such cases have been administered by ICSID
to date.
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INTERNATIONAL MONETARY FUND ( IMF )
The International Monetary Fund fosters economic growth and employment by

providing temporary financial assistance to countries to help ease balance of
payments adjustment and technical assistance. The IMF currently has $28
billion in outstanding loans to 74 nations.
The International Monetary Fund (IMF) is an organization of 189 countries,
working to foster global monetary cooperation, secure financial stability,
facilitate international trade, promote high employment and sustainable
economic growth, and reduce poverty around the world.
HISTORY
Created in 1945, the IMF is governed by and accountable to the 189 countries that
make up its near-global membership.
Why the IMF was created and how it works
The IMF, also known as the Fund, was conceived at a UN conference in Bretton
Woods, New Hampshire, United States, in July 1944. The 44 countries at that
conference sought to build a framework for economic cooperation to avoid a
repetition of the competitive devaluations that had contributed to the Great
Depression of the 1930s.
The IMF has played a part in shaping the global economy since the end of World
War II.
Cooperation and Reconstruction (1944–71)
As the Second World War ends, the job of rebuilding national economies begins.
The IMF is charged with overseeing the international monetary system to ensure
exchange rate stability and encouraging members to eliminate exchange
restrictions that hinder trade.
The End of the Bretton Woods System (1972–81)
After the system of fixed exchange rates collapses in 1971, countries are free to
choose their exchange arrangement. Oil shocks occur in 1973–74 and 1979, and
the IMF steps in to help countries deal with the consequences.
Debt and Painful Reforms (1982–89)
The oil shocks lead to an international debt crisis, and the IMF assists in
coordinating the global response.
Societal Change for Eastern Europe and Asian Upheaval (1990–2004)
The IMF plays a central role in helping the countries of the former Soviet bloc
transition from central planning to market-driven economies.
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Globalization and the Crisis (2005 - present)

The implications of the continued rise of capital flows for economic policy and the
stability of the international financial system are still not entirely clear. The
current credit crisis and the food and oil price shock are clear signs that new
challenges for the IMF are waiting just around the corner.
GOALS
The IMF's primary purpose is to ensure the stability of the international
monetary system—the system of exchange rates and international payments that
enables countries (and their citizens) to transact with each other. The Fund's
mandate was updated in 2012 to include all macroeconomic and financial sector
issues that bear on global stability.
The IMF’s fundamental mission is to ensure the stability of the international
monetary system. It does so in three ways: keeping track of the global economy
and the economies of member countries; lending to countries with balance of
payments difficulties; and giving practical help to members.
Economic Surveillance
The IMF oversees the international monetary system and monitors the economic
and financial policies of its 189 member countries. As part of this process, which
takes place both at the global level and in individual countries, the IMF highlights
possible risks to stability and advises on needed policy adjustments.
Why is IMF monitoring important?
Vigilant monitoring by the IMF is essential to identifying stability and growth
risks that may require remedial policy adjustments. Moreover, international
cooperation on these efforts is critical in today’s globally integrated economy, in
which the problems or policies of one country can affect many others. IMF
membership, which includes all but a handful of the world’s nations, can facilitate
this cooperation. IMF monitoring includes both bilateral surveillance, focused on
individual member countries, and multilateral surveillance, or oversight of the
global economy.
Consulting with member states

IMF monitoring typically involves annual visits to member countries. During
these visits IMF staff engage government and central bank officials in discussions
about risks to domestic and global stability. These discussions focus on exchange
rate, monetary, fiscal, and regulatory policies, in addition to macro-critical
structural reforms. IMF staff also attempt to meet with other stakeholders,
including members of the legislature and representatives from the business
community, labor unions, and civil society, among other groups. Comprehensive
discussions with a broad array of groups leads to better evaluations of each
country’s economic policies and outlook.
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Upon completion of their evaluation IMF staff present a report to the Executive
Board for discussion. The Board’s views on the report are then transmitted to the
country’s authorities, concluding a process known as an Article IV consultation.
In recent years, surveillance has become more transparent and most member
countries now publish a press release summarizing the staff report and
accompanying analysis, as well as the views of the Board.
Global oversight
The IMF also monitors regional and global economic trends and analyzes the
impact that member country policies may have on neighboring countries and the
global economy. It issues periodic reports on these trends and
analysis. The World Economic Outlook provides detailed analysis of the global
economy and its growth prospects, addressing issues such as the macroeconomic
effects of global financial turmoil and the potential for global spillovers, especially
those that may result from the economic, fiscal, and monetary policies of large,
globally central economies such as the United States, China, and the euro area.
The Global Financial Stability Report assesses global capital markets and
financial imbalances and vulnerabilities that pose potential risks to financial
stability. The Fiscal Monitorupdates medium-term fiscal projections and
assesses developments in public finances. The IMF also publishes Regional
Economic Reports that provide detailed analysis of major regions of the world.
The IMF cooperates closely with other groups, including the Group of Twenty
industrialized and emerging market economies, and since 2009 has supported
the G20’s efforts to sustain international economic cooperation through
its mutual assessment process. The IMF analyzes member country policies to
determine how consistent they are with the goal of sustained and balanced global
growth. External Sector Reports analyze and assess the external positions of 29
of the world’s largest economies, plus the euro area. The analysis systematically
assesses current accounts, exchange rates, external balance sheet positions,
capital flows, and international reserves. Twice a year the IMF issues a Global
Policy Agenda that pulls together the key findings and policy advice from
multilateral reports and proposes a future policy agenda for the IMF and its
members.
Adapting surveillance to evolving global challenges
The IMF periodically reviews its surveillance and monitoring activities helping to
adapt to changes in the global economy. The 2014 Triennial Surveillance
Review(TSR) reinforced advances in surveillance since the global financial crisis.
Reflecting a heightened awareness of the implications of financial
interconnectedness across countries, the 2011 Review focused on multilateral
surveillance. This laid the foundation for the 2012 Integrated Surveillance
Decision, which focus on members’ domestic and balance-of-payments stability,
as well as systemic stability. In September 2012 the Board endorsed a Financial
Surveillance Strategy that proposes concrete steps to further strengthen IMF
monitoring activities. Together these reforms led to an overhaul of the
surveillance toolkit and update of the legal framework. The 2014 TSR supported
these reforms, recognized that surveillance should remain adaptable, and
emphasized selectivity.
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The recommendations following the 2014 Triennial Surveillance Review focused

on helping countries navigate the challenges following the global financial crisis.
A key priority was to fine-tune surveillance through better tailoring of advice on
the fiscal, monetary, external and structural policy mix, based on cross-country
experiences and supported by a more client-focused approach. Five operational
priorities were identified for 2014-19: risks and spillovers; macro-financial
surveillance; structural policy advice; cohesive and expert policy advice; and a
client-focused approach. The Managing Director’s Action Plan for Strengthening
Surveillance outlines concrete measures needed to advance all of these priorities.
Lending
The IMF provides loans to member countries experiencing actual or potential
balance of payments problems to help them rebuild their international reserves,
stabilize their currencies, continue paying for imports, and restore conditions for
strong economic growth, while correcting underlying problems.
Why do crises occur?
The causes of crises are varied and complex, and can be domestic, external, or
both.
• Domestic factors include inappropriate fiscal and monetary policies,
which can lead to large economic imbalances (such as large current
account and fiscal deficits and high levels of external and public debt); an
exchange rate fixed at an inappropriate level, which can erode
competitiveness and lead to persistent current account deficits and loss of
official reserves; and a weak financial system, which can create economic
booms and busts. Political instability and/or weak institutions can also
trigger crises.
• External factors include shocks ranging from natural disasters to large
swings in commodity prices. These are common causes of crises especially
for low-income countries, which have limited capacity to prepare for such
shocks and are dependent on a narrow range of export products. Also, in
an increasingly globalized economy, sudden changes in market sentiment
can result in capital flow volatility. Even countries with sound
fundamentals could be severely affected by the impact of economic crises
and policies in other countries.
Whether the cause is domestic or external in origin, crises can take many different
forms: balance of payment problems occur when a nation is unable to pay for
essential imports or service its external debt repayments; financial crises stem
from illiquid or insolvent financial institutions; and fiscal crises are caused by
excessive fiscal deficits and debt. Often, countries that come to the IMF face more
than one type of crisis as challenges in one sector spread throughout the economy.
Crises generally result in sharp slowdown in growth, higher unemployment,
lower incomes and greater uncertainty which cause a deep recession. In acute
crisis cases, defaults or restructuring of sovereign debt may become unavoidable.
How IMF lending helps
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IMF lending aims to give countries breathing room to implement adjustment

policies in an orderly manner, which will restore conditions for a stable economy
and sustainable growth. These policies will vary depending upon the country’s
circumstances. For instance, a country facing a sudden drop in the prices of key
exports may need financial assistance while implementing measures to
strengthen the economy and widen its export base. A country suffering from
severe capital outflows may need to address the problems that led to the loss of
investor confidence—perhaps interest rates are too low; the budget deficit and
debt stock are growing too fast; or the banking system is inefficient or
poorly regulated.
In the absence of IMF financing, the adjustment process for the country could be
more abrupt and difficult. For example, if investors are unwilling to provide new
financing, the country would have no choice but to adjust—often through a
painful compression of government spending, imports and economic activity.
IMF financing facilitates a more gradual and carefully considered adjustment. As
IMF lending is usually accompanied by a set of corrective policy actions, it also
provides a seal of approval that appropriate policies are taking place.
The IMF’s various lending instruments are tailored to different types of balance
of payments need as well as the specific circumstances of its diverse membership
(see table). Low-income countries may borrow on concessional terms through
facilities available under the Poverty Reduction and Growth Trust
(PRGT;see IMF Support for Low-Income Countries ), currently at zero interest
rates. Historically, for emerging and advanced market economies in crises, the
bulk of IMF assistance has been provided through Stand-By Arrangements
(SBAs) to address short-term or potential balance of payments problems.
The Standby Credit Facility (SCF)serves a similar purpose for low-income
countries. The Extended Fund Facility (EFF) and the corresponding Extended
Credit Facility (ECF) for low-income countries are the Fund’s main tools for
medium-term support to countries facing protracted balance of payments
problems. Their use has increased substantially in since the global financial
crisis, reflecting the structural nature of some members’ balance of payments
problems.
To help prevent or mitigate crises and boost market confidence during periods of
heightened risks, members with already strong policies can use the Flexible
Credit Line (FCL) or the Precautionary and Liquidity Line (PLL).
The Rapid Financing Instrument (RFI) and the corresponding Rapid Credit
Facility(RCF) for low-income countries provide rapid assistance to countries with
urgent balance of payments need, including from commodity price shocks,
natural disasters, and domestic fragilities.
IMF lending in action
The IMF provides financial support for balance of payments needs upon request
by its member countries. Unlike development banks, the IMF does not lend for
specific projects. Following such a request, an IMF staff team holds discussions
with the government to assess the economic and financial situation, and the size
of the country’s overall financing needs, and agree on the appropriate policy
response.
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Typically, a country’s government and the IMF must agree on a program of

economic policies before the IMF provides lending to the country. A
country’s commitments to undertake certain policy actions, known as policy
conditionality, are in most cases an integral part of IMF lending (see table). This
policy program underlying an arrangement is in most cases presented to the
Fund’s Executive Board in a “Letter of Intent” and further detailed in a
“Memorandum of Understanding”.
Progress is typically reviewed by monitoring the implementation of the policy
actions. However, for some arrangements, countries can use IMF resources with
no or limited conditionality as they have already established their commitment
to sound policies (FCL, PLL) or where they are designed for urgent and
immediate needs, for instance, because of the transitory and limited nature of the
shock or where policy implementation capacity is limited, including due to
fragilities (RFI, RCF). In general, a country’s return to economic and financial
health ensures that IMF funds are repaid so that they can be made available to
other member countries.
Once an understanding has been reached on policies and a financing package, a
recommendation is made to the IMF’s Executive Board to endorse the country’s
policy intentions and extend access to IMF resources. This process can be
expedited under the IMF’s Emergency Financing Mechanism.
Capacity Development
The IMF works with governments around the world to modernize their economic
policies and institutions, and train their people. This helps countries strengthen
their economy, improve growth and create jobs.
Strengthening the capacity of institutions such as central bank and finance
ministry results in more effective policies, leading to economic stability and
growth. That is why, for more than 50 years, the IMF has worked with these
institutions to provide technical assistance and training on economic issues,
helping countries raise public revenues, modernize banking systems, develop
strong legal frameworks, and enhance the reporting of macroeconomic and
financial data.
The IMF’s CD support is delivered to countries through short-term staff missions
from IMF headquarters (Washington, DC), long-term in-country placements of
resident advisors, a network of regional CD centers, and via online learning. This
effort is supported by bilateral and multilateral partners that presently finance
about one half of all IMF CD efforts, including through their support of regional
CD centers, thematic funds focused on developmental priorities, and bilateral
projects. The IMF Executive Board reviews and amends the CD strategy
periodically to improve its impact and effectiveness. The next review is currently
underway.
The IMF’s CD efforts are demand driven, i.e., initiated upon the request of
member countries. Thus far, the IMF has provided capacity development support
to all 189 member countries in line with the priorities identified by them. In FY
2017 (April 2016 – May 2017), low-income developing countries received about
29
half of all IMF technical advice. Emerging market and middle-income economies
received just over half of IMF policy-oriented training
The IMF’s capacity development efforts focus on:
Fiscal Policy : Helping governments better mobilize revenues and effectively
manage expenditure, via tax and customs policies, budget formulation, public
financial management, domestic and foreign debt, and social safety nets. This
enables governments to maintain fiscal sustainability, enhance infrastructure
such as schools, roads and hospitals, improve social safety nets, and attract
greater investments.
Monetary and Financial Sector Policies : Working with central banks to
modernize their monetary and exchange rate frameworks and policies – and with
financial sector regulators and supervisors to strengthen financial systems and
banking supervision. This helps improve macroeconomic and financial stability
in the country, fueling domestic growth and international trade.
Legal Frameworks : Aligning legal and governance frameworks to international
standards so countries can develop sound fiscal and financial reforms, fight
corruption and combat money laundering and terrorism financing.
Statistics : Helping countries compile, manage and report macroeconomic and
financial data. This provides more accurate understanding of their economy and
helps formulate informed policies.
Integrated with its advisory services is a broad array of training courses on
macro-financial linkages, monetary and fiscal policy, balance of payment issues,
financial markets and institutions, and statistical and legal frameworks. The
training curriculum and course offerings reflect changing needs of member
countries and include hands-on, active learning techniques. They are advertised
a year ahead in IMF’s online and published catalog.
Training is administered both in-person and online . The IMF has significantly
scaled up online learning as a vehicle to deliver training to government
officials.Online courses are also being made freely available to the public through
massive open online courses (MOOCs). More than 12,600 government officials
(and almost 11,000 members of the public from 192 countries) have successfully
completed an online course since the launch of the program in late 2013.
The IMF’s capacity development work is increasingly helping
countries tackle their developmental priorities. This includes:
Reducing Inequality : The IMF trains policymakers to implement inclusive
policies such as expenditure and subsidy reform, progressive taxation and
financial inclusion. It also provides analytical, operational and monitoring tools
countries need to tackle inequality.
Gender Equality : The IMF compiles gender-specific data on financial access to
enable countries to better understand the impact of their economic policies on
women. It is also helping boost female labor market participation, providing
training on gender budgeting, publicizing best practices, and empowering female
government officials through training.
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Climate Action : The IMF works with countries on environmental tax reform and
efficient energy pricing to minimize the effects of climate change. It also helps
create robust frameworks and public financial management plans to prepare
countries for natural disasters and climate-related shocks.
Capacity development is integrated with IMF surveillance and
lending.
Strengthening economic policies through CD helps increase the understanding of
IMF policy advice in the country, keeps institutions up-to-date on global
innovations and risks, and helps address crisis-related challenges and spillovers.
Similarly, the IMF’s surveillance and lending work may identify areas in which
CD activities can have the biggest impact in a country.
Robust monitoring and evaluation systems ensure that IMF’s capacity
development work has a strong focus on results.
The IMF is strengthening its results-based management framework to facilitate
systematic planning and improved monitoring of CD activities. This is being
complemented by a new common evaluation framework to improve the ability to
measure and compare the performance of different kinds of technical assistance
and training across the IMF.
Evaluation will help determine, for example, the degree to which technical
assistance has improved macroeconomic stability, public finance management
systems, the quality of economic statistics, and financial governance. Similarly, it
will help determine whether training has improved job performance of
government officials, and improved their ability to analyze economic
developments and assess policy effectiveness
Organization & Finances

The IMF has a management team and 17 departments that carry out its country,
policy, analytical, and technical work. One department is charged with managing
the IMF’s resources. This section also explains where the IMF gets its resources
and how they are used.
Management
The IMF has a Managing Director, who is head of the staff and Chairperson of the
Executive Board. The Managing Director is appointed by the Executive Board for
a renewable term of five years and is assisted by a First Deputy Managing Director
and three Deputy Managing Directors.
Staff
The IMF’s employees come from all over the world; they are responsible to the
IMF and not to the authorities of the countries of which they are citizens. The
IMF staff is organized mainly into area; functional; and information, liaison, and
support responsibilities.
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IMF Resources
Most resources for IMF loans are provided by member countries, primarily
through their payment of quotas.
Quotas
Quota subscriptions are a central component of the IMF’s financial resources.
Each member country of the IMF is assigned a quota, based broadly on its relative
position in the world economy.
Special Drawing Rights (SDR)
The SDR is an international reserve asset, created by the IMF in 1969 to
supplement its member countries’ official reserves.
The role of the SDR
The SDR was created as a supplementary international reserve asset in the
context of the Bretton Woods fixed exchange rate system. The collapse of Bretton
Woods system in 1973 and the shift of major currencies to floating exchange rate
regimes lessened the reliance on the SDR as a global reserve asset. Nonetheless,
SDR allocations can play a role in providing liquidity and supplementing member
countries’ official reserves, as was the case with the 2009 allocations totaling SDR
182.6 billion to IMF members amid the global financial crisis.
The SDR serves as the unit of account of the IMF and some other international
organizations.
The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential
claim on the freely usable currencies of IMF members. SDRs can be exchanged
for these currencies.
A basket of currencies determines the value of the SDR
SDR VALUE
The SDR value in terms of the U.S. dollar is determined daily based on the spot
exchange rates observed at around noon London time, and posted on the IMF
website.
The SDR was initially defined as equivalent to 0.888671 grams of fine gold—
which, at the time, was also equivalent to one U.S. dollar. After the collapse of the
Bretton Woods system, the SDR was redefined as a basket of currencies.
The SDR basket is reviewed every five years, or earlier if warranted, to ensure that
the SDR reflects the relative importance of currencies in the world’s trading and
financial systems. The reviews cover the key elements of the SDR method of
valuation, including criteria and indicators used in selecting SDR basket
currencies and the initial currency weights used in determining the amounts
(number of units) of each currency in the SDR basket. These currency amounts
remain fixed over the five-year SDR valuation period but the actual weights of
currencies in the basket fluctuate as cross-exchange rates among the basket
currencies move. The value of the SDR is determined daily based on market
exchange rates. The reviews are also used to assess the appropriateness of the
financial instruments comprising the SDR interest rate (SDRi) basket.
32
Fixed
Number
of Units of
Weights Currency
determined for a 5-
Currency
in the 2015 year
Review period
Starting
Oct 1,
2016
U.S. Dollar 41.73 0.58252
Euro 30.93 0.38671
Chinese Yuan 10.92 1.0174
Japanese Yen 8.33 11.900
Pound Sterling 8.09 0.085946
During the last review concluded in November 2015, the Board decided that the
Chinese renminbi (RMB) met the criteria for inclusion in the SDR basket.
Following this decision, the Chinese RMB joined the US dollar, euro, Japanese
yen, and British pound sterling in the SDR basket, effective October 1, 2016.
Gold
Gold remains an important asset in the reserve holdings of several countries, and
the IMF is still one of the world’s largest official holders of gold.
Borrowing Arrangements
While quota subscriptions of member countries are the IMF's main source of
financing, the Fund can supplement its quota resources through borrowing if it
believes that they might fall short of members' needs.
GOVERNANCE
How the IMF Makes Decisions

The IMF has evolved along with the global economy throughout its 70-year
history, allowing the organization to retain a central role within the international
financial architecture. Unlike the General Assembly of the United Nations, where
each country has one vote, decision making at the IMF was designed to reflect the
relative positions of its member countries in the global economy. The IMF
33
continues to undertake reforms to ensure that its governance structure

adequately reflects fundamental changes taking place in the world economy,
including the larger role that emerging market and developing economies now
play in the global economy.
The diagram below provides a stylized view of the IMF's current governance
structure.
Board of Governors
The Board of Governors is the highest decision-making body of the IMF. It
consists of one governor and one alternate governor for each member country.
The governor is appointed by the member country and is usually the minister of
finance or the head of the central bank.
34
While the Board of Governors has delegated most of its powers to the IMF’s
Executive Board, it retains the right to, among other things,
approve quotaincreases, special drawing right (SDR) allocations, the admittance
of new members, compulsory withdrawal of members, and amendments to
the Articles of Agreement and By-Laws.
The Board of Governors also elects Executive Directors and is the ultimate arbiter
on issues related to the interpretation of the IMF’s Articles of Agreement. Voting
by the Board of Governors may take place either by holding a meeting or remotely
(through the use of courier services, electronic mail, facsimile, or the IMF’s secure
online voting system). Decisions are made by a majority of votes cast, unless
otherwise specified in the Articles of Agreement.
The Boards of Governors of the IMF and the World Bank Group normally meet
once a year, during the IMF–World Bank Annual Meetings, to discuss the work
of their respective institutions. The Annual Meetings, which take place in
September or October, have customarily been held in Washington for two
consecutive years and in an alternate member country in the third year.
Ministerial Committees
The Board of Governors is advised by two ministerial committees,
the International Monetary and Financial Committee (IMFC) and
the Development Committee.
The IMFC has 24 members, drawn from the pool of 189 governors, and
represents all member countries. Its structure mirrors that of the Executive Board
and its 24 constituencies. The IMFC meets twice a year, during the IMF–World
Bank Spring and Annual Meetings, to discuss the management of the
international monetary and financial system, proposals by the Executive Board
to amend the Articles of Agreement, or any other matters of common concern
affecting the global economy. The Committee issues a communiqué summarizing
its views following each meeting, providing guidance for the IMF’s work program.
The IMFC operates by consensus and does not conduct formal votes.
The Development Committee is a joint committee, tasked with advising the
Boards of Governors of the IMF and the World Bank on issues related to
economic development in emerging market and developing countries. The
committee has 25 members (usually ministers of finance or development). It
represents the full membership of the IMF and the World Bank and mainly serves
as a forum for building intergovernmental consensus on critical development
issues.
The Executive Board

The IMF’s 24-member Executive Board conducts the daily business of the IMF
and exercises the powers delegated to it by the Board of Governors, as well as
those powers conferred on it by the Articles of Agreement. With the entry into
force of the Board Reform Amendment on January 26, 2016, the all-elected
Executive Board has been in place since the subsequent election took effect on
November 1, 2016. Previously, the member countries holding the five largest
35
quotas were each entitled to appoint an Executive Director, while 19 were elected
by the remaining member countries.
The Board discusses all aspects of the Fund’s work, from the IMF staff's annual
health checks of member countries' economies to policy issues relevant to the
global economy. The Board normally makes decisions based on consensus, but
sometimes formal votes are taken. The votes of each member equal the sum of its
basic votes (equally distributed among all members) and quota-based votes.
Therefore, a member’s quota determines its voting power. Following most formal
meetings, the Board summarizes its views in a document known as a
Summing Up. Informal meetings may also be held to discuss complex policy
issues at a preliminary stage.
IMF Management
The IMF’s Managing Director is both chairman of the IMF’s Executive Board and
head of IMF staff. The Managing Director is appointed by the Executive Board for
a renewable term of five years and is assisted by a First Deputy Managing Director
and three Deputy Managing Directors. The IMF’s Governors and Executive
Directors may nominate nationals of any of the Fund’s member countries for the
position of Managing Director. Although the Executive Board may select a
Managing Director by a majority of votes cast, the Board has in the past made
such appointments by consensus. For the 2011 selection, the Executive Board
adopted a procedure that allowed the selection of the next Managing Director to
take place in an open, merit-based, and transparent manner. The Executive
Board adopted the same procedure to govern the 2016 selection.
Governance reform
The Fund’s governance structure must keep pace with the rapidly evolving world
economy to ensure it remains an effective and representative institution of all its
189 member countries. To secure this objective, in December 2010 the Board of
Governors of the IMF completed the 14th General Review of Quotas, which
involved a package of far-reaching reforms of the Fund's quotas and governance.
The conditions for the effectiveness of these reforms were met on January 26,
2016. Among others, the reform included:
• A quota increase and shift in shares. The 14th General Review of Quotas
resulted in an unprecedented doubling of quotas and a major realignment
of quota and voting shares to emerging and developing countries (with a
more than 6 percent quota shift to dynamic emerging market and
developing countries, and under-represented countries).
• Protecting the quota and voting share of the poorest member
countries.This group of countries was defined as those eligible for the low-
income Poverty Reduction and Growth Trust (PRGT) and whose per capita
income fell below $1,135 in 2008 (the threshold set by the International
Development Association) or twice that amount for small countries.
• Quota formula and next review. A comprehensive review of the current
quota formula was completed in January 2013, when the Executive Board
36
submitted its report to the Board of Governors. Work on a new quota

formula has started in the context of the 15th General Review of Quotas.1
• A new composition and more representative Board. The 2010 reforms
also included an amendment to the Articles of Agreement established an
all-elected Executive Board, which facilitates a move to a more
representative Executive Board (as noted above, the first all-elected Board
has been in place since November 2016). The European members are
committed to reducing by two the number of Board members representing
advanced European countries in favor of emerging market and developing
countries, and have made significant progress.
The implementation of the 2010 quota and governance reforms are major
achievements that reinforced the credibility, effectiveness, and legitimacy of the
IMF and constituted a major step toward better reflecting the increasing role of
dynamic emerging market and developing countries in the institution’s
governance structure, and significantly strengthened the Fund’s permanent
resources.
The 15th General Quota Review provides an opportunity to assess the appropriate
size and composition of the Fund’s resources and to continue the process of
governance reforms. On December 5, 2016, the Board of Governors adopted a
Resolution calling on the Executive Board to work expeditiously on the
15thReview in line with existing Executive Board understandings and the
guidance provided by the IMFC, and with the aim of completing the 15 th Review
by the 2019 Spring Meetings and no later than the 2019 Annual Meetings.
Good governance
The Fund actively promotes good governance within its own organization. It has
adopted a number of integrity institutions, including a Code of Conduct for
Staff—bolstered by financial certification and disclosure requirements, and
sanctions—a similar Code of Conduct for Members of the Executive Board, and
an Integrity Hotline offering protection to “whistleblowers.” The IMF Ethics
Office advises the institution and its staff on ethics issues, inquires into alleged
violations of rules and regulations, and oversees the ethics and integrity training
program for all staff members. Accountability arrangements have also been put
in place to ensure effective implementation of the strategic priorities of the
institution.
37
Related Organization in the UN System
WORLD TRADE ORGANIZATION ( WTO )

https://www.wto.org/english/thewto_e/thewto_e.htm
The World Trade Organization (WTO) is the only global international

organization dealing with the rules of trade between nations. At its heart are the
WTO agreements, negotiated and signed by the bulk of the world’s trading
nations and ratified in their parliaments. The goal is to ensure that trade flows as
smoothly, predictably and freely as possible.
What is the WTO?
The WTO has many roles: it operates a global system of trade rules, it acts
as a forum for negotiating trade agreements, it settles trade disputes
between its members and it supports the needs of developing countries.
he WTO was born out of negotiations, and everything the WTO does is the
result of negotiations. The bulk of the WTO’s current work comes from the
1986–94 negotiations called the Uruguay Round and earlier negotiations
under the General Agreement on Tariffs and Trade (GATT). The WTO is
currently the host to new negotiations, under the ‘Doha Development
Agenda’ launched in 2001.
Where countries have faced trade barriers and wanted them lowered, the
negotiations have helped to open markets for trade. But the WTO is not
just about opening markets, and in some circumstances its rules support
maintaining trade barriers — for example, to protect consumers or prevent
the spread of disease.
At its heart are the WTO agreements, negotiated and signed by the bulk of
the world’s trading nations. These documents provide the legal ground
rules for international commerce. They are essentially contracts, binding
governments to keep their trade policies within agreed limits. Although
negotiated and signed by governments, the goal is to help producers of
goods and services, exporters, and importers conduct their business, while
allowing governments to meet social and environmental objectives.
The system’s overriding purpose is to help trade flow as freely as possible
— so long as there are no undesirable side effects — because this is
important for economic development and well-being. That partly means
removing obstacles. It also means ensuring that individuals, companies
and governments know what the trade rules are around the world, and
giving them the confidence that there will be no sudden changes of policy.
In other words, the rules have to be ‘transparent’ and predictable.
38
Trade relations often involve conflicting interests. Agreements, including

those painstakingly negotiated in the WTO system, often need
interpreting. The most harmonious way to settle these differences is
through some neutral procedure based on an agreed legal foundation. That
is the purpose behind the dispute settlement process written into the WTO
agreements.
• Overview
The primary purpose of the WTO is to open trade for the benefit of all.
• The WTO provides a forum for negotiating agreements aimed at reducing obstacles
to international trade and ensuring a level playing field for all, thus contributing to
economic growth and development. The WTO also provides a legal and institutional
framework for the implementation and monitoring of these agreements, as well as
for settling disputes arising from their interpretation and application. The current
body of trade agreements comprising the WTO consists of 16 different multilateral
agreements (to which all WTO members are parties) and two different plurilateral
agreements (to which only some WTO members are parties).
• Over the past 60 years, the WTO, which was established in 1995, and its predeces-
sor organization the GATT have helped to create a strong and prosperous interna-
tional trading system, thereby contributing to unprecedented global economic
growth. The WTO currently has 164 members, of which 117 are developing
countries or separate customs territories. WTO activities are supported by a Secre-
tariat of some 700 staff, led by the WTO Director-General. The Secretariat is located
in Geneva, Switzerland, and has an annual budget of approximately CHF 200 mi-
llion ($180 million, €130 million). The three official languages of the WTO are En-
glish, French and Spanish.
• Decisions in the WTO are generally taken by consensus of the entire membership.
The highest institutional body is the Ministerial Conference, which meets roughly
every two years. A General Council conducts the organization's business in the in-
tervals between Ministerial Conferences. Both of these bodies comprise all mem-
bers. Specialised subsidiary bodies (Councils, Committees, Sub-committees), also
comprising all members, administer and monitor the implementation by members
of the various WTO agreements.
• More specifically, the WTO's main activities are:
• — negotiating the reduction or elimination of obstacles to trade (import tariffs, ot-
her barriers to trade) and agreeing on rules governing the conduct of international
trade (e.g. antidumping, subsidies, product standards, etc.)
— administering and monitoring the application of the WTO's agreed rules for trade
in goods, trade in services, and trade-related intellectual property rights
— monitoring and reviewing the trade policies of our members, as well as ensuring
transparency of regional and bilateral trade agreements
— settling disputes among our members regarding the interpretation and applica-
tion of the agreements
— building capacity of developing country government officials in international
trade matters
— assisting the process of accession of some 30 countries who are not yet members
of the organization
— conducting economic research and collecting and disseminating trade data in
support of the WTO's other main activities
— explaining to and educating the public about the WTO, its mission and its activi-
ties.
39
• The WTO's founding and guiding principles remain the pursuit of open borders, the
guarantee of most-favoured-nation principle and non-discriminatory treatment by
and among members, and a commitment to transparency in the conduct of its acti-
vities. The opening of national markets to international trade, with justifiable ex-
ceptions or with adequate flexibilities, will encourage and contribute to sustainable
development, raise people's welfare, reduce poverty, and foster peace and stability.
At the same time, such market opening must be accompanied by sound domestic
and international policies that contribute to economic growth and development ac-
cording to each member's needs and aspirations.
Decision-making
• Organization chart
The WTO's top decision-making body is the Ministerial Conference. Below
this is the General Council and various other councils and committees.
Current WTO chairpersons
• Ministerial conferences
Ministerial conferences usually take place every two years.
• General Council
The General Council is the top day-to-day decision-making body. It meets
a number of times a year in Geneva.
Membership
• Members and observers
The WTO has 164 members representing 98 per cent of world trade. Over
20 countries are seeking to join the WTO.
• Accessions
To join the WTO, a government has to bring its economic and trade
policies in line with WTO rules and negotiate its terms of entry with the
WTO membership.
WTO Secretariat
The WTO has approximately 650 staff on its regular budget.
Budget
The WTO derives most of the income for its annual budget from contributions by
its members. These contributions are based on a formula that takes into account
each member's share of international trade.
40
Director-General
WTO Director-General: Ngozi Okonjo-Iweala. Ngozi Okonjo-Iweala is the
seventh Director-General of the WTO. She took office on 1 March 2021, becom-
ing the first woman and the first African to serve as Director-General. Her term
of office will expire on 31 August 2025.
Deputy Directors-General
There are four Deputy Directors-General.
In brief, the World Trade Organization (WTO) is the only international
organization dealing with the global rules of trade. Its main function is to ensure
that trade flows as smoothly, predictably and freely as possible.
“By lowering trade barriers through negotiations among member governments,
the WTO’s system also breaks down other barriers between peoples and trading
economies.
Global trade rules

Global rules of trade provide assurance and stability. Consumers and producers
know they can enjoy secure supplies and greater choice of the finished products,
components, raw materials and services they use. Producers and exporters know
foreign markets will remain open to them.
This leads to a more prosperous, peaceful and accountable economic world.
Decisions in the WTO are typically taken by consensus among all members and
they are ratified by members’ parliaments. Trade frictions are channelled into the
WTO’s dispute settlement process, where the focus is on interpreting agreements
and commitments and how to ensure that members’ trade policies conform with
them. That way, the risk of disputes spilling over into political or military conflict
is reduced.
By lowering trade barriers through negotiations among member governments,
the WTO’s system also breaks down other barriers between peoples and trading
economies.
41
At the heart of the system – known as the multilateral trading system – are the
WTO’s agreements, negotiated and signed by a large majority of the world’s
trading economies, and ratified in their parliaments.
These agreements are the legal foundations for global trade. Essentially, they are
contracts, guaranteeing WTO members important trade rights. They also bind
governments to keep their trade policies transparent and predictable which is to
everybody’s benefit.
The agreements provide a stable and transparent framework to help producers of
goods and services, exporters and importers conduct their business.
The goal is to improve the welfare of the peoples of the WTO’s members.
“The past 70 years have seen an exceptional growth in world trade. Merchandise
exports have grown on average by 6% annually.
Trade negotiations
The World Trade Organization came into being in 1995. One of the
youngest of the international organizations, the WTO is the successor to the
General Agreement on Tariffs and Trade (GATT) established in the wake of the
Second World War.
So while the WTO is relatively young, the multilateral trading system that was
originally set up under the GATT is over 70 years old.
The past 70 years have seen an exceptional growth in world trade. Merchandise
exports have grown on average by 6% annually. This growth in trade has been a
powerful engine for overall economic expansion and on average trade has grown
by 1.5 times more than the global economy each year. Total exports in 2016 were
250 times the level of 1948. The GATT and the WTO have helped to create a
strong and prosperous trading system contributing to unprecedented growth.
The system was developed through a series of trade negotiations, or rounds, held
under the GATT. The first rounds dealt mainly with tariff reductions but later
negotiations included other areas such as anti-dumping and non-tariff measures.
The 1986-94 round – the Uruguay Round – led to the WTO’s creation.
The negotiations did not end there. In 1997, an agreement was reached on
telecommunications services, with 69 governments agreeing to wide-ranging
liberalization measures that went beyond those agreed in the Uruguay Round.
In the same year, 40 governments successfully concluded negotiations for tariff-
free trade in information technology products, and 70 members concluded a
financial services deal covering more than 95% of trade in banking, insurance,
securities and financial information.
In 2000, new talks started on agriculture and services. These were incorporated
into a broader work programme, the Doha Development Agenda, launched at the
fourth WTO Ministerial Conference in Doha, Qatar, in November 2001.
42
The new work programme included negotiations and other work on non-
agricultural tariffs, trade and the environment, WTO rules on anti-dumping and
subsidies, trade facilitation, transparency in government procurement,
intellectual property and a range of issues raised by developing economies as
difficulties they face in implementing WTO agreements.
Negotiations on these and other topics have resulted in major updates to the WTO
rulebook in recent years. A revised Government Procurement Agreement –
adopted at the WTO’s 8th Ministerial Conference in 2011 – expanded the
coverage of the original agreement by an estimated US$ 100 billion a year.
At the 9th Ministerial Conference in Bali in 2013, WTO members struck the
Agreement on Trade Facilitation, which aims to reduce border delays by slashing
red tape.
When fully implemented, this Agreement – the first multilateral accord reached
at the WTO – will cut trade costs by more than 14% and will lift global exports by
as much as US$ 1 trillion per year.
The expansion of the Information Technology Agreement – concluded at the 10th
Ministerial Conference in Nairobi in 2015 – eliminated tariffs on an additional
200 IT products valued at over US$ 1.3 trillion per year. Another outcome of the
Conference was a decision to abolish agricultural export subsidies, fulfilling one
of the key targets of the UN Sustainable Development Goal on “Zero hunger”.
Most recently, an amendment to the WTO’s Intellectual Property Agreement
entered into force in 2017, easing poor economies’ access to affordable medicines.
The same year saw the Trade Facilitation Agreement enter into force.
Each member receives guarantees that its exports will be treated fairly and
consistently in other members’ markets.
WTO agreements
How can you ensure that trade is as fair as possible, and as open as is practical?
By negotiating rules and abiding by them.
The WTO’s rules – the agreements – are the result of negotiations between the
members. The current set is largely the outcome of the 1986- 94 Uruguay Round
negotiations, which included a major revision of the original General
Agreement on Tariffs and Trade (GATT).
The Uruguay Round created new rules for dealing with trade in services and
intellectual property and new procedures for dispute settlement. The complete
set runs to some 30,000 pages consisting of about 30 agreements and separate
commitments (called schedules) made by individual members in specific areas,
such as lower tariffs and services market-opening.
Through these agreements, WTO members operate a non- discriminatory trading
system that spells out their rights and their obligations. Each member receives
guarantees that its exports will be treated fairly and consistently in other
members’ markets. Each promises to do the same for imports into its own market.
The system also gives developing economies some flexibility in implementing
their commitments.
43
Goods
It all began with trade in goods. From 1947 to 1994, the GATT was the forum
for negotiating lower tariffs and other trade barriers; the text of the
GATT spelt out important rules, particularly non- discrimination. Since 1995, the
Marrakesh Agreement Establishing the WTO and its annexes (including the
updated GATT) has become the WTO’s umbrella agreement. It has annexes
dealing with specific sectors relating to goods, such as agriculture, and with
specific issues such as product standards, subsidies and actions taken against
dumping. A recent significant addition was the Trade Facilitation Agreement,
which entered into force in 2017.
Services
Banks, insurance firms, telecommunications companies, tour operators, hotel
chains and transport companies looking to do business abroad enjoy the same
principles of more open trade that originally only applied to trade in goods. These
principles appear in the General Agreement on Trade in Services (GATS).
WTO members have also made individual commitments under the GATS stating
which of their service sectors they are willing to open to foreign competition, and
how open those markets are.
Intellectual property
The WTO’s Intellectual Property Agreement contains rules for trade in
ideas and creativity. The rules state how copyrights, patents, trademarks,
geographical names used to identify products, industrial designs and undisclosed
information such as trade secrets – “intellectual property” – should be protected
when trade is involved.
Dispute settlement
The WTO’s procedure for resolving trade conflicts under the Dispute Settlement
Understanding is vital for enforcing the rules and therefore for ensuring that
trade flows smoothly. Governments bring disputes to the WTO if they think their
rights under the WTO agreements are being infringed. Judgements by specially
appointed independent experts are based on interpretations of the agreements
and individual members' commitments. The system encourages members to
settle their differences through consultation with each other. If this proves to be
unsuccessful, they can follow a stage- by-stage procedure that includes the
possibility of a ruling by a panel of experts and the chance to appeal the ruling on
legal grounds. Confidence in the system is borne out by the number of cases
brought to the WTO – more than 500 cases since the WTO was established
compared with the 300 disputes dealt with during the entire life of the GATT
(1947-94).
Trade monitoring
The WTO's Trade Policy Review Mechanism is designed to improve transparency,
to create a greater understanding of the trade policies adopted by WTO members
and to assess their impact. Many members see the reviews as constructive
feedback on their policies. All WTO members must undergo periodic scrutiny,
each review containing reports by the member concerned and the WTO
44
Secretariat. In addition, the WTO undertakes regular monitoring of global trade

measures. Initially launched in the wake of the financial crisis of 2008, this global
trade monitoring exercise has become a regular function of the WTO, with the
aim of highlighting WTO members' implementation of both trade- facilitating
and trade-restricting measures.
45

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International Organizations. Prof. Dr.Dr. José Escribano. 2023.

9. Specialized agencies of the United

1. The UN specialized agencies are autonomous organizations working

B ) THE ROLE OF SPECIALIZED AGENCIES IN THE

WORLD HEALTH ORGANIZATION (WHO )

Constitution of WHO: principles

• The extension to all peoples of the benefits of medical, psychological and

UNESCO is the United Nations Educational, Scientific and Cultural Organization.

Political and economic arrangements of governments are not enough to secure

UNESCO's duty remains to reaffirm the humanist missions of education, science

KEY FACTS : A SELECTION OF UNESCO'S SUCCESS

UNESCO preserves 1073 World Heritage sites in 167 countries

UNESCO coordinates Tsunami early warning systems all over the

UNESCO leads global efforts to reach quality education for all

UNESCO stands up for freedom of expression and condemns the

UNESCO published General Histories of Humanity, Africa, Asia,

193 Member States, 11 Associate Members, 11 000 Associated

177 State Parties to the Intangible Heritage

The General Conference

The General Conference consists of the representatives of UNESCO's Member States. It

The Executive Board

INTERNATIONAL LABOUR ORGANIZATION ( ILO )

Four strategic objectives at the heart of the Decent Work agenda

ILO and Goal 8

The 2030 Agenda embraces the three dimensions of sustainability – economic,

Decent work – Key to sustainable development

The importance of decent work in achieving sustainable development is

How the ILO works

Tripartism and social dialogue

The ILO encourages this tripartism within its constituents - employers ,

• Regional meetings of the ILO member States are held periodically to

The ILO has developed various means of supervising the application of

Development cooperation builds bridges between the ILO’s standard-setting role

With over 50 years of experience in development cooperation on all continents

C ) The role of specialized agencies in the economic

WORLD BANK GROUP

Established in 1944, the World Bank Group is headquartered in Washington,

Financial Products and Services

• International Bank for Reconstruction and

The International Bank for Reconstruction and Development (IBRD) is a global

A Partner to Middle-Income Countries

How IBRD Is Financed

• International Development Association (IDA)

How Does IDA Work?

• International Finance Corporation (IFC)

A strong and engaged private sector is indispensable to ending extreme poverty

IFC helps companies:

IFC helps governments:

How IFC works with companies

How IFC works with financial institutions and funds

How IFC works with governments

• Multilateral Investment Guarantee Agency (MIGA)

Bank’s Board of Governors began the process of creating a new investment

The Multilateral Investment Guarantee Agency (MIGA) is a member of the

• An expanded commitment to climate change mitigation and

• International Centre for Settlement of Investment

ICSID was established in 1966 by the Convention on the Settlement

ICSID provides for settlement of disputes by conciliation,

INTERNATIONAL MONETARY FUND ( IMF )

The International Monetary Fund fosters economic growth and employment by

Globalization and the Crisis (2005 - present)

Consulting with member states

The recommendations following the 2014 Triennial Surveillance Review focused