LESSON 5

• INTERNATIONAL FINANCIAL INSTITUTIONS (IFIs)

  -        ORGANIZATIONS ESTABLISHED BY TWO OR MORE COUNTRIES PROMOTING FINANCIAL STABILITY, ECONOMIC DEVELEPMENT, AND COOPERATION AMONG COUNTRIES.
• INTERNATIONAL MONETARY FUND

  -        The 190 member nations that make up the International Monetary Fund (IMF) strive to promote international trade, ensure financial stability, encourage high employment and sustainable economic growth, and lessen poverty on a worldwide scale.
• WORLD BANK GROUP

  -        World Bank Group is one of the biggest worldwide resources of capital and expertise for developing nations
• Five Institutions of World Bank Group

  ·        International Bank for Reconstruction and Development (IBRD)

  ·        International Development Association (IDA) International Finance Corporation (IFC)

  ·        Multilateral Investment Guarantee Agency (MIGA)

  ·        International Centre for Settlement of Investment Disputes (ICSID)
• WORLD TRADE ORGANIZATION

  -        The World Trade Organization (WTO) is a global institution that monitors and facilitates international trade among nations.
• REGIONAL DEVELOPMENT BANK

  -        A regional development bank is a type of financial institution that is created by nations in a particular region with the aim of promoting regional integration, poverty reduction, and economic growth.
• CENTRAL BANK

  -        A central bank is an example of financial institution that controls the money supply, sets interest rates, and manages the banking sector in a nation or alliance of nations.
• ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS IN THE CREATION OF A GLOBAL ECONOMY

  • ·        Provide development assistance:
  • ·        Promote economic stability:
  • ·        Support international trade and investment:
  • ·        Provide financial regulation and supervision:
  • ·        Facilitate debt relief:
• GLOBAL INTERSTATE SYSTEM

  -         THE STRUCTURE OF CONNECTIONS AND EXCHANGES BETWEEN SOVEREIGN STATES ON A WORLDWIDE SCALE IS KNOWN AS THE ‘’GLOBAL INTERSTATE SYSTEM’’.
• State - a region with governance and with law
• Interstate - things that happen between different states but no state can impose control onto other states.
• INTERSTATE SYSTEM

  -         A SYSTEM CONSISTS OF DIFFERENT COMPONENTS THAT INTERACT WITH EACH OTHER TO ACHIEVE A COMMON GOAL. IN AN INTERSTATE SYSTEM, THE COMPONENTS ARE THE DIFFERENT STATES AND THE INTERACTION CAN BA COOPERATION, DIPLOMACY OR WAR.
• PRINCIPLES UNDER THE INTERSTATE SYSTEM

  ·        SOVEREIGNITY

  ·        TERRITORIALITY

  NON-INTERFERENCE
• GLOBAL GOVERNANCE

  -         GLOBAL GOVERNANCE REFERS TO THE SYSTEMS, PROCESSES, AND INSTITUTIONS THROUGH WHICH INTERNATIONAL AFFAIRS ARE MANAGED AND REGULATED.
• INTERNATIONAL ORGANIZATION

  -        A group or association comprising multiple countries or sovereign states that collaborate to achieve common goals or address shared concerns on an international scale.