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
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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
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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
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4
Q

WTO and Trade

A

Objective is to ensure that trade flows as smoothly and freely as possible

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5
Q

What are the 3 key principles of WTO?

A
  1. MFN - Most favoured nation
    - Cannot discriminate between their trading partners
  2. National Treatment
    - Treating foreigners and locals equally
    - Imported and locally-produced goods should be treated equally
  3. Tariff binding
    - When countries agree to reduce tariffs and other trade restrictions these concessions become bound
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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
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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
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8
Q

The IMF

A

International Monetary Fund - is to promote international monetary cooperation and exchange rate stability

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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
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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
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