Dynamic of international economic order: law, politics, and power - Essay Example

It serves to expand the balance of international trade among member states and the globes economy. The financial institution is governed by different governing bodies. The board of governors that include representatives from all the member states is the highest decision making in the institution. The IMF work in cooperation with other world financial institutions such as the World Bank and World Trade Organizations in the regulation and management of the Global trade. The United States own a large share of the veto power because of its massive financial dominance in the institution.

The IMF operates along strategic, political, and legal dimensions. That poses a significant challenge in its operations and diplomatic relations among member states. A major challenge experienced by IMF is the dominance in decision making by the giant financier and IMF officials. The two parties insist that reforms such as the changes in the voting shares designed to reflect shifts in the global economy and doubling the IMFs lending authority cannot be in effect without approval by the congress.

This issue operates along two factors, the legal factor and the political factor. The legal factors presented in this case is the dependent between the giant financier of the organization the U.S and Congress in passing significant reforms regarding the operations of the institution. The constitution of the IMF stipulates that only a nation with most veto power can pass reforms in the changing of the voting shares. Hence the US enjoys legal rights in determining the changes in the voting shares since it controls most funds in the organization.

The congress and other IMF officials are left with no option but to side with the US in a number of reforms since they share almost equal powers in the institution. The U.S and the congress have been hesitant in changing of the voting shares with