The Imf, World Bank And Wto: The Burden Of Developing Countries
...protectionists in the late 19th century created, "an unholy alliance of trade unions and labor parties" which destroyed the, spirit of Enlightenment and led to a "collectivist countermovement" (Polanyi, p.144-145). Following the tumultuous events of World War II, "the urge to organize was given impetus" (Klabbers, p. 21) and the Bretton Woods Conference established what would become the major international financial institutions (IFIs) of the world. The World Bank, the International Monetary Fund (IMF), and the later the ratification of the WTO in 1995; completed institutionalization of world economic policy. One of the major critiques of these institutions is that they impose restrictions that take away national economic sovereignty. This paper provides a careful analysis of how IFIs fit into the global marketplace; specifically how they are controlled and managed by states. Furthermore, it elucidates several key reasons why the transfer of economic sovereignty is vital, while recognizing that certain changes within IFIs could further their intended mission of world-wide economic development.
Abram and Antonia Chayes argue correctly that the "enforcement model" or the use of coercive methods is not effective to use when monitoring treaty enforcement . They chart the course of compliance with international regulatory agreements to understand the thought process being used by countries who do not obey them. The primary understanding that they glean from their analysis is that the managerial approach is more likely to preserve a satisfactory level of compliance with international regulatory agreements based upon the factors of efficiency, interests, and norms (Chayes, p.4). In essence, the existence of international treaty norms broadly promotes compliance. The management strategy requires transparency, capacity building, and dispute settlement...
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