KEY ACTORS IN GLOBALISATION

1: The IMF and the World Bank

Description

Founded at the Bretton Woods conference in 1944

Both institutions lend to governments

(Originally- the IMF lent to help the governments with balance of payments problems and the World Bank for specific
development programmes/problems. Today the roles are blurred)

Role in Globalisation

The institutions can lay down conditions for the loans. The IMF in particular demanded Structural Adjustment Programmes . Due
to the dominant liberal ideology these reforms asked governments to liberalise their economies in the belief that this will speed
up development.

As well as being directly involved in flows of capital, the institutions facilitate the further liberalization of the world economy
thus facilitating an increase in the activities associated with globalisation.

The voting system in the IMF is dominated by the EU (32%), the USA (17.7%) and other advanced economies (15.8%)

The BRICS have 11.5% of the vote.

Developing Asia (excluding India and China) has 4.1% of the vote

2: The WTO

Description

The World Trade Organisation was established in 1995 to replace the GATT (General Agreement on Tariffs and Trade). It exists
to promote international commerce .

162 members with 21 applicant countries.

Members must abide by rules that they establish together.

The Doha round is the current set of negotiations aiming to deal with further reductions in Tariffs and also farm subsidies.

Role in Globalisation

The WTO exists to dismantle barriers to trade be they tariffs or red tape.

The WTO covers trade of goods but also services, intellectual property and discusses agricultural subsidies.

3: THE ILO and the WHO

Description

The International Labour Organisation was set up in 1919 as part of the League of Nations. It was more successful than the
League of Nations itself and has become associated with the UN alongside the World Health Organisation.

They try to improve living conditions in the world

Role in Globalisation

The ILO campaigns to improve working conditions and remove the worst abuses such as child labour or forced/ compulsory
labour.

The WHO exists to promote better healthcare throughout the world and to help in emergencies.

Both seek to facilitate the work of NGOs.

They are involved in the flows of knowledge.

4: The Red Cross. (NGO example)

Description

It was founded in 1863

The Red Cross exists to protect victims of armed conflict (but also operates in humanitarian crises)

It operated all over the world, but the main recipients of its aid are in the developing world.

Role in Globalisation

It operates across borders.

Due to its operations and willingness to work with local groups it is involved in flows of knowledge and expertise.

The Red Cross campaigns for international rules concerning armed conflict (since the first Geneva convention in 1864)

5: Jubilee (NGO example)

Description

The Jubilee movement is an NGO that campaigns for debt relief, specifically in the world’s poorest countries.

It was established in the 1990s.

Role in Globalisation

Jubilee campaigns for lending to be made responsible and for debt relief specifically on IMF and World Bank loans.

It also campaigns against tax havens and capital flight.

They criticize the IMF and the World Bank and campaign for its reform.

They campaign for trading regulations that do not focus only on corporate interests and against excessive patenting that can
undermine access to development

6: Shareholders, Consumers and Activists

Description

These are individuals

Role in Globalisation

Behind all the institutions and organisations there are individuals. Individuals act in globalization through investment either
directly or through institutional investors such as pension funds, hedge funds and banks. The choices of consumers can have an
effect on processes and practices associated with globalization. Individuals can try to be careful consumers and as such influence
the more powerful actors in globalization. For example, choosing fair trade products can influence the TNCs to adopt more
humane practices.

7: TNCs (example = APPLE)

Description

TNCs, sometimes called, globally integrated enterprises are the prime actors in globalization. Many of the larger ones have more
international clout that certain states.

They connect the world through their economic activities.

Role in Globalisation

TNCS contribute to all the flows in globalisation. Their principal activities are the flows of goods and services, to do which they
invest in other countries. A side effect of their activities, is the transfer of knowledge and also the movement of workers across
borders.