International Organisations

2.5 International Organisations
-The major institutions of the global economy are the World Trade Organisation, the International Monetary Fund and the World Bank. Other organisations with substantial influence in the global economy include the Organisation for Economic Cooperation and Development and the United Nations.
World Trade Organisation
  * The WTO is one of the most powerful global economic institutions. The role of the WTO is to implement and advance global trade agreements and to resolve trade disputes between economies.
  * The responsibility for developing trade agreements was borne by the General Agreement on Tariffs and Trade(GATT) process that began in 1947.
  * Under the GATT process, regular rounds of trade negotiations were conducted; once agreements were reached, it was up to the individual countries who belong to GATT to put those agreements in place.
  * The weakness of GATT process was that there was no effective mechanism to enforce the trade agreements and as a result, many countries only implemented parts of the GATT agreements.
  * The Uruguay Round led to the WTO agreement.
  * One of the WTO’s role is settling disputes between countries. If a country believes that it is suffering harm as a result of another country’s failure to comply with its WTO obligations can lodge a complaint with the WTO. A process of dispute resolution is then commenced and if no agreement can be reached directly, a WTO panel will hear the complaint and then issue a decision.
  * The WTO’s membership is growing with 153 countries in 2010.
  * The WTO’s major focus in recent years has been the Doha Round of trade liberation talks(ambitious goals to free up global trade). The aim is to lift millions of people in developing countries out of poverty.

International Monetary Fund (IMF)
  * 186 members
  * Role is to maintain international financial stability.
  * When a crisis occurs in an individual economy, the IMF will often develop a...