THE WORLD BANK

The World Bank is a vital source of financial and technical assistance to developing countries around the world. Their mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors. They are not a bank in the common sense; they are made up of two unique development institutions owned by 187 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
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Each institution plays a different but collaborative role in advancing the vision of inclusive and sustainable globalization. The IBRD aims to reduce poverty in middleincome and creditworthy poorer countries, while IDA focuses on the world's poorest countries. Their work is complemented by that of the International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) and the International Centre for the Settlement of Investment Disputes (ICSID). The World Bank is like a cooperative, where its 187 member countries are shareholders. The shareholders are represented by aboard, who are the ultimate policy makers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual of the Boards of Governors of the Group and the International Monetary Fund. Because the governors only meet annually, they delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest shareholders, France, Germany, Japan, the United Kingdom and the United States appoint an executive director, while other member countries are represented by 20 executive directors. The World Bank is a lending institution that funds essential infrastructural requirement, globally. World Bank as an institution was designed for investment as well as providing loans.

HISTORY OF THE WORLD BANK

The World Bank is the outcome of the Bretton Woods Conference, held in 1944. It was launched alongside the International Monetary Fund(IMF), in the presence of a number of important world delegates, and many important policy makers from the United States of America and Britain. The World Bank formally began operations on 26th June 1946. The initial authorized capital of the bank was $12 million. The primary purpose of the Bank was to provide loans for reconstruction and rebuilding of Western European countries after World War 2. Another purpose of the Bank was to invest in the developing world. The lending for reconstruction ended in 1967, and into the present the Bank remains the largest source of development assistance. This assistance is intended primarily for projects that were unable to attract private investment. In 1947 the first ever loan was approved to Credit National of France for $250 million, which was the largest loan in real terms made by the Bank.

FUNCTIONS OF THE WORLD BANK

The World Bank's two closely affiliated entitiesthe International Bank for Reconstruction and Development (IBRD) and the Internationalprovide low or no interest loans (credits) and grants to countries that have unfavorable or no access to international credit markets. Unlike other financial institutions, we do not operate for profit. The IBRD is market-based, and we use our high credit rating to pass the low interest we pay for money on to our borrowersdeveloping countries.

The Bank Group uses financial resources and extensive experience to help poor nations reduce poverty, increase economic growth, and improve the quality of life. World Bank provides technical and financial assistance to underdeveloped nations for development schemes like building roads, schools, hospitals, etc. The main aim is to eliminate poverty from the world. The World Bank collaborates with numerous other partners and multilateral organizations, including the World Health Organization (WHO) and the Food and Agriculture Organization (FAO), to realize the most far-reaching results possible. Current global challenges include the financial crisis, high food prices, and climate change.
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FUND GENERATION IBRD lending to developing countries is primarily financed by selling AAA-rated bonds in the world's financial markets. While IBRD earns a small margin on this lending, the greater proportion of its income comes from lending out its own capital. This capital consists of reserves built up over the years and money paid in from the Bank's 185 member country shareholders. IBRDs income also pays for World Bank operating expenses and has contributed to IDA and debt relief. IDA is the world's largest source of interest-free loans and grant assistance to the poorest countries. IDA's funds are replenished every three years by 40 donor countries. Additional funds are regenerated through repayments of loan principal on 35-to-40-year, no-interest loans, which are then available for relending. IDA accounts for more than 40% of our lending. LOANS Countries use investment operations for goods, works and services in support of economic and social development projects in a broad range of economic and social sectors. Development policy operations (formerly known as adjustment loans) provide quick-disbursing financing to support a countrys policy and institutional reforms. Each borrowers project proposal is assessed to ensure that the project is economically, financially, socially and environmentally sound. During loan negotiations, the Bank and borrower agree on the development objectives, outputs, performance indicators and implementation plan, as well as a loan disbursement schedule. While we supervise the implementation of each loan and evaluate its results, the borrower implements the project or program according to the agreed terms. As more than 30% of our staff is based in over 100 country offices worldwide, three-fourths of outstanding loans are managed by country directors located away from the World Bank offices in Washington.

IDA long term loans (credits) are interest free but do carry a small service charge of 0.75 percent on funds paid out. IDA commitment fees range from zero to 0.5 percent on undisbursed credit balances. For FY09 commitment fees have been set at 0.0 percent. TRUST FUNDS AND GRANTS Donor governments and a broad array of private and public institutions make deposits inTrust funds that are housed at the World Bank. These donor resources are leveraged for a broad range of development initiatives. The initiatives vary significantly in size and complexity, ranging from multibillion dollar arrangementssuch as Carbon Finance; the Global Environment Facility; the Heavily Indebted Poor Countries Initiative; and the Global Fund to Fight AIDS, Tuberculosis, and Malariatoo much smaller and simpler freestanding ones. The Bank also mobilizes external resources for IDA concessionary financing and grants, as well as funds for non-lending technical assistance and advisory activities to meet the special needs of developing countries, and for cofinancing of projects and programs. Direct World Bank grants to civil society organizations emphasize broad-based stakeholder participation in development, and aim to strengthen the voice and influence of poor and marginalized groups in the development process. IDA grantswhich are either funded directly or managed through partnerships have been used to:
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Relieve the debt burden of heavily indebted poor countries Improve sanitation and water supplies Support vaccination and immunization programs to reduce the incidence of communicable diseases like malaria Combat the HIV/AIDS pandemic Support civil society organizations Create initiatives to cut the emission of greenhouse gases

ANALYTIC AND ADVISORY SERVICES While World Bank are best known as a financier, another roles is to provide analysis, advice and information to member countries so they can deliver the lasting economic and social improvements their people need. World Bank does this in various ways. One is through economic on broad issues such as the environment, poverty, trade and globalization Another is through countryspecific, non-lending activities such as economic and sector work, where world bank evaluate a country's economic prospects by examining its banking systems and financial markets, as well as trade, infrastructure, poverty and social safety net issues

OBJECTIVES OF THE WORLD BANK

The International Bank for Reconstruction and Development (IBRD), commonly known as World Bank, was result of the Bretton Woods Conference. The main objectives behind setting up this international organization were to aid the task of reconstruction of the war-affected economies of Europe and assist in the development of the underdeveloped nations of the world. For the first few years, the World Bank remained preoccupied with the task of restoring war-torn nations in Europe. Having achieved success in accomplishing this task by late 1950s, the World Bank turned its attention to the development of underdeveloped nations. Over the time, additional organizations have been set up under the umbrella of the World Bank. As of today, the World Bank is a group of five international organizations responsible for providing finance to different countries. As mentioned earlier, the World Bank is entrusted with the task of economic growth and widening of the scope of international trade. During its initial years of inception, it placed more emphasis on developing infrastructure facilities like energy, transportation and others. No doubt all this has benefited the underdeveloped nations too, but the results were not found to be very satisfactory due to poor administrative structure, lack of institutional framework and nonavailability of skilled labour in these countries. Realising these problems, the World Bank later decided to divert resources to bring about industrial and agricultural development in these countries. Assistance is extended to different countries for raising cash crops so that their incomes rise and they may export the same for earning foreign exchange. The bank has also been providing resources for education, sanitation, health care and small scale enterprises. Today, the services provided by the World Bank have increased manifold. The World Bank is no longer confined to simply providing financial assistance for infrastructure development, agriculture, industry, health and sanitation. It is rather significantly involved in areas like removal of rural poverty through raising productivity, increasing income of the rural poor, providing technical support, and initiating research and cooperative ventures. The
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group and its affiliates headquartered in Washington DC catering to various financial needs are listed below on World Bank and its affiliates AREA OF OPERATION
Agriculture and Rural Development Economic policy Education Energy Environment Financial sector, private sector Health, nutrition and population industry Information, computing and telecommunication Law and justice, Social protection Trade Water resource, Water supply and sanitation

WORLD BANK AND INDIA

India's involvement with the World Bank dates back to its earliest days. India was one of the 17 countries which met in Atlantic City, USA in June 1944 to prepare the agenda for the Bretton Woods conference, and one of the 44 countries which signed the final Agreement that established the Bank. In fact, the name "International Bank for Reconstruction and Development" [IBRD] was first suggested by India to the drafting committee. The Indian delegation was led by Sir Jeremy Raisman, Finance Member of the Government of India and included Sir C. D. Deshmukh (Governor of the Reserve Bank of India, later to become India's Finance Minister), Sir Theodore Gregory (the first Economic Advisor to the Government of India), Sir R.K. Shanmukhan Chetty (later independent India's first Finance Minister), Mr. A.D. Shroff (one of the architects of the Bombay Plan) and Mr B.K. Madan (later India's Executive Director in IMF).The Bank lending to India started in 1949, when the first loan of $34 million was approved for the Indian Railways. The first decade of the Bank's lending to India (1949 - 1959) saw just about 20 loans for a total amount of $611 million. During the years 1960-69, overall lending to India from the Bank rose to $1.8 billion, about three times the level in the previous decade. Between 1970-79, there was a large increase in the absolute volume of IDA lending and the IDA share in total Bank assistance reached a high of 80% in this decade. However, in the 1980s, India's share in total IDA lending declined to 25% and was updated by the more expensive WB lending. The volume of the WB lending rose to $14.7 billion during 1980-89, almost 10 times the level of $1.5 billion in the previous decade. India's involvement with the World Bank dates back to its earliest days. India was one of the 17 countries which met in Atlantic City, USA in June 1944 to prepare the agenda for the Bretton Woods conference, and one of the 44 countries which signed the final Agreement that established the Bank. In fact, the name "International Bank for Reconstruction and Development" [IBRD] was first suggested by India to the drafting committee.

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IMPORTANT OBJECTIVES OF WORLD BANK (INDIA)

Reduce poverty. Develop an investment-environment. Increase job opportunities. Work towards sustainable economic growth. Promote socio-economic growth through investment. Strengthen governments with education. Empower the development of legal and judicial systems, business opportunities and protection of individual rights. Benefit from micro credit as well as large corporate undertakings. Combat corruption.
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Promote research and training opportunities. Provides low-interest loans, Interest-free credits Grants to include investments in education, Health, Public administration, Infrastructure, Financial and private sector development, Agriculture, Environmental and natural resource management.

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PROJECTS IN INDIA FINANCED BY WORLD BANK

SARDAR SAROVAR DAM. World Bank is the financing agency for this project. The World Bank approved a US$520.75 million IDA credit to India in a major new attack on three diseases to Combat Malaria, Kala Azar, and Polio

World Bank Approves Two Credits To India For Polio Eradication And Rajasthan District Poverty Initiatives. National Rural Livelihoods Project:- The development objective of the National Rural Livelihoods Project is to establish efficient and effective institutional platforms of the rural poor that enables them to increase household income through sustainable livelihood enhancements and improved access to financial and selected public services. PMGSY Rural Roads Project:-The objective of the Pradhan Mantri Gram Sadak Yojana (PMGSY) Second Rural Roads Project for India is to achieve broader and more sustainable access to markets and social services by the rural population in participating districts. The World Bank has supported Andhra Pradesh to upgrade its state highways. It is now helping to upgrade rail and road connectivity in Mumbai; improve state highways in Andhra Pradesh, Himachal Pradesh, Kerala, Orissa, Punjab and Uttar Pradesh. Maharashtra Agricultural Competitiveness Project:- The objective of the Maharashtra Agriculture Competitiveness Project for India is to increase the productivity, profitability, and market access of the farming community in Maharashtra. There are three components to the project.

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INTERNATIONAL MONETARY FUNDS

The International Monetary Fund was founded over 50 years ago to allow currency to be exchanged freely and easily between member countries. Today, the IMF works to help member countries ensure that they always have enough foreign exchange to continue to do business with the rest of the world. The Bretton Woods system of monetary management established the rules for commercial and financial relations among the worlds Industrial states. Independent nation-states. Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for united Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944.The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed valueplus or minus one percentin terms of gold and the ability of the IMF to bridge temporary imbalances of payments.Membership in the World Bank requires membership in the IMF, and they are both specialized agencies of the United Nations. The World Bank was given domain over long-term financing for nations in need, while the IMF's mission was to monitor exchange rates, provide short-term financing for balance of payments adjustments, provide a forum for discussion about international monetary concerns, and give technical assistance to member countries.

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PURPOSE OF IMF
The IMF purposes are outlined in Article I of the IMF Articles of Agreement. They are the promotion of international monetary cooperation. The expansion and balanced growth of international trade. Exchange rate stability. The elimination of restrictions on the international flow of capital. The orderly adjustment of balance of payment (BOP) imbalances. Promote international monetary cooperation ,exchange stability, and orderly exchange arrangements Foster economic growth and high levels of employment Temporary financial assistance to countries to help the balance of payments adjustments

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HOW IS IMF FINANCED?

The IMF is financed by member countries who contribute funds on joining or from existing members IMF stands at $300 billion financed from its 185 member countries The U.S deposited the largest amount. Quota subscriptions generate most of the IMF's financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative size in the world economy. A member's quota determines its maximum financial commitment to the IMF and its voting power, and has a bearing on its access to IMF financing. A new country is assigned an initial quota in the same range as the quotas of existing members

OPERATIONS OF IMF.
Monitoring economic and financial developments and policies, in member countries and at the global level, giving policy advice to its members based on its more than fifty years of experience. Lending to member countries with balance of payments problems, supporting adjustment and reform policies aimed at correcting the underlying problems. Providing the governments and central banks of its member countries with technical assistance and training in its areas of expertise. IMF looks at the performance of the economy as a whole (macroeconomic performance) Focuses also on the financial sector policies Ex: regulation and supervision of banks and other financial institutions. Pays attention to structural policies that affect macroeconomic performance .Ex: labor market policies (affect employment and wage behavior)

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FUNCTIONS OF IMF
IMF describes itself as an organization of 185 countries ,working to foster global monetary cooperation , secure financial stability ,facilitate international trade promote high employment and sustainable economic growth and reduce poverty. The primary mission of IMF is to provide financial assistance to countries that experience serious financial difficulties.

TECHNICAL ASSISTANCE

IMF offers advices to the member countries regarding the formulation and implementation of economic management. The fund provided the training course on financial analysis and policy, fiscal policy etc.It provides training on balance of payments methodology, public finance, central banking services, organization and administration of central bank. It sends teams of experts to various developing countries in order to provide training, conducting surveys, formulation of monetary policy etc.

IMF LENDING
A core responsibility of the IMF is to provide loans to countries experiencing balance of payments problems. The financial assistance enables countries to rebuild there international reserves, continue paying for imports and restore conditions for strong economic growth. Unlike development banks, the IMF doesnt lend for specific projects. An IMF loan is usually provided under an arrangement which stipulates the specific policies and measures a country has agreed to implement to resolve its balance of payments problems. Once an arrangement is approved by the board, the loan is released in phased installments as the program is carried out.

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IMF AND INDIA

India is among one of the developing economies that effectively employed the various Fund programmes to fortify its fiscal structure. Through productive engagement with the IMF, India formulated a consistent approach to expand domestic and global assistance for economic reforms. Whenever India underwent balance of payments crises, it sought the help of IMF and in turn the internationally recognized reserve willingly helped India to overcome the difficulties. Recently, India purchased IMF gold to lend money to developing countries. This proves that the fiscal reforms set in motion by the previous finance ministers have finally started gaining momentum, transforming India from fiscal borrower to major lender. The speed at which the gold was purchased by India on September 18, 2009 astonished the market observers, who later considered it as a smart move towards shoring its bullion funds and steadily trying to stake on the US dollar. Some analysts predict that India is purchasing gold to move forward for higher voting share in the IMF. India is also seeking for a considerable say in global fiscal affairs and greater account in the IMF. The history of India's engagement with IMF illustrates that with premeditated planning it is possible to alleviate a macroeconomic calamity and sustain the rights of reform package without negotiating on democratic organizations or international policy autonomy. The International Monetary Fund (IMF) predicted 8% expansion during 2010-11. However, the growth will be affected by high inflation and increasing monetary deficit in the concerned fiscal year. India's long term economic prospects will continue to remain sturdy in 2010-11 followed by lower growth rate at 7.7% for the FY 2011-12. Other than high inflation and rising financial deficit, the major areas of concern are rise in asset cost and the prospects of an unanticipated slowdown in the influx of foreign investment in India caused due by the chaos in worldwide financial markets.

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WORLD TRADE ORGANIZATION

THE GENERAL AGREEMENT ON TARIFF AND TRADE (GATT)

The WTO's predecessor, the GATT, was established on a provisional basis after the Second World War in the wake of other new multilateral institutions dedicated to international economic cooperation - notably the "Bretton Woods" institutions now known as the World Bank and the International Monetary Fund. The original 23 GATT countries were among over 50 which agreed a draft Charter for an International Trade Organization (ITO) - a new specialized agency of the United Nations. The Charter was intended to provide not only world trade disciplines but also contained rules relating to employment, commodity agreements, restrictive business practices, international investment and services. In an effort to give an early boost to trade liberalization after the Second World War - and to begin to correct the large overhang of protectionist measures which remained in place from the early 1930s - tariff negotiations were opened among the 23 founding GATT "contracting parties" in 1946.

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This first round of negotiations resulted in 45,000 tariff concessions affecting $10 billion - or about one-fifth - of world trade. It was also agreed that the value of these concessions should be protected by early - and largely "provisional" acceptance of some of the trade rules in the draft ITO Charter. The tariff concessions and rules together became known as the General Agreement on Tariffs and Trade and entered into force in January 1948.Well before GATT's 40th anniversary, its members concluded that the GATT system was straining to adapt to a new globalizing world economy. In response to the problems identified in the 1982 Ministerial Declaration (structural deficiencies, spill-over impacts of certain countries' policies on world trade GATT could not manage etc.), the eighth GATT round known as the Uruguay Round was launched in September 1986, in Punta del Este, Uruguay. It was the biggest negotiating mandate on trade ever agreed: the talks were going to extend the trading system into several new areas, notably trade in services and intellectual property, and to reform trade in the sensitive sectors of agriculture and textiles; all the original GATT articles were up for review. The Final Act concluding the Uruguay Round and officially establishing the WTO regime was signed April 15, 1994, during the ministerial meeting at Marrakesh, Morocco, and hence is known as the Marrakesh Agreement.

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HIGHLIGHTS OF URUGUAY ROUND

The WTO replaced GATT and started functioning from 1995. The eight round of negotiation was held at Uruguay in 1986.the negotiation continued for eight years. The final act was signed in1994 and this paved the way for setting up of WTO. The major highlights of the Uruguay round of negotiations are as follows Agreement on agriculture: - It deals with three aspects of agriculture namely trade in agricultural goods, agricultural policies which influences trade and patenting of seeds, plants and micro organisms. For the first time, trade in agricultural goods has been included. The member countries have to substitute the non tariff barriers like quotas by tariff measures. They have to reduced by developed countries over a period of six years while for developing countries, The limit was fixed at ten years. The least developed countries need not reduced tariffs. It also specifies the reduction in agricultural subsidies over a period of time. Agreement on trade in textile and clothing: - the member nations have to phase out import quotas on textiles and clothing over a period of ten years, by the end of transition period on 1st January 2005. These restrictions have been imposed by countries under an agreement called multi fiber agreement. This change will help the developing countries to realize their full export potential. Agreement on trade related investment measures: - under this, the agreement has provided for the removal of restriction on foreign investments such restrictions are generally found in developing countries. The restrictions may be related to equity ownership, export commitment etc.this agreement has specified that these restrictions have to be removed to promote international trade. Agreement on trade related intellectual property rights (TRIPS):An intellectual property right refers to patents copyrights etc. In the earlier years certain items like food, machines, drugs and chemical products were given only processed patents. At present they are given product patents also. Protection will be given to patents for 20 years and for copyrights it has been increased to 50 years. Patenting of seed plant is also covered under this provision. Nearly 9 types of intellectual property are covered by WTO at present
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 Agreement on services: - services like banking , insurance , shipping etc are included in this round of negotiations. Many countries have restrictions on entry of foreign sector in finance, media, transport etc. to promote international trade , it was argued that services should be free from barriers. The service sector is also expanding at a rapid rate in many countries and it is advisable to have free trade and competition. The general agreement on trade in service provides a detailed framework for the working of the service sector in liberalized conditions. Dispute settlement body: - this body has been constituted under wto to solve disputes without any delay . a time limit of 18 maonths has been given to this body to settle disputes between member coubtries . the decision of the body are final and binding on the parties concerned Along with these issues agreement related to anti dumping measures , subsidies ,import licensing etc have also been arrived at.thus , wto has given a new orientation to international trade.

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WHY WORLD TRADE ORGANIZATION?

The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments.Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986 1994).
REASONS FOR WTO FORMATION

To arrange the implementation, administration and operations of multilateral (involving three or more participants) and Plurilateral trade agreements (power which shared between different countries) To arrange the forum for deliberations for the member nations in regard to their multilateral trade relations in issues deal with under the agreements To provide a framework for implementing of the results arising out of the deliberations (long and care full agreements/consideration) which taken place at ministerial conference level To manage the created understanding on rules and procedure governing the settlement of disputes To manage effectively and efficiency the trade policy review mechanism (TRIM) To create more together relationship with all nations in respect of global economic policy-making, it would cooperate with the IMF and the world bank & its affiliated Organisations.

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FUNCTIONS OF WORLD TRADE ORGANIZATION

Among the various functions of the WTO, these are regarded by analysts as the most important: Implementing WTO agreements & administering the international trade. Cooperating with IMF & World Bank & its associates for establishing coordination in Global Trade Policy-Making. Settling trade related disputes among member nations with the help of its Dispute Settlement Reviewing trade related economic policies of member countries with help of its Trade Policy Review Body (TPRB). Providing technical assistance & guidance related to management of foreign trade & fiscal policy to its member nations. Acting as forum for trade liberalization.

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PRINCIPLES OF WTO

The basic principles of the WTO (according to the WTO): Trade Without Discrimination 1. Most-favoured-nation (MFN): treating other people equally:- Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members. 2. National treatment: Treating foreigners and locals equally:-Imported and locally-produced goods should be treated equally at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. Freer trade: gradually, through negotiation Lowering trade barriers is one of the most obvious means of encouraging trade. The barriers concerned include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively Predictability: through binding and transparency Sometimes, promising not to raise a trade barrier can be as important as lowering one, because the promise gives businesses a clearer view of their future opportunities. With stability and predictability, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition choice and lower prices. The multilateral trading system is an attempt by governments to make the business environment stable and predictable. Promoting fair competition The WTO is sometimes described as a free trade institution, but that is not entirely accurate. The system does allow tariffs and, in limited circumstances, other forms of protection. More accurately, it is a system of rules dedicated to open, fair and undistorted competition.
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 Encouraging development and economic reform. The WTO system contributes to development. On the other hand, developing countries need flexibility in the time they take to implement the systems agreements. And the agreements themselves inherit the earlier provisions of GATT that allow for special assistance and trade concessions for developing countries.
OBJECTIVES OF WTO

The primary aim of WTO is to implement the new world trade agreement. To promote multilateral trade. To promote free trade by abolishing tariff & non-tariff barriers. To enhance competitiveness among all trading partners so as to benefit consumers. To increase the level of production & productivity with a view to increase the level of employment in the world. To expand & utilise world resources in the most optimum manner. To improve the level of living for the global population & speed up economic development of the member nations. To take special steps for the development of poorest nations. WTO is an international trade organisation having set of rules & principles, mutually designed & agreed upon to promote international trade in general & reduction of tariffs barriers & removal of import restrictions in particular
India joined the World Bank in 1944 and is among its oldest members. It is the World Bank's largest single borrower, with cumulative lending of more than US$47 billion as of June 2000 in market-based loans from the International Bank for Reconstruction and Development (IBRD) and development credits from the International Development Association (IDA), the World Bank affiliate that provides interestfree loans to economies with low per-capita incomes. From 1949 to June 2000, the Bank has extended about 215 loans and 292 development credits to India, totaling approximately US$26.2 billion from the IBRD and US$27.2 billion equivalent from IDA. As of

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June 30, 2000, the Bank's lending portfolio of ongoing projects for India comprised 79 projects amounting to about US$11.5 billion. India is also among the Bank's top annual borrowers. In FY00, lending commitments reached about US$1.8 billion (US$866.5 million equivalent in IDA credits and US$934.3 million in IBRD loans) for eleven projects. The sectoral allocation of the existing portfolio is concentrated in rural development (23 percent of total commitments), education and health (23 percent combined) and infrastructure, including energy (20 percent). Focusing on Reforming States As the reform agenda has shifted to the states over the past few years, the Bank Group has reoriented its strategy to focus mainly on those states that have chosen to embark on a comprehensive program of economic reforms. These include some of the poorer states with the worst social indicators. State-level operations are not new to the Bank in India. In the past, however, selection of state projects was done largely on project and sector grounds rather than on the basis of the overall policy stance of the state itself. The Bank is now developing comprehensive assistance programs for reforming states. All Bank loans to the states will continue to be channeled through the central government, and then on-lent to the states. In support of this strategy, the Bank is undertaking fiscal studies of the major states in collaboration with local research institutions. Andhra Pradesh (AP) was the first state to benefit from this new type of state-focused lending. A loan of US$543.2 million loan was approved in June 1998 for the multisectoral Andhra Pradesh Economic Restructuring Project, which provides urgently needed resources to the state for health, education, nutrition, rural development, and civil service reforms, while sup-porting ongoing reforms intended to redirect spending towards priority areas by restructuring the state's public expenditure. This was followed a few months later by a US$1 billion commitment for a series of loans for restructuring AP's power sector. In FY00 Uttar Pradesh became the second state to receive state-level Bank assistance, through a multisectoral package aimed at supporting its economic reform program. Operations supporting primary education and health systems development as well as fiscal, public sector and power sector reform, have provided urgently needed funds, especially for the improvement of social services for the poor, while helping the state put its finances on a sustainable path. The re-forms encompass the civil service, tax reform and privatization. Further operations are envisaged to support highway development as well as reforms in the water sector. Discussions are underway with other states for similar assistance.

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SAARC
The South Asian Association for Regional Cooperation (SAARC) was established when its Charter was formally adopted on 8 December 1985 by the Heads of State or Government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and SriLanka. Established in Kathmandu on 16 January 1987, the SAARC Secretariat is responsible to coordinate and monitor the implementation of SAARC activities, service the meetings of the Association and serve as the channel of communication between SAARC and other international organizations.

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OBJECTIVE
The objectives of the association as defined in the charter are: To promote the welfare of the people of south Asia and to improve their quality of life. To accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potential. To promote and strengthen collective self-reliance among the countries of south Asia. To contribute to mutual trust, understanding and appreciation of one another's problems. To promote the welfare of the people of South Asia and to improve their quality of life; To accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potential; To promote and strengthen collective self-reliance among the countries of South Asia; To contribute to mutual trust, understanding and appreciation of one another's problems; To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; To strengthen cooperation with other developing countries; To strengthen cooperation among themselves in international forums on matters of common interest; and To cooperate with international and regional organizations with similar aims and purposes.

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WHAT IT AIMS FOR?

SAARC frame work is governed by the overarching principles of 'sovereign equality, territorial integrity, political independence and noninterference in the internal affairs of other states. It aims to promote the welfare of the peoples of south Asia and to improve their quality of life through accelerated economic growth, social progress and cultural development in the region. Decisions are taken on the basis of unanimity. Bilateral and contentious issues are excluded from the deliberations of saarc. The main thrust of regional efforts has been directed towards economic integration Saarc aimed to bring stability to south Asia by enhancing regional cooperation.

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AREAS OF COOPERATION
Agriculture and Rural Development; Health and Population Activities; Women, Youth and Children; Environment and Forestry; Science and Technology and Meteorology; Human Resources Development; and Transport. Recently, high level Working Groups have also been established to strengthen cooperation in the areas of Information and Communications Technology, Biotechnology, Intellectual Property Rights, Tourism, and Energy

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ASEAN
ASEAN was preceded by an organisation called the Association of Southeast Asia, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of five countries Indonesia, Malaysia, the Philippines, Singapore, and Thailandsigned the ASEAN Declaration, more commonly known as the Bangkok Declaration. The motivations for the birth of ASEAN were so that its members governing elite could concentrate on nation building, as well as a desire for economic development; not to mention Indonesias ambition to become a regional hegemon through regional cooperation with Malaysia and Singapore

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FUNDAMENTAL PRINCIPLES
Feb. 1967 - Treaty of Amity and Cooperation (TAC) : Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations The rights of every state to lead its national existence free from external interference, subversion, and coercion Non-interference in the internal affairs of one another Settlement of differences or disputes by peaceful manner Renunciation of the threat or use of force; and Effective cooperation among themselves.

ASEAN OBJECTIVES
Enhance peace, security stability Political, security, economic, socio-cultural cooperation Preserve as nuclear weapons free zone Peace with the world, harmonious environment Single market and production base Alleviate poverty, narrow development gap Strengthen democracy, protect and promote human rights Respond to common threats Promote sustainable development Develop human resources

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