1. IMF WORLD BANK WORLD TRADE ORGANIZATION
Who? What? When? Where? Why?

3. at the end of this lecture you’ll...
... have a basic understanding of the IMF, World Bank and WTO
... be able to identify some Caribbean countries that have engaged the IMF and World Bank
... recognize the pros and cons of financial assistance from the IMF and World bank
... identify some ways the WTO affects the Caribbean

4. IMF & world bank
WHAT?
IMF and World Bank are international organizations that provide financial assistance to countries in need.
The World Bank is comprised of 5 agencies - (1) International Bank for Reconstruction and Development (IBRD), (2) International Development Association (IDA), (3) International Finance Corporation (IFC), (4) the Multilateral Investment Guarantee Agency (MIGA), (5) International Centre for Settlement of Investment Disputes (ICSID)

5. IMF & world bank
The IBRD provides loans to middle-income and creditworthy low- income countries.
The IDA provides interest-free loans (credits) and grants to the poorest countries.
The IFC provides loans, equity and technical assistance to stimulate private sector investment in developing countries.
The MIGA provides guarantees against losses to investors in developing countries.
The ICSID provides international facilities for conciliation and arbitration of investment disputes.

6. IMF & world bank
The IMF is a specialized agency of the United Nations but has its own charter, governing structure and finances.
187 countries are members of the IMF which uses a quota system to assign voting rights to each member. Each member’s assigned quota is based on the relative size of its economy.
The top 5 members of IMF are USA, Japan, Germany, UK, France (as of 2010).

7. IMF & world bank
When?
Established in 1944 at the Bretton Woods Conference
Where?
Both are headquartered in Washington, D.C but have small overseas offices in some member countries

8. IMF & world bank
Why?
Initially, both the Fund and Bank were established to provide short-term financial assistance for reconstruction of European countries devastated by World War II.

9. IMF & world bank
In the 1970s oil prices rose by as much as 400% causing prices of goods to soar
Governments around the world, especially in developing countries found it extremely difficult to pay for goods and services
IMF and World Bank were seen as an option for providing short-term liquidity and (possibly) long-term assistance for development.

10. imf & wb - pros and cons PROS
provide short-term financing to assist with specific projects
provide much needed cash that can be used to address a country’s immediate financial needs
provide technical expertise to governments in various areas

11. imf & wb - pros and cons CONS
Historically, the structural adjustment features of currency devaluation and open trade markets have weakened rather strengthened economies.
Increased debt burden on developing countries (Caribbean countries among the most indebted countries in the world).
Increased debt increases the likelihood of future increases in taxes

12. imf, world bank & the caribbean
Antigua & Barbuda (IBRD)
Belize (IBRD)
Dominica (Blend)
Grenada (Blend)
Guyana (IDA)
Haiti (IDA)
Jamaica (IBRD)
St. Kitts & Nevis (IBRD)
St. Lucia (Blend)
St. Vincent (Blend)
Trinidad & Tobago (IBRD)

13. imf, world bank & the caribbean
IMF & The Caribbean
Antigua & Barbuda
Dominica
Grenada
Jamaica
St. Kitts & Nevis
St. Lucia
St. Vincent & the Grenadines
(these countries either have Rapid Response Facilities [RRF] or Exogenous Shock Facilities [ESF] arrangements with the IMF).

14. world trade organization
WHAT?
The WTO is an international organization that focuses on the rules of trade among nations.
Made up of approximately 150 member countries
When?
Established in 1995

15. world trade organization
Where?
Headquartered in Geneva, Switzerland
Why?
The WTO facilitates trade negotiations, implements and monitors trade agreements, and arbitrates disputes.

16. wto and the caribbean The “Banana War”
Removed protective trade agreements between the ACP countries and EU
Forced the small banana producers of the Caribbean to compete on on “equal” terms with large, U.S. based, multinational corporations (e.g. Chiquita)

18. wto and the caribbean US Omnibus Appropriations Act ruling
WTO ruled in favour of Cuba against U. S.
Section 211 of the Act hindered foreign investment in Cuba as it related to world-known Cuban products while allowing a U. S. company to illegally sell its product under a Cuban trademark.

19. The End