INTERNATIONAL LAW

WTO, World Bank and IMF - how proactive are they in the International Economic Law for Emerging markets?



WTO, World Bank and IMF - how proactive are they in the International Economic Law for Emerging markets?

Introduction

The economies of the world require a focal point where each of them can connect to global entities. The nature of interdependency is apparent in the global economies of the world. Therefore, International Economic Laws determine the economic order or relation among distinct nations around the globe. The international economic laws govern a wide array of regional collaborations. The laws present directives pertaining to trade, investments, finances and commercial governance. Moreover, they address both public and private sector economic regulations.

World Trade Organisation, IMF and World Bank are the international organisations, playing a significant role in establishing the economic well-being. These organisations present institutional framework for a stable economic condition in relation to global economic perspective. Trade regulations, monetary relations, credit and debts principles are the key areas in managing the sovereign economies. In the recent years, the case of emerging markets resound the economic laws foundation. The challenge is to devise international laws for ensuring long-term economic prosperity. It is essential to realize the role of WTO, IMF and World Bank in enhancing the efficacy of emerging markets.

The paper examines the role of these organisations in International economic laws for emerging markets. The discussion explores how proactive are they in supporting the emerging market ideologies. For that matter, a brief introduction of the organizations' functioning is demonstrated. Further, the write up investigates various dimensions pertaining to the discussed issue. The international economic laws are examined in the context of emerging economies.

Discussion

World Trade Organisation (WTO): An International Trade Regulator

WTO is an international organisation for regulating trade between different nations of the world. It is the only organisation dealing with global trade rules. The organisation nurtures the principles of multi-lateral trade system. It aims to guarantee free, smooth and predictable trade flows by lowering trade barriers. WTO enforces trade regulations by developing mutual consensus of the member countries.

WTO's role in International Economic Law for Emerging Markets

In the 1980's, heavy state ownership described the working characteristics of emerging markets. The major weaknesses lied in the entrepreneurial skills, state planning, and the level of autarchy. To some analysts, populism was the major reason behind the over-expensive macro-economic policies. This led to the situation in which net gains could not be brought by devaluation of exchange rate. As a result, the developing countries had to face uncontrollable inflation rate and adverse living standards. According to WTO, “Institutional rigidities” was the major barrier to unproductive trade. WTO presented Atlantic Charter that emphasised on non-discriminatory access to global markets on easy economic terms (Herdegen, 2013, p.171). The Uruguay Round brought about a lot of changes in the international trading system especially for the emerging markets. In the year 2001, the WTO meeting took place in Qatar where International economic laws for emerging markets were ...