List of institutions, how they developed, the basis and limits of power
The US and its allies found it necessary to come up with financial institutions that would help regulate the global economy. As a result, the partners created agencies such as the International Monetary Fund (IMF), World Trade Organization (WTO), and the World Bank Group (WBG) (Scholte, 2012).
The International Monetary Fund was instituted to safeguard monetary cooperation, ensure the stability of currency exchange rates, and broaden currency liquidity internationally so that trade and job creation can be fostered. Through the use of tools such as Special Drawing Rights, the IMF obtains funds from the IMF and disburses them to national banks to curb balance-of-payments problems (Scholte, 2012). The World Bank, also known as the International Bank for Reconstruction and Development (IBRD) was initially formed to give loans to countries that were stable economically, which could repay them. However, the World Bank made significant changes and currently involves itself in development affairs especially in the developing world through issuing of loans. The World Trade Organization provide a rule-based trading system. Summarily, WTO sets rules and regulations that guide the operations of trading of member states. Besides, WTO has a dispute settlement process that helps to solve conflicts of interest.
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Modern globalization
Contemporary globalization is described as the influx of cross-border movements of people, goods, investments, money, messages, and ideas. From this perspective, globalization and internationalization mean the same thing. Many countries currently are opening up their borders to allow trade between each other. Top political leaders support globalization. For instance, the Japanese Prime Minister, Shinzo Abe and the immediate former US president Barack Obama endorsed the establishment of the Trans-Pacific Partnership emphasizing that the partnership would work in their nations’ favor (Commanding Heights, 2017). However, labor unions argue that the organization will lead to loss of jobs, low wages, and benefits, among others. In 2013, globalization remained the triumph of Capitalism. In as much as many countries tried to open up their borders for trade, the powerful nations attempted to outdo each other. The US and China, in particular, were not in good terms because of competition and conflict of interest. Both the two powerful countries were in a rush to gain a sizable share of the more open markets.
References
Commanding Heights . YouTube . (2017). YouTube . Retrieved 12 December 2017, from https://www.youtube.com/watch?v=nB6NW6ynfsw&list=PL255E591332DF144C
Scholte, J. A. (2012). Global trade and finance. The globalization of world politics , 429-448.
