Bretton Woods Committee (BWC)’s “Strengthening the Bretton Woods Institutions (BWIs) to Meet 21st -Century Global Challenges” Report | Current Affairs | Vision IAS
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    Bretton Woods Committee (BWC)’s “Strengthening the Bretton Woods Institutions (BWIs) to Meet 21st -Century Global Challenges” Report

    Posted 17 Apr 2024

    2 min read

    • This is the first report from BWC’s Multilateral Reform Working Group (MRWG), which has been formed to address how multilateral system can be strengthened
      • BWC, created in 1983, is the non-profit organization dedicated to effective global economic and financial cooperation.

     

    • BWIs, setup in 1944 by 43 countries with an aim to help rebuild postwar economy and promote international economic cooperation, are World Bank and International Monetary Fund (IMF).

     

    • Multilateralism led by International Financial Institutions has driven high growth and globalization, benefiting global population. However, report highlights two challenges to this growth:
      • Crises in the global commons have dominated and had profoundly negative effect on the world economy, eroding gains in health, education, productivity etc.
      • Despite recognition, progress in addressing these challenges has been slow.
        • This is due to fragmentation of global economy and increase in geopolitical tensions. 

     

    • Recommendations for strengthening BWIs
      • Constitute ministerial-level Councils in BWIs to oversee issues pertaining to global commons.
      • Design instruments and institutional arrangements to finance the means to face climate challenges. 
      • Expanding climate-linked financial instruments. 
      • Establish permanent mechanism to conduct systematic review of progress of global financing and implementation plans.

     

    Global Commons

    • Global commons are those parts of planet that fall outside national jurisdictions and to which all nations have access. 
    • International law identifies four global commons, namely the High Seas, the Atmosphere, the Antarctica and the Outer Space. 
    • Tags :
    • World Bank
    • IMF
    • Global Commons
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