Essay Sample on Social Impact of Business

Introduction

Universally, there is no agreed globalization definition. However, economists use this term to refer to the integration of the international community. Globalization is regarded as an irreversible force imposed by some countries and institution such as IMF, World Bank, and World Trade Organization. Globally, it is necessary to establish a strong financial international architecture to get rid of this globalization challenges. However, this essay will evaluate the role played by the World Bank, International Monetary Fund and World Trade Organization in addressing globalization and how this institutions helps in improving the livelihood of people in the world through economic development, financial assistance and free trade across the world.

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The Role of the World Bank in the Acceleration of Globalization

However, the World Bank has been at the forefront in ensuring these globalization challenges are resolved through partnering with governments in ensuring that it provides a robust financial system, effective judicial system, and strong governance. About 80 % of the poor people in the world live in middle-income countries. (Decapua, 2012). The World Bank is however encompassed with the role of providing a strong financial support to these countries. This body is focusing on securing a long term funding, giving some advisory services, addressing weaknesses in structural, social and sectoral policies and creating the right institutional framework and policy. Moreover, the World Bank has a mandate of reducing poverty and promoting long term economic development in helping emerging countries in the world. Therefore, reducing poverty has been attained through implementing some projects and reform that includes health centers building, schools, and fighting diseases, provision of electricity, water, and environmental protection. World Bank works with other bodies such as the IMF at many levels in assisting member countries to work together on some initiatives. This collaboration enables world bank staff to conduct missions all over the world. The main role of the world bank in accelerating globalization includes reducing debts burdens, reducing poverty, setting the stage for the development agenda of the year 2030 and accessing financial stability.

The Role of the International Monetary Fund in Acceleration of Globalization

IMF has a significant role to play in ensuring that globalization works better. This body was created in the year 1944 with the aim of sustaining and restoring the global integration benefits, through the promotion of international economic cooperation. The main mandate of this body is the promotion of macroeconomic policies and the international monetary system function for sustained economic growth. IMF has implemented a lot of reforms that are designed to strengthen and improve its cooperative nature and to serve its members.

IMF represents a political choice that favors international economic integration. This body believes that globalization has a huge potential in contributing to economic growth which is necessary to reduce global poverty. This body also believes that the only way to improve the living standard among developing nation is through economic growth that may only be attained through globalization. IMF, therefore, has the mandate to safeguard global financial system, helps its member countries to safeguard this financial system and ensure that its members take advantage of the international integration in the economy of the world and maximizing the risks which are associated with this role. IMF has strengthened its economic governance through promoting codes and standard use in driving a sound financial, economic management, and corporate governance internationally. IMF is working in ensuring that it safeguards the integrity and stability of the financial system as a worldwide public good. IMF collaborates with World Bank to ensure that it combats laundering of money and strengthening of financial sectors globally.

IMF seeks to alleviate the negative globalization impacts on the world economy. This is through ensuring international financial system stability and helping some individual nations in taking advantage of international capital market investment opportunities while reducing the adverse shocks vulnerability. A lot of countries are still in the stage of global economic integration. Therefore they have a role to play in ensuring that globalization works to their advantage. Moreover, a lot of developing countries do not have adequate resources to participate fully in the global economy. Therefore they require additional assistance from bodies such as the international community. However, as a universal body, the IMF is committed to ensuring that it engages with the emerging nations. In reducing poverty, this body has joined with other international institution and countries in supporting sustainable development goals of poverty alleviation.

The Role of the World Trade Organization in the Acceleration of Globalization

Before WTO was formed, there were two episodes where the world witnessed output growth and rapid trade coming together with a shift in the involved economies relative shifts. This two episode were characterized by capital movement and flow of labor and increased trade integration. WTO has however played a key role in trade integration globally and in ensuring that countries make a political decision that aims at removing institutional barriers that affect capital flow and international trade and in providing incentives to companies. It has a major role in global economic, international trade, legal and political issues that arise in business as a result of globalization. This body supports globalization at the national level through structural adjustment and unilateral liberalization for export growth.

WTO is said to be the most significant regulator of international trade. It allows an individual to enjoy products and services anywhere in the world. (Collins, 2015). It also has a mandate of setting terms in the regional level where agreements may be signed. WTO helps to manage globalization at a world level from a trade perspective. WTO central operating principle indicates that a commercial interest should outweigh all other interest and any obstacle in expansion and operations of the global business enterprise must be subordinated.

WTO has four main objectives that include enforcing and setting rules for international trade, improving policy transparency, providing a forum that helps in monitoring and negotiating trade liberalization. Therefore its members are expected to limit trade with tariffs and are emphasized to continue providing market access globally. (MCWhinney, 2000). WTO globalization perspective of global scenario role is to ensure that there is a fair trade functioning in the world. This body creates a forum that helps the governments to negotiate various trade agreements. It allows countries to settle trade disputes. This role has helped in maintaining bilateral relations and world peace between its member countries through consultation, negotiation, and mediations.

World trade collaborates with other bodies such as IMF and World Bank to make cohesiveness in building global economic policies. This global economic policy helps to increase WTO contribution in achieving a great coherence in economic policymaking. This policies also recognize that trade liberalization contribution enables the development and growth of national economies.

Conclusion

Globalization has played a key role in alleviating poverty. It may be termed as a challenging opportunity because it is all about opportunity and risks that ought to be managed at the national level by a strong financial, structural and social system. The world is interconnected and is changing rapidly due to globalization thus international institution such as World Bank, International Monetary Fund, and World trade organization should be in the front line to ensure that globalization is achieved and thus all the nation in the world benefit from economic growth, free trade, and financially.

References

Collins, D. (2015). The World Trade Organization: A beginner's guide. London: One world Publications.

Decapua, J. (2012). Where Do the World's Poor Live?. Retrieved from https://www.voanews.com/a/poverty-projections-28aug12/1496954.html

MCWhinney, E. (2000). From GATT to the WTO (p. 9). The Hague: Kluwer Law International.