International institutions are very effective to regulate multinational corporations in many ways. There are few institutions which always take care for the multinational corporations. Also, these institutions effective to give suggestion about economy. Global trends which are around the world have shown that the more stringent and effective labor legislation, the more likely MNC’s will relocate to another jurisdiction.
As a result, globalization endangers the jobs and employment benefits that labor law was intended to protect. As in any enterprise, big and small, the maximization of profits and resources must be of paramount importance.
By enlarging the scope of the World Trade Organization to the equalization of labor standards , the prospects of more efficient international trade relations become further possible , but not without triggering intense protests from the most affected stake-holder – the labor of the world .
The Bretton Woods Organizations Prior to the WTO – An Overview Prior the emergence of the World Trade Organization, the World Bank and the International Monetary Fund were established by different states after World War II to firstly help in reconstruction efforts to countries devastated by the war.
More so , these two institutions lent billions of dollars in aid to underdeveloped countries to fast-track their economic growth especially in the wake of complex issues such as government corruption , civil war , recession , among others .
Their primary task has been to assist and provide economic assistance to hundreds of developing countries in various fields such as education , agriculture ,land reform , healthcare , energy production , and even governance ,notwithstanding at the forefront of monitoring exchange rates and balance of payments of different countries . The two institutions also embark of comprehensive economic researches on the plight of different countries to determine the best recourse of aid, depending on the local needs of the beneficiary state, such as infrastructure, education, and healthcare, among others.
However, the IMF and the WB have been better known in the underdeveloped world as loaning billions of dollars in aid that are laden with various conditionality’s which sometimes leave the beneficiary countries at a disadvantage, notwithstanding allegations that these institutions were complicit in the funding of military dictatorship that terrorized much of Latin America and parts of Asia in the second half of the 20th century.
One particular example of this has been the relentless llegations that the two institutions continuously sent aid to the Philippine government under the regime of Dictator Ferdinand Marcos even if both institutions knew that much of the aid shall not trickle down to Philippine constituents but rechanneled to Marcos and his cronies Swiss bank accounts. Nonetheless, for as long as the WB and the IMF continues to enjoy a legal and political presumption of good faith and service in its dealings with its member countries, no amount of international propaganda should preclude the two institutions from pursuing its goals and objectives.