General Agreement on Tariffs and Trade (GATT)
Objectives:
1. To reduce tariffs and other trade barriers.
 This objective aligns with the GATT's focus on trade liberalization, as
seen in various negotiation rounds like the Tokyo Round and the
Uruguay Round.
2. To eliminate quantitative restrictions on imports and exports.
 The GATT aimed to eliminate not only tariffs but also quantitative
restrictions, promoting a more open and free international trading
system.
3. To establish a framework for international trade rules.
 GATT played a crucial role in creating a structured framework for
governing international trade, fostering cooperation among member
nations.
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Principles:
Most-favored-nation (MFN): All GATT members must be treated
equally.
 The MFN principle ensures equal treatment among member
countries, fostering fair and non-discriminatory trade practices.
National treatment: Imported goods must be treated the same as
domestically produced goods.
 This principle underlines the importance of treating foreign and
domestic goods equally, promoting a level playing field.
Non-discrimination: GATT members must not discriminate against
each other's goods and services.
 Non-discrimination is a core principle that prevents unfair treatment
among member nations in the realm of goods and services.
Transparency: GATT members must publish their trade laws and
regulations.
 Transparency is crucial for creating a predictable and stable trade
environment, ensuring that nations are aware of each other's trade
laws and regulations.
5. Gradualism: Trade liberalization should be implemented gradually to
avoid economic disruption.
 The principle of gradualism emphasizes a careful and phased
approach to trade liberalization to prevent sudden economic shocks.
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History:
The GATT was established in 1947 as a provisional agreement.
 GATT's provisional establishment laid the groundwork for subsequent
negotiations and agreements aimed at reducing global trade barriers.
It was finalized in 1948 and entered into force in 1949.
 The finalization and enforcement marked the official beginning of
GATT, reflecting the commitment of member nations to the principles
of free trade.
The GATT was renegotiated several times over the years, resulting in
the Tokyo Round (1973-1979) and the Uruguay Round (1986-1994).
 These rounds of negotiations showcased the adaptability of GATT to
changing global economic conditions and the commitment to further
reducing trade barriers.
The Uruguay Round resulted in the establishment of the World Trade
Organization (WTO) in 1995.
 The transition to the WTO marked a significant evolution in the global
trade governance structure.
Achievements:
1. The GATT has helped to reduce tariffs and other trade barriers
significantly.
 GATT's success in reducing tariffs has played a pivotal role in
promoting global economic growth.
2. It has also helped to establish a framework for international trade
rules.
 GATT's contribution goes beyond tariff reduction, extending to the
establishment of rules that govern international trade.
3. The GATT has contributed to global economic growth and prosperity.
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GATT's overall impact has been positive, contributing to the
prosperity of member nations and the global economy.
Challenges:
1. The GATT has been criticized for being too focused on trade in goods
and not enough on trade in services.
 Critics argue that GATT's emphasis on goods may have overlooked
the importance of services in the modern global economy.
2. It has also been criticized for being too slow to adapt to changing
economic conditions.
 Some contend that GATT faced challenges in keeping pace with
rapidly evolving economic dynamics.
Implications for Bangladesh:
1. The GATT has helped to boost Bangladesh's exports by reducing tariffs
and other trade barriers in its major trading partners.
 Bangladesh's experience reflects the positive impact of GATT on
export-oriented economies by facilitating market access.
2. It has also helped to attract foreign investment to Bangladesh.
 GATT's influence extends to fostering an environment conducive to
foreign investment, contributing to Bangladesh's economic
development.
3. The GATT has helped to make Bangladesh's economy more
competitive.
 By reducing trade barriers, GATT has played a role in enhancing
Bangladesh's economic competitiveness on the global stage.
The main objectives of the GATT are:
1. To raise standards of living:
2. To achieve full employment:
3. To develop the world's resources
4. To expand production and exchange of goods
5. To promote economic development
Most-favored-nation (MFN): All GATT members must be treated equally. This means
that if a country grants a trade concession to one GATT member, it must also grant that
concession to all other GATT members.
National treatment: Imported goods must be treated the same as domestically
produced goods. This means that GATT members cannot discriminate against imported
goods in terms of taxes, regulations, or other internal policies.
Non-discrimination: GATT members must not discriminate against each other's goods
and services. This means that they cannot impose tariffs or other trade barriers on
goods and services from other GATT members that they do not impose on their own
goods and services.
Transparency: GATT members must publish their trade laws and regulations. This
helps to ensure that all GATT members know the rules and that there are no hidden
barriers to trade.
Gradualism: Trade liberalization should be implemented gradually to avoid economic
disruption. This means that GATT members are not required to eliminate all trade
barriers immediately, but they must make progress towards doing so over time.
History of the GATT in 5 bullet points:
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1947: The GATT is signed by 23 countries after World War II.
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1948: The GATT enters into force.
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1949-1994: The GATT is renegotiated several times, resulting in eight rounds of
negotiations.
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1995: The GATT is absorbed into the World Trade Organization (WTO).
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2023: The WTO has 164 members and accounts for over 98% of global trade.
5 Achievements of the GATT:
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Reduced tariffs and other trade barriers
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Eliminated quantitative restrictions on imports and exports
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Established a framework for international trade rules
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Promoted economic growth and prosperity

Helped to attract foreign investment
The challenges facing the GATT:
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Failure to address trade in services: The GATT was primarily focused on trade in
goods, and did not adequately address trade in services, which have become
increasingly important in the global economy.
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Lack of enforcement mechanisms: The GATT had no effective enforcement
mechanisms to ensure that members complied with its rules. This led to some members
circumventing the rules, and undermined the credibility of the GATT.

Protectionism from developed countries: Developed countries often maintained
protectionist measures, such as high tariffs and subsidies, on goods from developing
countries. This made it difficult for developing countries to compete in the global market.
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Agricultural subsidies: Developed countries heavily subsidized their agricultural
sectors, which distorted global agricultural markets and harmed developing country
farmers.
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Special and differential treatment for developing countries: The GATT did not provide
enough special and differential treatment for developing countries, which are more
vulnerable to the negative effects of trade liberalization.
Implications of the GATT for Bangladesh:
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Increased exports: The GATT has helped to reduce tariffs and other trade barriers in
Bangladesh's major trading partners, which has boosted Bangladesh's exports.

Attracted foreign investment: The GATT has helped to make Bangladesh's economy
more attractive to foreign investors.
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Made Bangladesh's economy more competitive: The GATT has helped to make
Bangladesh's economy more competitive by reducing the cost of imported goods and
services.
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Created jobs: The GATT has helped to create jobs in Bangladesh by boosting exports
and attracting foreign investment.
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Improved living standards: The GATT has helped to improve living standards in
Bangladesh by making goods and services more affordable for consumers.
Overview of the World Bank:
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1. Introduction to the World Bank:
Definition and purpose of the World Bank.
Historical background and establishment.
Objectives and mission.
2. Organizational Structure:
Structure of the World Bank Group (IBRD, IDA, IFC, MIGA, and ICSID).
Roles and functions of each component.
3. Governance and Decision-Making:
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Voting power and representation of member countries.
Decision-making processes within the World Bank.
4. Financial Operations:
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Sources of funds for the World Bank.
How funds are allocated and distributed.
Financial instruments used for development projects.
5. Development Projects:
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Types of projects financed by the World Bank.
Project cycle: identification, preparation, appraisal, implementation, and evaluation.
6. Impact and Criticisms:
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Positive impacts of World Bank projects.
Criticisms and controversies surrounding World Bank interventions.
7. Partnerships and Collaborations:
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Collaboration with other international organizations.
Partnerships with the private sector.
8. Focus Areas:
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Priority areas and sectors for World Bank interventions (e.g., poverty reduction, infrastructure
development).
What is the World Bank?
The World Bank is an international organization dedicated to providing
financing, advice, and research to developing nations to aid their economic
advancement.
Primary objectives:
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Reduce poverty and promote shared prosperity.
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Support sustainable development.
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Build resilience to climate change and other shocks.
How does it differ from other international financial institutions?
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The World Bank's primary focus is on long-term development, while other IFIs,
such as the International Monetary Fund (IMF), focus on short-term
macroeconomic stability.
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The World Bank provides a wider range of financial products, including loans,
grants, and technical assistance, while the IMF primarily provides short-term
loans.
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The World Bank is owned by its member governments, while the IMF is
owned by its member countries' central banks.
Organizational structure of the World Bank Group
The World Bank Group is made up of five organizations:
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The World Bank (IBRD and IDA)
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The International Finance Corporation (IFC)
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The Multilateral Investment Guarantee Agency (MIGA)
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The International Centre for Settlement of Investment Disputes (ICSID)
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The Independent Evaluation Group (IEG)
Roles of each component:
The World Bank (IBRD and IDA)
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Provides loans and grants to low- and middle-income countries for development
projects and programs.
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IBRD loans are made at market interest rates, while IDA grants and loans are provided
at concessional interest rates or no interest at all.
The International Finance Corporation (IFC)
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Provides financing and investment services to the private sector in developing
countries.
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IFC investments promote economic growth, job creation, and sustainable development.
The Multilateral Investment Guarantee Agency (MIGA)
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Insures foreign investors against political and non-commercial risks, such as currency
inconvertibility, expropriation, and war and civil disturbance.
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MIGA's guarantees help to promote foreign investment in developing countries.
The International Centre for Settlement of Investment Disputes (ICSID)
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Provides facilities for the settlement of investment disputes between states and foreign
investors.
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ICSID's services help to promote foreign investment and economic development.
The Independent Evaluation Group (IEG)
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Evaluates the World Bank Group's programs and projects to ensure that they are
effective and efficient.
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IEG's evaluations help to improve the quality of the World Bank Group's work.
In addition to these five organizations, the World Bank Group also includes the
following units:
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The Office of the President
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The Board of Governors
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The Executive Directors
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The Vice Presidencies
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The Global Practices
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The Corporate Services
Roles of the other units:
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The Office of the President: Provides overall leadership and direction to the World Bank
Group.
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The Board of Governors: The ultimate policymakers of the World Bank Group.
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The Executive Directors: Represent the member countries of the World Bank Group and
make decisions on its behalf.
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The Vice Presidencies: Responsible for the World Bank Group's regional and global
operations.
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The Global Practices: Provide technical expertise and advice on development issues.
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The Corporate Services: Provide administrative and support services to the World Bank
Group.
Decision-making processes within the World Bank:
The World Bank's decision-making process is based on a system of consensus, with
voting used only as a last resort. The Bank's Board of Governors, which is made up of
representatives from all member countries, is the highest decision-making body.
However, the Board of Governors meets only once a year, so most decisions are made
by the Board of Executive Directors, which is made up of 25 directors elected by the
Board of Governors.
Distribution of voting power among member countries:
Voting power in the World Bank is determined by a quota system, which is based on a
member country's economic size and openness. The United States has the largest
voting power, with 16.46% of the total. Other major shareholders include Japan
(7.54%), China (6.16%), Germany (5.38%), and France (4.59%).
Bullet point direct answers:
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Decision-making at the World Bank is based on a system of consensus, with voting
used only as a last resort.
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The Board of Executive Directors, which is made up of 25 directors elected by the
Board of Governors, makes most decisions.
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Voting power in the World Bank is determined by a quota system, which is based on a
member country's economic size and openness.
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The United States has the largest voting power, with 16.46% of the total.
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Other major shareholders include Japan (7.54%), China (6.16%), Germany
(5.38%), and France (4.59%).
Sources of funds for the World Bank:
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International Bank for Reconstruction and Development (IBRD):
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
Allocation of funds for development projects:
The World Bank allocates funds for development projects based on the following
criteria:
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Poverty reduction: The Bank prioritizes projects that will help to reduce poverty and
improve the lives of the poor.
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Economic growth: The Bank also supports projects that promote economic growth and
job creation.
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Sustainability: The Bank funds projects that are environmentally and socially
sustainable.
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Country ownership: The Bank works closely with member countries to identify and
design projects that meet their development needs and priorities.
Process for approving development projects:
The World Bank follows a rigorous process for approving development projects.
This process includes the following steps:
1. Country requests assistance: The Bank receives a request for assistance from a
member country.
2. Needs assessment: The Bank conducts a needs assessment to identify the country's
development priorities.
3. Project identification and design: The Bank works with the country to identify and design
projects that meet its development needs.
4. Project appraisal: The Bank appraises the project to ensure that it is
feasible, sustainable, and affordable.
5. Board approval: The Bank's Board of Directors approves the project.
6. Implementation: The project is implemented by the country government, with the Bank's
support.
7. Monitoring and evaluation: The Bank monitors and evaluates the project to ensure that
it is achieving its objectives
Positive impacts of World Bank projects on economic development:
Infrastructure development:
Education and healthcare:
Poverty reduction
Private sector development
Trade facilitation
Common criticisms and controversies surrounding World Bank interventions:
Environmental impact
Social impact
Lack of transparency and accountability
Conditionality
Relationship between World Bank and GATT:
Historical Context:
1. Post-World War II Era: Both the World Bank and GATT were established in the aftermath of
World War II to foster international economic cooperation and development.
Collaboration and Complementary Roles:
2. Development and Trade Linkages: Discuss how the World Bank, with its focus on
development projects, and GATT, with its emphasis on reducing trade barriers, worked together
to enhance global economic stability and growth.
3. Infrastructure Projects: Explore instances where the World Bank funded infrastructure projects
that aligned with GATT goals by improving transportation and communication networks,
facilitating international trade.
Policy Coordination:
4. Trade Liberalization and Economic Development: Explain how GATT's efforts to reduce tariffs
and trade barriers complemented the World Bank's mission to promote economic development
by fostering a more open and interconnected global economy.
Challenges and Adjustments:
5. Adjustments to Changing Global Dynamics: Analyze how the institutions adapted to changes
in the global economic landscape, such as the rise of regional trade agreements and the
evolution of the World Trade Organization (WTO) from GATT.
Historical Context of the Establishment of the World Bank and GATT
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The World Bank and GATT were both established in the aftermath of World War II, in
response to the economic devastation caused by the war.
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The Bretton Woods Conference, held in 1944, was a meeting of 44 countries to discuss
the creation of a new international economic system.
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The conference resulted in the establishment of the World Bank and GATT, as well as
the International Monetary Fund (IMF).
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The World Bank was created to provide loans to developing countries for reconstruction
and development projects.
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GATT was created to liberalize international trade and reduce tariffs and other trade
barriers.
How did their formation contribute to post-World War II international economic
governance?
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The World Bank and GATT played a key role in promoting post-war economic recovery
and growth.
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The World Bank provided much-needed financing for reconstruction and development
projects in war-torn countries.
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GATT helped to reduce trade barriers and expand international trade.
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Both institutions helped to create a more stable and predictable international economic
environment.
Specific contributions of the World Bank and GATT to post-World War II international
economic governance:
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The World Bank helped to finance the reconstruction of Europe and Japan after the war.
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The World Bank also provided loans to developing countries for infrastructure
projects, such as roads, bridges, and irrigation systems.
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GATT helped to reduce tariffs and other trade barriers, which led to an expansion of
international trade.
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GATT also established a framework for resolving trade disputes between countries.
Conclusion
The World Bank and GATT played a key role in promoting post-war economic recovery
and growth. They helped to create a more stable and predictable international economic
environment, which contributed to global economic prosperity.
Bullet point bold direct answers:
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Historical context: Established in the aftermath of World War II in response to the
economic devastation caused by the war.
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Contribution to post-war economic governance: World Bank provided loans for
reconstruction and development projects, GATT liberalized international trade and
reduced tariffs.
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Specific contributions: World Bank financed reconstruction of Europe and
Japan, provided loans to developing countries for infrastructure projects; GATT reduced
tariffs and other trade barriers, established framework for resolving trade disputes.
Here are some specific examples of how the World Bank and GATT collaborated:
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In 1964, the World Bank and GATT jointly launched the International Trade Centre (ITC)
to help developing countries expand their exports. The ITC provides trade information
and advisory services to developing countries.
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In 1968, the World Bank and GATT established the Generalized System of Preferences
(GSP), which is a system of preferential tariffs for developing countries. GSP allows
developing countries to export some of their products to developed countries at lower
tariff rates.
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In the 1970s, the World Bank and GATT worked together to promote the Uruguay
Round of trade negotiations, which resulted in the establishment of the World Trade
Organization (WTO) in 1995. The WTO is the successor to GATT and is responsible for
overseeing the global trading system.
The World Bank strategically aligns with the General Agreement on Tariffs and Trade
(GATT) to enhance global trade through targeted infrastructure funding. Key areas of
collaboration include:
1. Trade Corridor Financing:
 Example: The World Bank funded the Greater Mekong Subregion Economic
Corridor, boosting trade by 40% among six Southeast Asian countries.
2. Trade Facilitation Support:
 Example: The World Bank financed the Automated Customs Clearance System in
Bangladesh, reducing customs clearance time by 50%.
3. Transport Infrastructure Investment:
 Example: Financing the Padma Bridge in Bangladesh, the World Bank expects a
25% increase in trade through improved transport infrastructure.
4. Energy Connectivity Promotion:
 Example: The World Bank supported the Central Asia-South Asia Power
Transmission Project, connecting electricity grids across five countries.
Specific World Bank Projects:
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Panama Canal Expansion: Doubled capacity, reducing shipping times between the
Atlantic and Pacific Oceans by 20%.
Mombasa-Nairobi Standard Gauge Railway: Reduced transport time between cities by
60%.
Baku-Tbilisi-Ceyhan Pipeline: Reduced tanker traffic through the Bosporus Strait by 50%.