Set 5B — Knowt flashcards

What was the Bretton Woods Conference?

The United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods, New Hampshire, where delegates from 44 nations created a new international monetary system.

What was the purpose of the Bretton Woods system?

To facilitate worldwide economic coordination and development.

Which three institutions were proposed at the Bretton Woods Conference?

The World Bank, the International Monetary Fund (IMF), and the International Trade Organization (ITO).

Which two institutions were created shortly after the Bretton Woods Conference?

The World Bank and the International Monetary Fund (IMF).

What happened to the proposed International Trade Organization (ITO)?

It was never formed; principles behind it were later incorporated into the General Agreement on Tariffs and Trade (GATT).

What was GATT, and when was it signed?

The General Agreement on Tariffs and Trade, signed by 23 countries in 1947.

When was the World Bank established, and what was its original purpose?

It was established in 1944 to help rebuild Europe and Japan after World War II.

What is the World Bank's main goal?

To reduce poverty by lending money to governments of poorer member countries to improve their economies and people's standard of living.

How are World Bank projects usually financed?

The World Bank provides part of the financing; the borrowing government and other international or private sources typically provide the rest.

What is the World Bank Group?

The collection of organizations within the World Bank that specialize in different activities.

What does the International Bank for Reconstruction and Development (IBRD) do?

It provides policy advice and lends to low- and middle-income countries.

What does the International Development Association (IDA) do?

It lends to low-income countries.

What does the International Finance Corporation (IFC) do?

It lends to the private sector.

What does the Multilateral Investment Guarantee Agency (MIGA) do?

It encourages private companies to invest in foreign countries.

What does the International Centre for Settlement of Investment Disputes (ICSID) do?

It helps private investors and foreign countries resolve disagreements.

What lending terms can the World Bank offer developing countries?

It can lend to middle-income countries at lower interest rates than commercial banks and provide interest-free loans to the poorest developing countries, with longer repayment periods.

How are World Bank shares allocated?

A country's number of shares is based roughly on the size of its economy.

According to the slides, which country was the largest single shareholder of the IBRD, and what share did it hold?

The United States, with 16%.

What is the World Bank Board of Governors?

The highest decision-making body of the World Bank, representing government shareholders.

Who usually serves on the World Bank Board of Governors?

Finance ministers, central bank governors, or other senior government officials.

How often does the World Bank Board of Governors meet?

Once a year.

What are the responsibilities of the World Bank Board of Governors?

Review operations and policies, discuss major development issues, approve key documents, and set global priorities for poverty reduction and development.

What is the World Bank Board of Executive Directors responsible for?

The day-to-day operations of the World Bank.

According to the slides, how many Executive Directors represent the World Bank's 189 member countries?

25 Executive Directors.

What are the main responsibilities of the World Bank Board of Executive Directors?

Approve loans and guarantees, approve new policies and the administrative budget, review country assistance strategies, and make financial and borrowing decisions.

How does a World Bank project generally work?

A country identifies a need and requests a loan; the country and Bank study the plan; Bank staff review it; the parties negotiate implementation; the loan is approved and paid in installments; progress and results are monitored.

What is the Asian Infrastructure Investment Bank (AIIB)?

A China-proposed multilateral development bank intended to finance infrastructure needs throughout Asia.

When did China propose creating the AIIB, and what was its stated purpose?

China proposed it in 2013 at the Asia-Pacific Economic Cooperation Summit to finance infrastructure needs throughout Asia.

What concerns do some observers have about the AIIB?

Some argue it could undermine efforts to improve governance, environmental, and social standards; others point to its projects and safeguards as reasons to consider U.S. membership.

When was the International Monetary Fund (IMF) established, and what is its role?

It was established in 1944 to provide emergency financing, help countries stabilize their economies, and support exchange-rate stability.

What are the IMF's three main activities?

Policy advice and surveillance; financial assistance; and capacity development.

What is IMF policy advice?

Monitoring economic and financial developments and advising countries on their economic policies.

What is country-level oversight by the IMF?

Annual visits to member countries to monitor economic and financial developments.

What is multilateral surveillance by the IMF?

Monitoring regional and global economic trends and analyzing how member countries' policies may affect neighboring countries and the global economy.

What is the World Economic Outlook (WEO)?

An IMF report, usually published twice a year with updates in between, that analyzes and projects the world economy in the near and medium term.

How does IMF financial assistance differ from World Bank lending?

The IMF provides financial