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Global Finanial Markets Prezi

Real One

Richard Bonito

on 19 October 2012

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Transcript of Global Finanial Markets Prezi

Functions Loans to war devastated countries.

Loans to underdeveloped countries.

Loans for agriculture, irrigation, power, transport, water supply, educations, health, etc

Promote further foreign investment

Providing technical, economic and monetary advice to member countries for specific projects World Markets Provides stability in world trade and a platform for litigation when disputes arise

Allows governments to be more willing to take on trade risk knowing they may be compensated for loss of trade

WTO rulings are adhered to in order to forgo sanctions Functions Members Functions Recommendations Changing Role How lending works Action During Financial Crisis Constraints Outlook Oversee,implement and administer WTO agreements

Provide a forum for negotiations

Dispute settlement mechanism

Collaborate with the World Bank and IMF to foster global growth USA vs. China 188 member countries
Voting power determined by contribution to fund.
7th largest industrialized countries hold 45% of vote Critisism Western dominance

Projects are usually contracted to western companies rather than local companies (not creating jobs)

Give out to most profitable contracts not to most needed Provide loans to help countries overcome economic difficulties

Provide research, forecasts and analysis on global,regional and individual economies and markets

Techincal assitance and training to help countries improve the managment of their economies. 1945 2012 1971 Oversee the fixed exchange rate arrangements between countries

Provide short-term capital to aid in balance of payment.

Promote a balance global financial system to help increase the standard of living for all of it's members. Examine member economies to identify policy and fiscal shortfalls.

Advise municiplalities on government types that lead to prosperity.

Their function became one of “surveillance” of the overall macroeconomic performance of its member countries. Loan is payed back Furnishing of statistics and "surveillance material" Country submits request for a loan Country becomes new member Quota is Determined weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent) If requirements aren't met, funds are withheld Creditors and IMF provides conditions for loan International Politics

Lack of clear accountability framework

"Group Think"

Ambiguity of roles of executives, board members and committee chairs

Inadequate economic "surveliance" and forecasting Gradual world economicgrowth
Asian region will grow at 6% as for the through 2013
Increased government reserves
Policy makers determine the success of the U.S and EU Doubled permanent resources

Increased quota subscription commitment

Streamlined conditions attatched to loans

Quadrupled concessional lending

Creation of FCL (Flexible Credit Line) Create an enviornment that encourages candor and considers dissenting views;

Modify incentives to “speak truth to power;”

Better integrate macroeconomic and financial sector

Overcome the silo mentality and insular culture

Deliver a clear, consistent message on the
global outlook and risks. Voting rights are established Surveillance Tech. Assistance and Training WTO, World Bank & IMF

By: Richard Bonito & Aaron Shapiro Promotes economic stability and global growth by encouraging countries to adopt sound economic and financial policies

Three semiannual publications, the World Economic Outlook, the Global Financial Stability Report, and the Fiscal Monitor. The IMF also publishes a series of regional economic outlooks.

Improve global understanding of spillovers and the assessment of emerging and potential risks; and strengthen IMF policy advice. What is the WTO? The WTO is an organization that overwatches international trade.

Deals with regulation of trade between participating countries by providing a framework for negotiations

Provides a dispute resolution process aimed at enforcing WTO rules, which are formed by its member governments The IMF provides technical assistance and training in four areas:

monetary and financial policies

fiscal policy and management

compilation, management, dissemination, and improvement of statistical data

economic and financial legislation. Principles of WTO Trading System Lending Non-discirmination


Binding and enforcing commitments


Safety Valves Provides member countries capital to correct balance of payments problems conditional to effective implementation of policies.

IMF has doubled loan access with concessional interest rates to poor countries.

Lending instruments provide flexible crisis prevention tools to members with sound fundamental fiscal policies and national institutions. Payable partially in SDR's( Special Drawing Rights) (Questions)
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