We are currently in a period where international institutions, established after the Second World War, are being highly debated. Despite existing in various fields such as economy, health, security, and trade, these international institutions have failed to solve the world's threatening issues and, in fact, have contributed to their escalation.
So, which international institutions are related to the economy?
THE IMF AND THE WORLD BANK
The IMF is an international institution that provides conditional short-term loans to countries facing financial problems, but applies the same prescription to all countries experiencing financial crises, resulting in the perception that many countries have not emerged from crises with the applied prescription.
On the other hand, another prominent international institution related to the economy is the World Bank. The World Bank was established to provide longer-term financing for infrastructure investments in many countries. However, many countries that borrow long-term debts are struggling with increasing debts, particularly many poor African countries are struggling to repay their debts to the World Bank.
Moreover, the fact that the IMF president is from European countries and the president of the World Bank is also American has become an established perception that these two international institutions are shared between the United States and Europe, leaving other countries out.
Another important international institution is the World Trade Organization. The World Trade Organization has been criticized for promoting global trade by disregarding the economic conditions and boundaries of developing and poor countries.
This situation has led to the economic bankruptcy of many poor countries' producers who cannot compete and has further exacerbated the economic conditions to the disadvantage of poorer and developing countries. This is because developed countries not only easily export their industrial products to poor countries but also protect their agricultural producers with non-tariff barriers to protect their agricultural products.
Therefore, it is considered that the World Trade Organization has been indifferent to many advantageous situations for developed countries.
WHAT IS THE SOLUTION?
Since the problems today are different from the problems in the early years of international institutions, and many new economies are emerging worldwide, and justice in representation is needed in many areas, these institutions need to be reformed according to the conditions of the day.
