The Role of Multilateral Institutions in Accelerating Globalization

The Role of Multilateral Institutions in Accelerating Globalization
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The Role of Multilateral Institutions in Accelerating Globalization
The World Bank, International Monetary Fund and World Trade Organization have distinctively increased interconnectivity and interdependence of economies of the entire world. These institutions influence the direction of globalization through enacting global role and undertaking various roles. These roles increased the likelihood of convergence of world economies. These organizations are formulated with the objective of serving several social, political and economic issues of all economies in the world. Their actions may have either direct or indirect impact on the globalization. In this perspective, the roles of the World Bank, International Monetary Fund and World Trade Organization have accelerated globalization (Sharma, 2012).
World Bank provides debt reliefs to low income countries in order to build and maintain sustainable and independent governance. It, therefore, works closely with governments to ensure effective judicial system, robust financial system and strong governance. These vital roles of World Bank help to fight social issues, including corruption and war. As a result, it creates an enabling environment attractive to both domestic and foreign investments, thereby encouraging globalization (BusinessmapofIndia, 2011).
Statistically, more than 80% of the world's poor are found in middle-income countries. These countries demand utmost help from multilateral institutions and other economies in order to create a strong financial stability. The World Bank participates in such situations by promoting structural and social reforms that ensure the realization of the next stage of development. In this perspective, the World Bank focuses on securing long-term funding, providing advisory services and formulating the right institutional framework and policies. These...