IGO’s

Inter-Governmental Organizations
TNC’s
Governments
IGO’s
IGOs have contributed to a relatively stable economic and political world since 19445 which
has encouraged global economic growth. IGOs promote economic liberalization:
Free trade between countries
Private industries, not government owned ones
Free movement of capital, including foreign direct investment

World bank formed in 1944

Its first loan was to France for post war reconstruction
Lends money to developing and emerging economies to promote economic development
This is done within a western capitalist model
The money originates from developed economies.

The IMF (International Monetary Fund)

The IMF formed in 1944
Stabilized currencies after WW2
Created by 44 rich countries to help those in debt
Intended to prevent to prevent poverty and so limit the spread of communism
In 2009 it had 185 member countries

Example – Singapore
Fall to Japan in 1942 = caused major damage + USA feared communism
USA encouraged rebuilding through loans and investment
Economic recovery rapid = became an “Asian Tiger”
GDP – 1979 5.9 billion, 1989 = 27.5 billion, 1999 = 98 billion, 2007 = 153 billion USD

The WTO – World Trade Organization

Override purpose is to help trade flow as freely as possible – so long as there are no
undesirable side-effects
To abolish or reduce trade barriers

WTO -What is it?

An international organization which oversee a large number of agreements defining the
“rules of trade” between its member states.
An organization for liberalizing trade (free trade – no restrictions on companies)
A forum for governments to negotiate trade agreements
A place for governments to settle trade disputes

Protectionism
Since the Doha round, protectionism has increased somewhat. A number of countries have
argued that free trade is “unfair” and that their own industries and companies should be
protected from foreign competition
Most but not all economists argue that protectionism reduces the overall volume of trade
therefore overall economic growth.

The Essay:
IGOs form the world we all know today. Contributing to the highly globalized
world where traveling and shipping is at minimum cost compared to what it
was at the beginning of creation of all IGOs. These enormous international
institutions such as The World Bank or The International Monetary Fund
support global trade, thus allowing developing and third world countries to
take their part in globalization and cut their share. Loads of statistics support
that the development of poverty levels and hunger have in second world and
third world countries have been dramatically decreasing throughout the time
until today. Not only things like poverty were reduce, aspects such as the
economic health of nations has drastically increased as The World Bank offers
loans for countries that severely need it, hence preventing potential collapses
of nations. In addition, the International Monetary and World Trade
Organization are agreeing on terminating tariffs for trade to be shipped
smoothly throughout different countries. This international economic
interdependence prevents major world conflicts not to happen, rather the
international community will choose peace and growth over war