How the transfer of capital can be influenced by world trading organizations and financial instituti

International Monetary Fund (IMF), the World Bank, they are all count as financial institutions, WTO World Trade Organisation, one of the world largest trading organisation with large number of membership countries. Those organisations and institutions taken a big part of today's global economy. Without them, cross country trade wouldn't be easily available as now, countries wouldn't be developing in such a fast rate. Both IMF and World Bank values more in developing countries, giving loans to help those countries. While WTO on the other hand target both developing and developed countries, in order to promote free trade. This essay will main focus on how WTO, IMF, and World Bank influenced the transfer of capital.

WTO, one of the most powerful trading organisation in the world. It promotes free trade, as well as helping to establish trade between countries. In principle, every nations has equal votes in the WTO, but in terms of practice, rich countries shuts the poor countries out from key negotiations. Efforts being made by the WTO, driven today average tariffs are only a tenth of what they were when General Agreement on Tariffs and Trade (GATT) was in force, and world trade has been increasing in much faster rate compare to GDP. However, the fundamental issue is that "Does free trade benefit all those concerned or is it a subtle way in which the rich nations exploit their poorer counterparts?". Most of critics argues that free trade DOES generate wealth, but not all countries benefit from it. Due to the unfair benefits to poor and rich countries, causing the non-governmental organisations to start campaigns, such as Oxfam campaign "Make Trade Fair". In this campaign, Oxfam listed rules which they want the WTO to achieve in order to make poor countries able to involve in key negotiations. Still, achievements of WTO driven globalisation, making the globe more easier access to different culture, and goods from different countries.

IMF on the other hand, is one of the Financial Institutions. It lends money to governments, more of like "international credit card" for a government, to cover short term debts. IMF also would ensures the process take place in a stable economic climate. Funds from IMF comes from quotas from member countries, more the quotas being given to IMF, country would hold larger votes. Such as United States, it holds 17% of the total votes. However, IMF has been lending money to some of the world's "questionable" leaders such as the former leader of DR Congo. This caused countries IMF lend money to, are still in debt ends up being Heavily Indebted Poor Countries(HIPC). Because IMF lends money to "government", the former "questionable" leaders would not be responsible for the debts made by him/her. However World Bank is slightly different from the IMF.

Instead of lending money to government like IMF, World Bank lends money to developing countries for capital specific programs. It may sounds better compare to IMF, but critics argues that World Bank would pushed countries into further debts, as well as more likely experiencing drop in per capita wealth than to have economic growth. While World Bank Bond Boycott argues that World Bank hinder development of a country, increase in poverty, promoting dependency, etc. Both IMF and World Bank, to some extent they increase the debts of a country, especially they were lending to countries with doubtable leaders, and countries which already in debts, with low economic activity. IMF and World Bank are both trying to help countries, but ends up being with worsen issues.

To conclude, both financial institutions and trading organisations, were big part of today's economy. They are all operates through transfer of capital, all of them benefits the rich countries the most, while poor countries are not just getting none of the benefits, instead causing more problems. Such as increase in poverty, may caused by the open up free trade in the country. Or maybe the force from IMF or World Bank, in order pay back the loans.