The Bretton Woods system gave birth to three international organisations of paramount importance for International Economic affairs
These are:
1. The World Trade Organization (WTO) (the successor of the General Agreement on Tariffs and Trade)
2. The International Monetary Fund (IMF)
3. The World Bank Group These are generally perceived as the three main organisations regulating the international economic order.

The following are the major differences between IMF and World Bank:
(i) The International Monetary Fund is a controller of the world’s monetary system. World Bank is a global financial institution.
(ii) The IMF focuses on bringing economic stability, whereas the World Bank laid emphasis on economic growth of the developing nations

The SAARC Group (SAARC) comprises of Bangladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka. In April 2007, Afghanistan became its eighth member.

(i) An economic union is composed of a common market with a customs union.
(ii) The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production and a common external trade policy
(iii) E.g. European Economic Union

i. Agreement on Trade Related Intellectual Property Rights (TRIPs)
ii. Agreement on Trade Related Investment Measures (TRIMs)

The bank now also takes interest in the activities of the development of rural areas such as:
a) spread of education among the rural people
b) development of roads in rural areas and
c) electrification of the villages

Under the supplementary financing facility, the IMF makes temporary arrangements to provide supplementary financial assistance to member countries facing payments problems relating to their present quota sizes.

The buffer stock financing facility was started in 1969. The purpose of this scheme was to help the primary goods (food grains) producing countries to finance contributions to buffer stock arrangements for the stabilisation of primary product prices.

(i) International Development Association (IDA, 1960)
(ii) International Finance Corporation (IFC, 1956)
(iii) Multilateral Investment Guarantee Agency (MIGA, 1958)
(iv) International Centre for Settlement of Investment Disputes (ICSID, 1966)

The SAARC Secretariat was established in Kathmandu (Nepal) on 16^th January 1987.

(i) Free trade area is the region around a trade bloc whose member countries have signed a free-trade agreement.
(ii) Such agreements involve cooperation between at least two countries to reduce trade barriers. e.g. SAFTA, EFTA.

(i) Common market is established through trade pacts.
(ii)  A group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members.

1. Loans out of its own fund.
2. Loans out of borrowed capital and
3. Loans through Bank's guarantee.

(i) To accelerate the economic growth, social progress and cultural development in the region.
(ii) To promote regional peace and stability and adherence to the principles of the UN Charter.

(i) Also called 'Paper Gold', SDR is a form of international reserves created by the IMF in 1969 to solve the problem of international liquidity.
(ii) They are allocated to IMF members in proportion to their quotas.
(iii) It is used as a means of payment to meet balance of payments deficits.