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The role of IMF?

and OECD

Mariana Nastase Panduru Beatrice Group 940

What is globalization? (thoughts) process of extending social relations across world-space arise from the movements of people, things and ideas internationalization or integration

What it actually is? A process which diminishes the necessity of a common and shared territorial basis for social, economic, and political activities, processes and relations. It is deterritorialization Jan Aart Scholte It is not: internationalization, liberalization, westernization.

Economic and financial globalization and the expansion of world trade have brought substantial benefits to countries around the world. But the current financial crisis has put globalization on hold, with capital flows reversing and global trade shrinking. The dramatic collapse in world trade in 2008 seems to have resulted from strongly synchronized drops in trade across countries due to the combined effects of several factors: the credit crunch, the spread of global value chains, and falling consumer and producer confidence.

The

recent economic crisis has underscored the power of globalisation but has also shown the vulnerability of the global economic system. Global linkages have increased the economic interdependence between countries and this facilitated the spread of the crisis. What started as a financial crisis in the United States turned rapidly into a global economic crisis, leading to a dramatic collapse of international trade and foreign direct investment.

It is useful to think about three dimensions of the inter-relation between financial globalisation and the global crisis. 1. First, did financial globalisation materially contribute to the origination of the global financial crisis? 2. Second, once the crisis occurred, how did financial globalisation affect the incidence and propagation of the crisis across different countries? 3. Third, how has financial globalisation affected the management of the crisis at national and international levels?

international

economic

organization
originated founded

in 1948 as OEEC

in 1961 economic progress

stimulate

and world trade


34

Member States democracy and

promote

the free-market economy


HQ

in Chteau de la

Muette, Paris

International Monetary Fund Bretton Woods Institution Initiated in 1944 HQ in Washington, USA stabilize exchange rates assist the reconstruction after WWII countries contribute with money, imbalanced countries can borrow funds temporarily promote international economic cooperation, trade, employment

World Bank Bretton Woods Institution international financial institution provides loans to developing countries official goal is the reduction of poverty promote foreign investment, international trade, and capital investment.

The OECD Strategic Response to the financial and economic crisis The OECD Strategic Response, which was developed with the collective inputs of the OECD Council, the Committees and the Secretariat, aims both to address the crisis and to seize the opportunity to build a stronger world economy. For decades, the OECD has advised Member countries and helped coordinate their policies. The Organisations coverage of a wide range of policy issues directly relevant to the current crisis and its focus on medium-term responses and long-term solutions to policy challenges are unique strengths.

1. 2.

Domestic Resources International Resources (FDI)

Development Recipe

One of the Economic Theories

3.
4.

Trade
Structural Assistance (ODA)

5.
6.

Debt Relief
Staying Engaged

K N

I
F

B J

1)

2)

3)

OECD part of an international trade system together with IMF and World Bank Poverty is one of the main challenges these organizations try to overcome International Business/trade and cooperation are becoming more and more interconnected Recent trends such as globalization provide a future basis for a better economy