Topic: Important International institutions, agencies and fora- their structure, mandate.
3. The reforms to the Bretton Woods system would need to take into account the changing global economy, the perspectives and needs of a broader range of countries, and the potential for financial instability. Discuss.
Difficulty level: Tough
Reference: Live Mint , Insights on India
Why the question:
For the Bretton Woods twins to retain their heft, they should raise their game to serve the world better.
Key Demand of the question:
To write about the drawbacks of WB and IMF and suggest possible reforms in it.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by giving context.
Body:
First, in brief, write about the major aspects of global economy that WB and IMF deal with.
Next, using facts and figures to substantiate, give the successes and limitations of WB and IMF in regards to – voting rights, dominance by global north, foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world etc.
Next, suggest possible reforms that are needed in the IMF.
Conclusion:
Conclude by writing a way forward.
