What is the IMF and World Banks relationship to the World Trade Organization (WTO)?
The IMF, World Bank and the WTO all share a commitment to “free trade” and binding developing countries into the global economy. The WTO, which implements agreements governing world trade and administers a binding mechanism to resolve trade disputes between nations, generally operates independently of the IMF and World Bank. In November 1999, however, the IMF, World Bank and WTO announced a new “coherence agreement” in which they pledged to coordinate future activity. It is unclear what this will mean in practice, but some fear the IMF and World Bank may incorporate the very particularized elements of WTO agreements into their lending conditions. 4. How does the IMF set its policies? The IMF is governed primarily by an executive board that consists of representatives of the IMF member countries, with a heavier weighting to countries that provide more money to the Fund. The executive board sets broad policy and approves loans. The agency’s bureaucracy handles the massive, day-to-day ope
