Structure:

ADI submits to the IBRD president.

Council of Managers is a high body of Association.

Staff of the ADI divides on 4 sectors:

• financing

• policy

• planning

• investigation

Financial sources of the ADI are:

• incomes of the IBRD;

• fees of state-members;

• fees of rich state-members.

III. IFC is a specialized office of the UNO, founded in 1956, as the IBRD department. Just IBRD members can be a member of the IFC.

Aims of the IFC:

• finance of private enterprises, free compensation government guarantees;

• combination of local and external capitals with leading management;

• stimulation of private capital for investment industries of the state-members.

IFC finances economy of developing and Eastern European states. Term of loan is 7-12 years. Loan is gained and put out by the same currency. Resources of the IFC consists of state-members fees, incomes of corporation, subsides of the IBRD.

Structure:

Council of Managers is a high body of the IFC. Each manager of the World Bank (with deputy) is a manager of the IFC automatically. Annual meeting of the IFC is held with meeting of the World Bank simultaneously.

Council of Principles coordinates current activity. Council consists of 24 principles of the World Bank and are members of the IFC simultaneously.

President of the IFC is chairman of the Principles Council.

Executive President responds for current activity of Corporation.

Bank Consultative Commission consists of 8 representatives of the leading International Institutes and discusses business political problems, and Corporation strategy with IFC administration.

Business Consultative Committee (leading businessmen, bankers, statesmen) meets with IFC administration for discussing economic and financial problems.

Departments of the IFC are situated in Frankfurt on Main, London, Paris and Tokyo. Representations of Corporation act in Africa (Abidjan, Accra, Dual, Harare, Cairo, Lagos, Nairobi), Asia (Bangkok, Beijing, Jakarta, Islamabad, Istanbul, Manila, Delhi), Latin America (Boones-Aires, Mexico, San-Paulo), Europe (Budapest, Moscow, Prague, Warsaw, Vienna).

Consultative Bureaus on elaboration of projects act in Washington, Abidjan, Accra, Dual, Harare, Nairobi, Bridge Town, San-Jose, Warsaw, Poznan, Sydney. 175 states are members of the IFS.

IV. MIGA was initiated by Seul Convention on October 11, 1985 and formed in 1988. MIGA has legal and financial independence.

Council of Managers is a high body of the MIGA and meets annual. Council of Principles responds for current business. President of the MIGA assigns by President of the IBRD.

V. ICSID was founded due to Convention on regulation in investment disputes between states signed on Oct.14, 1966. ICSID consists of Administrative Council and Secretariat. President of the World Bank is a Chairman of the Administrative Council. Administrative Council consists of one representative of states ratificated Convention. All members of the ICSID are members of the World Bank. Center provides base for regulation disputes between state-members and private foreign investors. Process is held in the Head-Quarter of the ACSID in Washington. ICSID has treaties with arbitration Court in Hague, regional arbitration centers Asian-African Juridical Consultative Committee in Cairo, Kuala-Lumpur, Australian Center of International Commercial Arbitration in Millburn, Australian Arbitration Center in Sydney, Singapore International Arbitration Center and Commercial Arbitration Center of Cooperation Council Persian Gulf States in Bahrain.

Glossary

Pay off	погашение	Өтеу
Current	текущий	Күнделікті
Fee	взнос	Жарна төлеу
Backward	отсталый	Артта қалған
Subside	дотация	Дотация
Simultaneously	одновременно	Бір мезгілде

Tasks for IWS: Prepare information about IBRD activity.

Task for IWS under a teacher’s control: Write a short report: “Aim, structure and membership of the IDA”.

Home tasks: Find information about basically institutes of the World Bank.

List of the reference on the theme

1. Международные организации системы ООН. – М., 1990, с.135-145

2. Организация Объединенных Наций. Сб.документов.- М., 1981,с.123-134

3. Улахович В. Международные организации. Справочное пособие. Москва. Минск, 2005, с.89-104

Lecture 10

Theme of the lecture: International Monetary Fund

The objective of the lecture. Students should know main aims, activity, structure, methods of the of the financial credit specialized bodies of the UNO.

Outline of the lecture

1. Objective of International Monetary Fund.

2. Structure and activity of International Monetary Fund.

The brief content of the lecture

1. IMF is a specialized agency of the United Nations established in 1945 to promote international monetary cooperation and expand international trade, stabilize exchange rates, and help countries experiencing short-term balance of payments difficulties to maintain their exchange rates. The Fund assists members by supplying the amount of foreign currency it wishes to purchase in exchange for the equivalent amount of its own currency. The member repays this amount by buying back its own currency in a currency acceptable to the Fund, usually within three to five years. The Fund is financed by subscriptions from its members, the amount determined by an estimate of their means. Voting power is related to the amount of the subscription – the higher the contribution the higher the voting right.

Fund fulfils regulation and financial functions. 184 states are members of the IMF. State-members of the IMF oblige follow to Code of Economic Behavior, cooperate with Fund and between each other for provision agreements on exchange operations, stability of Monetary rates, prevention of unpleasant factors of national and international development. Fund controls over exchange rates policy, forms common pool of foreign currency, using for prevention of balance deficit of the IMF state-members. Short or middle term credits promotes to states liquidate balance deficit, without using trade or payment limitation. Policy of Fund regulation provides of credit facilities and eased their excess to the financial market.

The standard unit of account used by the International Monetary Fund. In 1970 members of the IMF were allocated SDRs in proportion to the quotas of currency that they had subscribed to the fund on its formation. There have since been further allocations. SDRs can be used to settle international trade balances and to repay debts to the IMF itself. On the instructions of the IMF a member country must supply its own currency to another member, in exchange for SDRs, unless it already holds more than three times its original allocation. The value of SDRs was originally expressed in terms of gold, but since 1974 it has been valued in terms of its members’ currencies. SDRs provide a credit facility for IMF members in addition to their existing credit facilities (hence the name); unlike these existing facilities they do not have to be repaid, thus forming a permanent addition to members reserves currency.