国际经济学英文课件 (2)

Shortcomings of IMF:
• Moral hazard created by IMF bailouts • Conditionality requirements of IMF loans (fiscal
austerity measures) increase poverty in LDCs • Inappropriateness of IMF measures (i.e. 1997
• Prior to the Uruguay round, sectors such as agriculture, textiles & apparel, services, intellectual property rights, were ignored
• role expanded also to dumping, subsidies, NTBs
George is a professor at HBS and the former CEO of Medtronic, which has been involved in one of this year’s highest-profile inversion transactions, a merger with Irelandbased Covidien.
• International Finance Corporation
– Private sector arm of the WB
• Multilateral Investment Guarantee Agency
– Provides political risk insurance (guarantees)
12
WTO
• 159 members
– Russia (2012), Ukraine (2008), Vietnam (2007), China (2001)
• Current president: Jim Yong Kim (US) became the 12th President of the World Bank Group on July 1, 2012.
– A physician and anthropologist
– Former President of Dartmouth College
Benefits provided by IEI
• Establish rules, thereby creating order, increasing stability, and reducing uncertainty
• avoid the international propagation of national or regional crises
• Members pay a fee or quota
• Size of quota depends on country’s GDP and importance of its currency in world trade and payments
• Decisions are made by votes of members; weight of each nation’s vote is proportional to its quota
– Legislative function – Judiciary function (dispute settlement)
• 300 cases in first 8 years • /english/tratop_e/dispu_e/dispu_status_e.htm • Countries must bring disputes to WTO
• Supplies capital to developing countries
• Lends for specific development projects
World Bank Acronyms
• International Bank of Reconstruction and Development
IMF’s organization
• 188 member countries, about 3,000 employees
• Christine Lagarde, a Western European, is current managing director
– Replaced Dominique Strauss-Kahn (DSK)
– Focuses on middle-income and credit-worthy poor countries
• International Development Association
– Provides loans to the poorest countries representing 2.5 billion people
• Members buy shares in the bank
• Number of shares determines the weight of each member in deciding the bank’s policies and practices
– US: 17%
Japan: 6% Germany: 4.7%
• reduce poverty and promote development & economic growth
• provide international public goods that would otherwise not be available through private markets (see table 2.5)
– During a crisis, each country would wait for the others to make risky loans
• Prevent unilateralism and promote cooperation thereby
– reducing conflicts among incompatible national interests – Improving effectiveness of macroeconomic policy
organizations?
Bill George: “[Global corporations] have to insure that they can be competitive around the world, and still be responsible to the national governments they serve. And there’s no such thing as global laws in many, many cases, including tax law. So you get a great deal of dysfunctionality, and I think this is why we need international bodies to help us work our way through these issues and sort them out.”
World Bank Group
• The World Bank Group includes the World Bank (IBRD + IDA), IFC, MIGA, and ICSID
• WB has 188 member countries (same as IMF)
– 10,000 employees
Asian crisis) • Legitimacy and relevancy of IMF is questionable
– Method of selecting its head – World’s foreign currency reserves are today about 20
times larger than the resources of the IMF – Accumulation of reserves by individual countries
• prevent free riding
– In a recession, nations prefer a situation where foreign markets remain open while they close their own markets (an inconsistent proposition)
• They give a greater voice to rich countries
• They are a threat to national independence and sovereignty. For example:
– IMF conditions imposed on borrowers – WTO’s demand to change domestic policies
• Assure a level playing field
Criticisms of IEI
• IEIs lose their effectiveness if they do not have the full support of member countries (credibility issue)
International Economic Institutions
Definition
• “An international institution is a set of rules that govern behavior”
• See table 2.1 for examples
Why we need international
• Fundamental principles:
– Non discrimination (MFN status) – National treatment (same treatment for imports and
domestic goods)
TABLE 6.3 GATT negotiating rounds
• They are large bureaucratic structures that waste urces while sometimes dispensing harmful advice
• They are undemocratic:
– Secretiveness and lack of public input, lack of transparency – Lack of accountability
• International Center for Settlement of Investment Dispute
GATT and WTO
• ITO killed by US, replaced by GATT
• GATT charged with reducing trade barriers
monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction.
• US has 17% of the total votes
• G7 (US, Canada, Japan, Germany, France, UK, Italy) has 45% of total votes
IMF’s role • The IMF promotes international