International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

1. The world economy

Part I

Policy

Classical
2. Opportunity costs
3. Comparative advantage

Economic
geography
International
business
Growth theory

New trade
9. Imperfect competition
10. Intra-industry trade

11. Strategic trade policy

New interactions
14. Geographical economics
15. Multinationals
16. New goods, growth, and
development

Part II

8. Trade policy

12. Int. trade organizations

13. Economic integration
17. Applied trade policy
modeling

18. Concluding remarks

Part III

Industrial
organization

Neo-classical
4. Production structure
5. Factor prices
6. Production volume
7. Factor abundance

Part IV

Explanations for trade

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

Introduction
Objectives / key terms
Beggar-thy-neighbor

World Trade Organization (WTO)

General Agreement on Tariffs and Trade (GATT)

United Nations (UN)

UN Conference on Trade and Development (UNCTAD)

Organization of Economic Cooperation and Development (OECD)
Central and Eastern European economic transition process

Jan Tinbergen (1903-1994)

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

The World Trade Organization (WTO/GATT)

The international GATT agreement is based on three principles:
Non-discrimination; as expressed in two sub-principles
- Most Favored Nation (MFN) treatment
- National treatment of foreign products
Two main exceptions to the non-discrimination principle:
- Free trade areas and customs unions
- Developing countries
Reciprocity (exception: developing countries)
Prohibition on trade restriction other than tariffs (exception in case
of balance-of-payments problems)

International Trade & the World Economy;

Charles van Marrewijk

The World Trade Organization (WTO/GATT)

Duration of GATT rounds and number of countries involved.

100
Tokyo

80

Uruguay

40
20

0
1945

Fourth

60

Second
Third

Kennedy
First

number of countries at start

120

1955

Dillon

1965

1975
year

1985

1995

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

The United Nations (UN) and UNCTAD

UN established in 1945, deals with many issues (culture, human
rights, security, etc.); for economics most important ECOSOC:
Programs and Funds; UNCTAD, UNDP, UNHCR, UNICEF, etc.
Functional Commissions; Social Development, Human Rights, etc.
Regional Commissions; ECA, ECE, ECLAC, ESCAP, etc.
Specialized (independent) Agencies; ILO, FAO, UNESCO, WHO,
WorldBank, IMF.
UNCTAD established out of dissatisfaction with the role of
developing countries in the world economy (Group of 77); publishes
the World Investment Report.

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

Organization for Economic Cooperation & Development, OECD

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

Increasi ng degre e of pri vat e control

Case study: economic transition in Central and Eastern Europe

Economic
market
capitalism
transition
socialism
has
different
dimensions

A
socialism /
communism
Increasing degree of private property

welfare
state

International Trade & the World Economy;

Charles van Marrewijk

Case study: economic transition in Central and Eastern Europe

Food
ppf

Manufactures
O

International Trade & the World Economy;

Charles van Marrewijk

Case study: economic transition in Central and Eastern Europe

GDP/capita (index, 1990 = 100)
140
Poland
120

Hungary
100

Slovak Rep.

80

Russia

60

Ukraine
40
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

International Trade & the World Economy;

Charles van Marrewijk

CHAPTER 12; INT. TRADE ORGANIZATIONS

Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions

International Trade & the World Economy;

Charles van Marrewijk

Conclusions
GATT, replaced by WTO, deals most directly with international trade
problems (GATT rounds to reduce trade barriers become more
complicated, take longer and involve more countries over the years).
UN organizations affect all aspects of human life; UNCTAD focuses
on problems of developing countries.
OECD is organization of economically more advanced countries.
Adjusting a countrys organizational and institutional framework is
an enormous and time-consuming process, as illustrated by the
Central and Eastern European countries.