Module No.

4:

Organizations
Supporting International
Business
1. IMF (International Monetary Fund)

Meaning:
The IMF is an international organization headquartered in Washington, D.C.,
consisting of 190 countries. It was conceived at the Bretton Woods conference in
1944. Its primary purpose is to ensure the stability of the international monetary
system—the system of exchange rates and international payments that enables
countries (and their citizens) to transact with each other. It aims to prevent
crises in the system by encouraging countries to adopt sound economic policies.
 Objectives OF IMF:
◦ Promote International Monetary Cooperation: To provide the machinery for consultation and collaboration on international monetary
problems. Explanation: Create a permanent forum for member countries to discuss and coordinate actions related to exchange rates, balance
of payments, and global financial stability.
◦ Facilitate Balanced Growth of International Trade: To contribute to the promotion and maintenance of high levels of employment and real
income and the development of productive resources. Explanation: Stable monetary conditions and exchange rates are seen as essential
prerequisites for predictable and expanding international trade, which drives economic growth and improves living standards.
◦ Promote Exchange Rate Stability: To maintain orderly exchange arrangements among members and avoid competitive exchange
depreciation. Explanation: Prevent countries from manipulating their currency values solely to gain an unfair trade advantage, which can
destabilize the global economy. Promote predictable exchange rates.
◦ Assist in Establishing a Multilateral System of Payments: To help eliminate foreign exchange restrictions that hamper the growth of world
trade. Explanation: Encourage countries to remove controls on converting their currency for trade-related transactions, making international
payments smoother and trade easier.
◦ Provide Resources to Members Experiencing Balance of Payments Difficulties: To make the general resources of the Fund temporarily
available to members under adequate safeguards, providing them with the opportunity to correct maladjustments in their balance of
payments without resorting to measures destructive of national or international prosperity. Explanation: Act as a lender of last resort for
countries facing temporary shortages of foreign currency needed to pay for imports or service debt, giving them breathing room to
implement corrective economic policies.
Functions of IMF
Surveillance: Monitoring the economic and financial policies of its member countries and the global
economy. Explanation: The IMF regularly assesses members' economic health, identifies potential risks to stability,
and advises on necessary policy adjustments (e.g., through Article IV consultations).
Financial Assistance (Lending): Providing loans to member countries experiencing actual or potential balance of
payments problems. Explanation: These loans are conditional on the borrowing country implementing specific
economic reforms (conditionality) designed to address the root causes of their difficulties.
Technical Assistance & Training: Offering expertise and training to help member countries design and implement
effective economic policies. Explanation: This includes advice on fiscal policy, monetary and exchange rate policy,
banking supervision, statistics, and legal frameworks.
Data and Research: Collecting, analyzing, and disseminating economic data and research on global and national
economies. Explanation: Publications like the World Economic Outlook (WEO) and Global Financial Stability Report
(GFSR) provide crucial analysis for policymakers and markets.
Forum for Cooperation: Serving as a platform for dialogue and coordination among member states on international
monetary and financial issues. Explanation: Facilitates discussions and potential collective action on global economic
challenges.
2. WTO (World Trade
Organization)
Meaning:
The WTO is the only global international organization dealing with the rules of
trade between nations. Established in 1995, it succeeded the General
Agreement on Tariffs and Trade (GATT). At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading nations and ratified in
their parliaments. The goal is to ensure that trade flows as smoothly,
predictably, and freely as possible.
 Objectives OF WTO:
Implement and Administer Trade Agreements: Oversee the implementation, administration, and operation of the
covered trade agreements (like GATT, GATS, TRIPS). Explanation: Ensure that the complex rules negotiated by members
are actually put into practice and function effectively.
Act as a Forum for Trade Negotiations: Provide a platform for member governments to negotiate further trade
liberalization and new trade rules. Explanation: Continue the process started under GATT of reducing trade barriers
through multilateral negotiations (e.g., the Doha Development Agenda, though stalled).
Handle Trade Disputes: Administer the Dispute Settlement Understanding (DSU) to resolve trade disputes between
member governments. Explanation: Provide a structured and rules-based mechanism for resolving conflicts over trade
practices, preventing unilateral actions and trade wars.
Provide Technical Assistance to Developing Countries: Help developing countries build trade capacity, develop trade
infrastructure, and effectively participate in the multilateral trading system. Explanation: Recognize the special needs of
developing economies and assist them in benefiting from trade liberalization.
Ensure Transparency of National Trade Policies: Require members to notify the WTO and fellow members about their
trade policies and practices. Explanation: Increase predictability and understanding of the trade rules and regulations
applied by different countries.
Functions OF WTO:

Administering Trade Agreements: Managing the day-to-day operation of the various WTO
agreements. Explanation: This involves committees, councils, and working groups monitoring adherence to the
rules.
Acting as a Forum for Negotiations: Hosting ongoing negotiations on various trade topics, aiming to adapt rules to
the changing global economy. Explanation: This includes ministerial conferences and regular meetings of WTO
bodies.
Settling Trade Disputes: Operating the dispute settlement system, including panels and the (currently non-
functional) Appellate Body, to issue rulings on trade disputes. Explanation: This is a core function, providing legal
certainty and enforcement power to WTO rules.
Monitoring National Trade Policies (Trade Policy Review Mechanism): Regularly reviewing the trade policies of
member governments to ensure transparency and compliance. Explanation: Provides peer review and encourages
adherence to WTO commitments.
Cooperating with other International Organizations: Liaising with organizations like the IMF and World Bank to
ensure coherence in global economic policy-making. Explanation: Recognizes that trade policy interacts with
monetary, financial, and development policies
3. GATT (General Agreement
on Tariffs and Trade)
Meaning:
GATT was a legal agreement originally signed in 1947 (coming into force in 1948) by 23
countries. It aimed to minimize barriers to international trade by reducing tariffs, quotas, and
subsidies. It operated through rounds of negotiations. GATT was intended to be temporary
pending the creation of an International Trade Organization (ITO), but the ITO never
materialized, so GATT became the de facto international framework for trade until it was
superseded by the WTO in 1995. The original GATT text still exists as the umbrella agreement for
trade in goods within the WTO framework (GATT 1994).
Objectives OF
GATT(Historical Context):
Substantial Reduction of Tariffs: To lower customs duties on imported goods. Explanation: This was the primary
focus, achieved through successive rounds of negotiations where countries exchanged tariff concessions.
Elimination of Preferences and Quotas: To phase out discriminatory trade practices and quantitative restrictions
on imports/exports. Explanation: Aimed to move towards a more level playing field in international trade,
restricting the use of import limits.
Promote Non-Discrimination in Trade: Establish the principles of Most-Favoured-Nation (MFN) and National
Treatment. Explanation: MFN means treating all GATT partners equally (any advantage given to one must be given
to all); National Treatment means treating imported goods no less favorably than domestically produced goods
once they enter the market.
Increase Global Trade Volume: By reducing barriers, stimulate the flow of goods across
borders. Explanation: Based on the economic theory that free trade increases efficiency, competition, and overall
global welfare.
Provide a Framework for Resolving Trade Disputes: Offer a mechanism, albeit weaker than the WTO's, for
countries to address trade grievances. Explanation: Allowed for consultations and the formation of panels to
examine disputes, though enforcement was less robust.
Functions OF GATT(Historical
Context):

Provided Rules for International Trade in Goods: Established the foundational legal principles governing
trade policies for signatory nations. Explanation: Set disciplines on tariffs, quotas, subsidies, anti-dumping,
etc.
Sponsored Multilateral Trade Negotiations ("Rounds"): Organized major negotiating rounds (e.g., Kennedy
Round, Tokyo Round, Uruguay Round) where members negotiated tariff cuts and new
rules. Explanation: This was the primary mechanism for achieving progressive trade liberalization.
Established Core Trade Principles: Codified MFN and National Treatment as central pillars of the
multilateral trading system. Explanation: These principles remain fundamental within the WTO today.
Facilitated Dispute Settlement: Offered procedures for consultation and panel review when one country
believed another violated GATT rules. Explanation: Laid the groundwork for the more formalized WTO
dispute settlement system.
Collected and Disseminated Trade Information: Acted as a central point for gathering data related to
international trade flows and barriers. Explanation: Provided transparency and data for analysis and
negotiations
4. GATS (General Agreement
on Trade in Services)
Meaning:
GATS is one of the key agreements administered by the WTO, entering into force in January
1995. It was the first and only set of multilateral rules covering international trade in services. It
works similarly to GATT for goods, aiming for progressive liberalization through successive
rounds of negotiations. It covers all internationally-traded services (e.g., banking,
telecommunications, tourism, professional services) and defines four modes of supply.
Objectives:
Establish a Multilateral Framework for Trade in Services: Create legally binding rules for international trade in
services, similar to what GATT provided for goods. Explanation: Bring the rapidly growing services sector under
predictable international trade disciplines.
Promote Progressive Liberalization of Services Trade: Expand trade in services through successive rounds of
negotiations, where countries make specific commitments to open their markets. Explanation: Recognize that
immediate full liberalization was not feasible, opting for a gradual, negotiated approach.
Increase Transparency of Services Regulations: Ensure that laws and regulations affecting trade in services are
publicly available and administered reasonably and objectively. Explanation: Reduce uncertainty for foreign service
suppliers wanting to enter a market.
Facilitate Increased Participation of Developing Countries: Include provisions aimed at helping developing
countries benefit more from trade in services. Explanation: Acknowledge their specific needs and provide flexibility
in liberalization commitments.
Ensure Fair and Equitable Treatment: Apply principles like MFN (with some listed exemptions) and potentially
National Treatment (based on specific commitments) to trade in services. Explanation: Create a more level playing
field for service suppliers from different WTO member countries
 Functions
Defines Four Modes of Service Supply: Categorizes how services can be traded internationally: (1) Cross-border supply,
(2) Consumption abroad, (3) Commercial presence, (4) Presence of natural persons. Explanation: Provides a clear
framework for understanding and negotiating commitments in the diverse services sector.
Sets General Obligations: Establishes rules that apply to all members and service sectors, such as transparency and MFN
(subject to exemptions). Explanation: Creates a baseline set of disciplines for all services trade.
Provides Framework for Specific Commitments: Allows countries to schedule specific commitments regarding market
access and national treatment for particular service sectors. Explanation: This "bottom-up" approach allows flexibility, as
countries only liberalize sectors they choose to list.
Mandates Future Negotiations: Requires members to engage in periodic negotiations to progressively liberalize trade in
services further. Explanation: Builds in a dynamic element for ongoing market opening.
Addresses Domestic Regulation: Includes provisions aimed at ensuring that domestic regulations (like licensing
requirements) are not unnecessary barriers to trade. Explanation: Recognizes that non-discriminatory domestic rules can
still impede trade if overly burdensome or opaque
5. TRIMS (Agreement on Trade-Related Investment
Measures)
Meaning: TRIMS is another key agreement administered by the WTO, also effective from 1995.
It addresses certain investment measures used by governments that can restrict or distort
international trade, recognizing that some investment policies can have trade effects similar to
tariffs or quotas. It clarifies that investment measures inconsistent with GATT principles
(specifically National Treatment and quantitative restrictions) are prohibited.
OBJECTIVES

Objectives: Prohibit Trade-Restricting Investment Measures: To eliminate investment policies that inherently
distort trade flows. Explanation: Focus specifically on investment rules that have a direct negative impact on
trade in goods.
Ensure Consistency with GATT Principles: To clarify that GATT Articles III (National Treatment) and XI
(Elimination of Quantitative Restrictions) apply to investment measures affecting trade in
goods. Explanation: Prevent countries from using investment rules to circumvent their GATT obligations.
Promote the Expansion and Liberalization of Trade: By removing trade-distorting investment measures,
contribute to a freer flow of international trade. Explanation: Recognizes the link between investment policies
and trade outcomes.
Increase Transparency of Investment Measures: Require members to notify the WTO of any TRIMS they
apply. Explanation: Make existing trade-related investment policies visible to other members.
Avoid Adverse Effects on Other Members: Prevent the use of investment measures that harm the trade
interests of other WTO members. Explanation: Address the negative spillover effects certain domestic
investment policies can have internationally
Functions:

Identifies Prohibited TRIMS: Provides an illustrative list of measures inconsistent with GATT, such as local
content requirements (requiring firms to use domestic inputs) and trade balancing requirements (linking
imports to exports). Explanation: Gives concrete examples of the types of measures targeted by the
agreement.
Requires Notification: Obliges member countries to notify the WTO Council for Trade in Goods of all TRIMS
they maintain that are inconsistent with the agreement. Explanation: Creates a public record of non-
conforming measures.
Mandates Elimination of Notified TRIMS: Required members to phase out notified TRIMS within specific
transition periods (longer for developing countries). Explanation: Set a clear timeline for bringing national
policies into conformity.
Applies WTO Dispute Settlement: Makes violations of the TRIMS agreement subject to the WTO's standard
dispute settlement procedures. Explanation: Provides an enforcement mechanism to ensure compliance.
Establishes a Committee on TRIMS: Creates a body to monitor the implementation and operation of the
Agreement. Explanation: Provides a forum for members to discuss issues related to TRIMS
6. TRIPS (Agreement on
Trade-Related Aspects of
Intellectual Property Rights)
Meaning:
TRIPS is a comprehensive multilateral agreement on intellectual property (IP) administered by
the WTO, effective since 1995. It sets minimum standards for the regulation by national
governments of many forms of IP (like copyrights, patents, trademarks, industrial designs,
geographical indications, trade secrets). It also establishes minimum standards for the
enforcement of these IP rights through domestic legal systems
Objectives:

Establish Minimum Standards for IP Protection: To ensure all WTO members provide at least a certain baseline
level of protection for various forms of intellectual property. Explanation: Harmonize IP protection globally to
reduce distortions and impediments to international trade caused by vastly different national systems.
Promote Effective Enforcement of IP Rights: To require members to implement effective procedures and remedies
within their legal systems to enforce IP rights. Explanation: Ensure that the rights granted are meaningful and can
be defended against infringement.
Ensure IP Rules Don't Become Barriers to Legitimate Trade: To strike a balance so that the protection and
enforcement of IP rights do not themselves create unnecessary obstacles to trade. Explanation: Incorporate
principles like MFN and National Treatment and allow for measures to prevent abuse of IP rights.
Facilitate Technology Transfer: To contribute to the promotion of technological innovation and the transfer and
dissemination of technology, to the mutual advantage of producers and users. Explanation: While protecting
innovators, also consider the need for technology diffusion, especially for developing countries.
Resolve IP-Related Trade Disputes: To bring disputes over IP protection and enforcement under the WTO's
multilateral dispute settlement system. Explanation: Provide a structured way to handle conflicts arising from
TRIPS obligations.
Functions:

Sets Minimum Standards of Protection: Specifies the types of IP to be protected, the minimum rights to be conferred,
and the minimum duration of protection (e.g., 20 years for patents, 50+ years for copyright). Explanation: Provides
detailed requirements across different IP categories.
Establishes Enforcement Principles: Outlines general obligations for domestic enforcement procedures, including
provisions on civil and administrative procedures/remedies, provisional measures, border measures, and criminal
procedures. Explanation: Guides members on how to set up effective legal mechanisms.
Applies Basic WTO Principles: Incorporates MFN and National Treatment principles, requiring equal treatment for IP
holders from all WTO member countries. Explanation: Extends core trade principles into the realm of intellectual
property.
Allows Flexibilities: Includes provisions that allow countries some flexibility, such as for public health purposes (e.g.,
compulsory licensing of patents under certain conditions - clarified by the Doha
Declaration). Explanation: Acknowledges that IP protection needs to be balanced with other public policy objectives.
Provides for Dispute Settlement: Makes obligations under TRIPS enforceable through the WTO's Dispute Settlement
Understanding. Explanation: Gives the agreement teeth by allowing members to challenge non-compliance by others
II. Regional Integration
Groups
Regional Integration Meaning: The process whereby countries in a geographic region cooperate
to reduce or eliminate barriers to the international flow of products, people, or capital. This can
range from loose cooperation to deep integration like a common market or economic union.
1. EU (European Union)
Meaning:
The EU is a unique political and economic union of 27 member states located primarily in
Europe. It has evolved from a post-WWII economic cooperation entity (European Coal and Steel
Community) into a highly integrated bloc with a single market, significant political institutions,
and often coordinated foreign and security policies. Many members also share a common
currency, the Euro. It represents the deepest form of regional integration globally
Objectives:
Promote Peace, EU Values, and Well-being: Secure peace and stability in a continent historically prone to conflict,
upholding values like democracy, human rights, and the rule of law. Explanation: This foundational goal underpins
all other integration efforts.
Establish an Area of Freedom, Security, and Justice: Ensure the free movement of persons while coordinating on
internal security, justice, and asylum policies. Explanation: Balance the benefits of open borders internally with the
need for security and judicial cooperation.
Create a Single Market: Establish an internal market characterized by the "four freedoms": free movement of
goods, services, capital, and people. Explanation: Remove barriers to create a large, unified economic space
stimulating competition and growth.
Establish an Economic and Monetary Union (EMU): For participating members (Eurozone), coordinate economic
policies and adopt a single currency (the Euro). Explanation: Deepen economic integration, eliminate exchange
rate risk, and facilitate trade and investment within the Eurozone.
Assert Influence on the Global Stage: Act as a major global player through common foreign and security policy,
trade policy, and development aid. Explanation: Pool sovereignty to achieve greater collective influence
internationally than individual member states could alone
FUNCTIONS
Legislation and Regulation: Creating and enforcing common laws and standards applicable across all
member states (e.g., environmental protection, consumer safety, competition
policy). Explanation: Harmonizes rules to facilitate the single market and achieve common policy goals.
Managing the Single Market: Overseeing the functioning of the four freedoms, ensuring fair
competition, and removing remaining barriers. Explanation: Requires constant monitoring and
enforcement by EU institutions (like the European Commission).
Conducting Common Trade Policy: Negotiating trade agreements with non-EU countries on behalf of all
member states. Explanation: The EU acts as a single entity in the WTO and in bilateral trade deals.
Managing the Euro (for Eurozone members): The European Central Bank (ECB) sets monetary policy for
the Eurozone. Explanation: Centralized control over the single currency.
Funding Regional Development and Other Programs: Operating structural funds to reduce economic
disparities between regions, funding research (Horizon Europe), agriculture (CAP), and external
aid. Explanation: Uses the EU budget for cohesion, innovation, and achieving policy objectives
2. 2. NAFTA (North American Free Trade
Agreement) - Note: Superseded by USMCA
in 2020, but explained as requested
Meaning: NAFTA was a free trade agreement signed by Canada, Mexico, and the United States
that came into force in 1994. Its primary goal was to eliminate most tariffs and other trade
barriers on products and services passing between the three countries, creating a large free-
trade zone. It also included provisions on investment, intellectual property, and dispute
resolution.
Objectives (Historical
Context):

Eliminate Barriers to Trade: Phase out tariffs and most non-tariff barriers on goods traded among the three
countries. Explanation: Create largely duty-free market access for goods originating within the region.
Promote Conditions of Fair Competition: Establish rules to prevent anti-competitive practices and ensure a
level playing field within the free trade area. Explanation: Address issues like subsidies and state-owned
enterprises to some extent.
Increase Investment Opportunities: Create a more secure and predictable environment for cross-border
investment within North America. Explanation: Included provisions to protect investors and liberalize
investment regimes.
Provide Adequate Protection for Intellectual Property Rights: Ensure sufficient protection and
enforcement of IP rights within the region. Explanation: Harmonize IP standards among the three
countries.
Establish Effective Dispute Resolution Procedures: Create mechanisms for resolving trade disputes
between the member countries regarding the interpretation or application of the
agreement. Explanation: Offer alternatives to unilateral actions or relying solely on the GATT/WTO system.
Functions (Historical
Context):

Phased Tariff Elimination: Implemented schedules for gradually reducing and eliminating tariffs on qualifying
goods over a period of years. Explanation: Managed the transition to free trade.
Established Rules of Origin: Defined criteria to determine which goods qualified for preferential NAFTA tariff
treatment. Explanation: Ensured that benefits were restricted to goods produced primarily within North
America.
Facilitated Cross-Border Movement: Included provisions to ease the movement of certain business
professionals and streamline customs procedures. Explanation: Reduced friction at the borders for trade-
related activities.
Created Institutions: Established bodies like the Free Trade Commission to supervise implementation and
resolve disputes. Explanation: Provided an administrative structure for the agreement.
Provided Dispute Settlement Mechanisms: Included specific procedures (e.g., Chapter 19 for
anti-dumping/countervailing duty disputes, Chapter 20 for general disputes, Chapter 11 for investor-state
disputes) for resolving conflicts. Explanation: Offered dedicated pathways for addressing disagreements under
NAFTA.
(Note: The US-Mexico-Canada Agreement (USMCA) updated and replaced NAFTA, addressing
areas like digital trade, labor, environment, rules of origin for autos, and modifying dispute
settlement)
3. SAARC (South Asian
Association for Regional
Cooperation)
Meaning: SAARC is a regional intergovernmental organization and geopolitical union of states in
South Asia. Established in 1985, its member states include Afghanistan, Bangladesh, Bhutan,
India, Maldives, Nepal, Pakistan, and Sri Lanka. It aims to promote economic development,
regional cooperation, and cultural exchange among member states. However, its effectiveness
has often been hampered by political tensions, particularly between India and Pakistan
Objectives:

Promote the Welfare of the Peoples of South Asia: Improve the quality of life for citizens in the member
states. Explanation: Focus on human development, poverty alleviation, and social progress.
Accelerate Economic Growth and Social Progress: Foster development through collective action in
economic, social, and cultural fields. Explanation: Aim to boost regional economies and improve social
indicators through cooperation.
Promote Collective Self-Reliance: Strengthen the ability of South Asian countries to rely on their own
resources and cooperation. Explanation: Reduce dependence on external actors and foster intra-regional
solutions.
Contribute to Mutual Trust and Understanding: Build confidence and appreciation of each other's
perspectives and problems. Explanation: Address the historical and political mistrust that often hinders
cooperation.
Strengthen Cooperation with Other Developing Countries: Coordinate positions and collaborate with other
developing nations on international forums. Explanation: Increase the collective bargaining power of the
region globally
Functions:

Provides a Platform for Dialogue: Holds regular summits, ministerial meetings, and technical committee meetings
for discussion and coordination. Explanation: Facilitates communication among leaders and officials, even if
concrete outcomes are limited.
Promotes Cooperation in Specific Sectors: Initiates programs and establishes centers for collaboration in areas
like agriculture, health, meteorology, counter-terrorism, and culture. Explanation: Fosters practical cooperation on
shared challenges.
Facilitates Regional Economic Integration (SAFTA): Established the South Asian Free Trade Area (SAFTA)
agreement, aiming to reduce tariffs within the region (though implementation faces
challenges). Explanation: Provides a framework for trade liberalization, although non-tariff barriers remain
significant.
Encourages People-to-People Contact: Promotes cultural exchanges, tourism, and interactions among civil society
groups, academics, and professionals. Explanation: Aims to build goodwill and understanding at the societal level.
Coordinates Positions on International Issues: Enables member states to discuss and sometimes coordinate their
stances in global forums like the UN. Explanation: Provides a regional caucus, though consensus can be difficult to
achieve
India, China, South Africa
- and new members since
2024)
Meaning: BRICS is an informal grouping of major emerging economies, originally Brazil, Russia,
India, and China (BRIC), with South Africa joining in 2010. Starting January 1, 2024, Egypt,
Ethiopia, Iran, and the United Arab Emirates joined as new members. It is not a formal trade
bloc with a treaty like the EU or NAFTA/USMCA, but rather a strategic platform for members to
coordinate on geopolitical and economic issues, challenge the existing global order dominated
by Western powers, and promote cooperation among themselves
Objectives:

Enhance Multilateral Cooperation: Strengthen coordination and collaboration among member states on global
issues. Explanation: Act as a collective voice for major emerging economies in international affairs.
Reform Global Governance: Advocate for changes in international institutions like the UN, IMF, and World Bank to
give emerging economies a greater role and voice. Explanation: Challenge the post-WWII institutional setup
perceived as Western-dominated.
Promote Economic Growth and Development: Foster mutual economic cooperation, trade, and investment
among member states to support their development trajectories. Explanation: Leverage complementarities and
large markets within the group.
Foster Peace, Security, and Stability: Coordinate on international security issues and promote peaceful resolution
of disputes. Explanation: Engage in dialogue on geopolitical challenges from a non-Western perspective.
Develop Alternative Financial Mechanisms: Create institutions outside the traditional Bretton Woods framework
to support infrastructure development and financial stability among members and other developing
countries. Explanation: Reduce reliance on Western-led financial institutions (exemplified by NDB and CRA)
Functions:
Holding Annual Summits: Providing a forum for heads of state/government to meet, discuss key issues, and
issue joint declarations. Explanation: The highest level of coordination and agenda-setting for the group.
Coordinating Positions in International Forums: Aligning stances in global bodies like the G20, UN, WTO,
IMF, and World Bank. Explanation: Amplifies their collective influence on global rule-making and policy
debates.
Operating the New Development Bank (NDB): Providing financing for infrastructure and sustainable
development projects in BRICS and other emerging economies. Explanation: A concrete institutional
outcome providing an alternative source of development finance.
Managing the Contingent Reserve Arrangement (CRA): Offering a framework for providing short-term
liquidity support to members facing balance of payments pressures. Explanation: A financial safety net
mechanism intended to complement the IMF.
Facilitating Sectoral Cooperation: Promoting collaboration through ministerial meetings and working groups
in diverse areas like health, science & technology, agriculture, culture, education, and
business. Explanation: Deepening ties and practical cooperation beyond high-level political coordination