Why is it in the news?
- Bretton Woods Committee (BWC)’s “Strengthening the Bretton Woods Institutions (BWIs) to Meet 21st -Century Global Challenges” Report released.
- The report is the first from the Bretton Woods Committee’s Multilateral Reform Working Group (MRWG), established to enhance the effectiveness of the multilateral system.
| · Bretton Woods Committee (BWC): Founded in 1983, BWC is a non-profit organization dedicated to promoting effective global economic and financial cooperation.
· Bretton Woods Institutions (BWIs): Established in 1944 by 43 countries, the BWIs include the World Bank and the International Monetary Fund (IMF). They were created to rebuild the post-war economy and foster international economic cooperation. · Multilateralism, led by International Financial Institutions like the World Bank and IMF, has driven high growth and globalization, benefiting the global population.
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Challenges Highlighted
- Crises in the global commons have had profoundly negative effects on the world economy, undermining gains in health, education, and productivity.
- Progress in addressing these challenges has been slow due to the fragmentation of the global economy and increasing geopolitical tensions.
| Global Commons
· These are parts of the planet that fall outside national jurisdictions and are accessible to all nations. · International law identifies four global commons: the High Seas, the Atmosphere, Antarctica, and Outer Space. |
Recommendations for Strengthening BWIs
- Establish ministerial-level Councils within BWIs to oversee issues related to global commons.
- Design instruments and institutional arrangements to finance initiatives aimed at addressing climate challenges.
- Expand climate-linked financial instruments to support climate-related projects.
- Establish a permanent mechanism to conduct systematic reviews of progress in global financing and implementation plans.
