Karen_A._Mingst,_Ivan_M._Arregu_n-Toft]_Essentia

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9.1

World Bank

Loans funds to states proposingeconomic development projects

International Finance

Corporation (IFC)Provides loans to

promote growth of privateenterprises in developing

countries

InternationalDevelopment

Association (IDA)Provides interest-freeloans to the poorest

countries

Multilateral InvestmentGuarantee Agency (MIGA)Encourages the flowof private equity capital todeveloping countries

International

Monetary Fund (IMF)

Original purpose was to guarantee

exchange-rate stability; today purposeis to act as lender of last resort to keep

debtor countries from

collapsing

World Trade

Organization (WTO)

Replaced GATT as forum for

negotiating new trade agreements;

includes stronger dispute-settlement procedures

General Agreement

on Tariffs and Trade (GATT)

Series of multilateral trade negotiations

designed to stimulate trade by

International Tr lowering trade barriers

ade

Organization(was not formed)

At the Bretton Woods Conference in July 1944, world leaders agreed to create three institutions to facilitate worldwide economic coordination and development. Two of these institutions—the World Bank and the International Monetary Fund—were created shortly after the conference. Although the third institution proposed at Bretton Woods—the International Trade Organization—was never created, the principles behind it were later incorporated in the General Agreement on Tariffs and Trade, which in 1995 became the World Trade Organization. The latter is not technically part of the Bretton Woods institutions.