Globalization involves the interconnection of the world due to the significant increase in cultural exchange and trade. This results in many services and goods being produced. Globalization has been in existence for some centuries, but it has significantly hastened over the last fifty years. Effects of globalization include increased international trade, free movement of goods, services and capital, significant dependence on the economy of the globe and also having one company in more than two countries. For the developed countries, globalization tends to generate more wealth. These are some of the positive effects associated with this phenomenon. On the other hand, there are negative influences of globalization. For instance, globalization does not seem to reduce the gap that exists between the richest countries in the world and the poorest countries. Regardless of this, various institutions have a duty of enhancing the phenomenon of globalization in order to achieve maximum results. As such, institutions such as the World Bank, International Monetary Fund, and the World Trade Organizations have various roles in the acceleration of globalization.
One of the institutions in the United Nations is the World Bank (WB). This bank is geared towards elevating the standards of living in countries where it has member states. World Bank has 189-member countries. It is composed of two institutions namely the “International Development Association” and the “International Bank for Reconstruction”. The World Bank focuses on reducing poverty levels and the development of the economy in each of its member states. It does this by providing technical and monetary support which aid in the development and maintenance of projects including healthcare facilities, providing water that is clean, building schools, environmental protection, and electricity (Seabrooke & Wigan, 2014). WB receives funding from the issuance of bonds and contributors from member states, and it assists for an extended period. WB usually organizes meetings yearly. Issues of the member states in finance and international economics are presented by the World Bank during these annual meetings. The WB president often holds meetings with representatives from various countries to discuss major issues while the employees deal with policy issues.
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Another institution of the United Nations is the International Monetary Fund (IMF). Just like the World Bank, improving the standards of living in the countries that are members, is the primary role of IMF. However, IMF is only concerned with the macroeconomic issues (Wolf, 2014). In a bid to ensure that the member nations have an economy that is strong, the IMF provides support to the various developments, gives advice about policies and also enhances monetary cooperation worldwide. In situations where the finances are not enough, IMF assists in putting in place policies that fix payment problems, and it also issues loans. Quota distributors fund the IMF thus necessitating the IMF to issue short-term loans.
Numerous meetings are held between the World Bank and IMF to harmonize their activities and join efforts in areas requiring duties to be shared. IMF has a Board of Governors which runs the administrative affairs of the organization. These governors usually present the views of their countries about issues in finance and global economics in the meetings that are held yearly. This board is also responsible for setting the firm's goals. Also, the board is part of the committee dealing with development. The board members meet as a section of this committee and give proposals on monetary resources necessary to develop the economy in areas where people receive low-income and also about essential issues on development.
Regular meetings are held between the Director of IMF and the President of the World Bank. These meetings are aimed at issuing articles, statements and paying visits to member states together. The staffs of both the World Bank and IMF cooperate on issues about policies that are beneficial to both corporations. The IMF and WB usually carry out activities that are parallel, such as, World Bank's assessment of future development receives data from the country's assessment of IMF. These two organizations also join efforts in helping countries that have debts to develop without accruing any more debts (Wolf, 2014).
The only company that tackles the regulations between countries globally is the World Trade Organization (WTO). WTO ensures that exchanges between countries are free and smooth. The aim is to make profits and give assurance. Sellers can know the goods that they can supply while the buyers can identify the services that they can receive. A peaceful economic world that is also accountable is due to the profits that are made and even assurances (Seabrooke & Wigan, 2014).
Decisions by WTO are achieved through consensus between the member nations, and the parliament of the members corrects those decisions. WTO has a settlement process for disputes, where disputes about trade are directed, where attention is given to the interpretation of commitments and agreements and ensuring adherence to trade policies of the countries (Wolf, 2014). This prevents disputes from being seen as military or political matters. Obstacles between nations and individuals are put aside through the lowering of the standards of trade by WTO. In summary, the agreements of WTO are the multilateral system of trade, discussed and signed by the trading nations of the world, and corrected in parliament, and are the regulations for carrying out the global trade. These agreements are contracts that assure essential rights to trade, to help businesspeople conduct their businesses. Therefore, the general objective of WTO is elevating the living standards of people. The contracts, whose signing and implementation is foreseen by WTO, are also bound by the government of the countries within limits that are agreed.
WB, IMF, and WTO are all United Nations institutions formed to elevate the living standards globally. IMF has created an image for itself through working to enhance cooperation in finances, ensuring a significant growth in the economy, reduction in poverty and securing the financial stability of counties. Its crucial mandate is to ensure that the international monetary system is stable. They offer financial aid to the countries that are experiencing challenges in the economic center. The World Bank provides technological and financial support to enhance development and reduce poverty. The World Trade Organization is concerned with the regulations of trade between nations. Its actions are geared towards coming up with trade agreements to enhance trade across the borders and mediating the settlement of disputes between countries. All these organizations are working to raise the standards of living in the globe.
It is worth noting that globalization is an aspect that cannot be ignored. It has influenced each aspect of human life and goes on enhancing its impact all through the universe. And as much as there are negative features associated with globalization, most people acknowledge that it’s a formidable force that brings about economic development. In the past, there were instances of nationalism and protectionism. Nevertheless, globalization has been accepted by the majority and hence, its impact is universal. Therefore, the world has become a small village and this is something that need to be encouraged. Things such as knowledge sharing has been made quite easy and in the long run, development continues to reach every part of the universe. This, in turn, enhances human life and the social welfare of every person.
References
Seabrooke, L., & Wigan, D. (2014). Global wealth chains in the international political economy. Review of International Political Economy , 21 (1), 257-263.
Wolf, M. (2014). Shaping globalization. Finance and development , 51 (3), 22-25.
