Lecture 7: Globalisation's Multilateral Organisations Flashcards
1
Q
What organisations are involved in economic globalisation?
A
- The WTO
- The IMF
- World Bank
- G20 and G8
- OECD
2
Q
The WTO
A
- The multilateral approach to trade facilitation
- The GATT signed after WW2
- World Trade Organisation formed in 1994 to provide ongoing GATT forum
- 160 member countries
- WTO is a key driver of globalisation as it is dedicated to liberalising trade in both good and services
3
Q
Roles of WTO
A
- Reduce obstacles to international trade, and so contribute to economic growth and development
Main functions:
- provide a forum for trade negotiations between member countries
- Administering WTO trade agreement
- Settling trade disputes
- Monitoring compliance of national trade policies amongst member countries
4
Q
WTO and Trade
A
Objective is to ensure that trade flows as smoothly and freely as possible
5
Q
What are the 3 key principles of WTO?
A
- MFN - Most favoured nation
- Cannot discriminate between their trading partners - National Treatment
- Treating foreigners and locals equally
- Imported and locally-produced goods should be treated equally - Tariff binding
- When countries agree to reduce tariffs and other trade restrictions these concessions become bound
6
Q
Why do nations want to join the WTO?
A
- Benefits of trade
- It offers nondiscriminatory trade treatment
- It offers a politcally acceptable route towards trade liberalisation
- It offers a vote in world trade rules
- It provides a forum for settlement of trade disputes
7
Q
WTO criticisms
A
- WTO is undemocratic, it undermines national sovereignty
- WTO presents a world security danger
- WTO disrespects labour and human rights
- WTO is destroying the environment
- WTO is increasing inequality
8
Q
The IMF
A
International Monetary Fund - is to promote international monetary cooperation and exchange rate stability
9
Q
IMF Functions
A
- Monitoring of economic and financial developments and the provision of policy advice, aimed especially at crisis-prevention
- Lends to countries with financial difficulties
- Provides countries with technical assistance and training in its areas of expertise
- Controlled by Minsters of Finance from member countries
10
Q
The World Bank & its functions
A
- Is not a “bank”, it is one of United Nations specialised agencies
- 188 member countries, controlled by a Board of Governors who are member country ministers
- Role: to reduce world poverty
- The Bank functions include provision low-interest loans, interest-free credit, and grants to developing countries for specific development related purposes