REGULATING

GLOBALIZATION AND
INTERNATIONALIZATION
Globalization
Refers to global economic integration
formerly national economies into one global
economy, mainly by free trade and free capital
mobility, but also by easy or uncontrolled
migration.

Internationalization
Refers to the increasing of international
trade, international relations, treaties, alliances,
etc.
The acceleration of globalization
in the post 2nd world war period is
the result of the plans of
economists, businessmen and
politicians that recognized the
negative effects of protectionism
and poor international economic
integration.
Certain factors that accelerate and widen the
domain of globalization
1. Huge international organizations that desire to affect and if
possible control the politic developments in the world.
2. International pacts- large scale treaties covering many
countries.
3. Transnational economic association that are large scaled
and have many members.
4. MNCs that operate in more than one country and are
business, manufacture and trade centers, banks and
corporation.
5. Certain socio- politic movements that are called trends and
affect almost continents, countries and people deeply.
International Organization
At the national level the stabilizing
institutions are social and financial safety nets.
At the international level they are the WTO, the
MIF, the Basel Committee of Banking
Supervisors, the WB, the OECD and others.
International Monetary Fund- IMF
The IMF is an international organization of
185 member countries. It was established in
1944 to promote international monetary
cooperation, exchange stability, and orderly
exchange arrangements; to foster economic
growth and high levels of employment; and to
provide temporary financial assistance to
countries to help ease balance of payments
adjustment which in turn means the regulation
of globalization at individual country level.
 In this framework the IMF advises individual countries
to apply the following policy recommendations in order to
manage the process efficiently and benefit it:
• Macroeconomic stability to create the right conditions for
investment and saving,
• Outward oriented policies to promote efficiency through
increased trade and investment,
• Structural reform to encourage domestic competition,
• Strong institutions and an effective government to foster
good governance,
• Education, training, and research and development to
promote productivity,
External debt management to ensure adequate resources for
sustainable development.
World Bank- WB
Since its inception in 1944, the WB has
expanded from a single institution to a closely
associated group of five development
institutions. The WB’s mission evolved from
the International Bank for Reconstruction and
Development (IBRD) as facilitator of post-war
reconstruction and development to the present
day mandate of worldwide poverty alleviation
in conjunction with its affiliate, the International
Development Association.
 The IMF’s control and regulation process
involves surveillance,
 financial assistance,
 Exogenous Shocks Facility,
 Stand-by Agreements,
 Extended Fund Facility,
 Supplemental Reserve Facility,
 Compensatory Financing Facility and
Emergency Assistance
 Technical assistance
 The WB’s vision is to contribute to an
inclusive and sustainable globalization - to
overcome poverty, enhance growth with care for
the environment, and create individual
opportunity and hope and to advance ideas
about international projects and agreements on
trade, finance, health, poverty, education, and
climate change so that they can benefit all,
especially the poor seeking new opportunities.
The process includes fund generation, loans,
grants, analytic and advisory services and
capacity building.
Organization for Economic Co-Operation
and Development - OECD
The forerunner of the OECD was the
Organization for European Economic Co-
operation (OEEC). The OEEC was formed in
1947 to administer American and Canadian aid
under the Marshall Plan for the reconstruction
of Europe after World War II. Its headquarters
were established in Paris in 1949.
The OECD took over from the OEEC in 1961.
Since then, its missions have been to:
• Support sustainable economic growth,
• Boost employment,
• Raise living standards,
• Maintain financial stability,
• Assist other countries' economic
development,
• Contribute to growth in world trade.
World Trade Organization – WTO
The WTO has 151 members, accounting for over
97% of world trade and is the only global international
organization dealing with the rules of trade between
nations that is the main catalyst of the process of
globalization. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading
nations and ratified in their parliaments.
Currently there are WTO agreements on goods, services
and intellectual property rights. The GATT is the
principle rule-book for trade in goods. The WTO also
provides dispute settlement and policy reviews.
Main functions of the organization are as follows:
• Administering trade agreements,
• Acting as a forum for trade negotiations,
• Settling trade disputes,
• Reviewing national trade policies,
• Assisting developing countries in trade policy
issues, through technical assistance and training
programs,
• Cooperating with other international organizations.
• As the main purposes of the organization are to
promote freer trade, fair competition and encourage
development and economic reform, it is one of the
main contributors of the process of economic
globalization.
United Nations – UN
Another organization regulating globalization is
the UN. Its roots go back to the International
Telecommunication Union, 1865. The name
"United Nations", coined by United States
President Franklin D. Roosevelt, was first used
in the "Declaration by United Nations" of 1
January 1942. Today the UN has 192 member
states.
The organization is central to global efforts to solve
problems that challenge humanity. Cooperating in
this effort are more than 30 affiliated organizations,
known together as the UN system. Day in and day
out, the UN and its family of organizations work to
promote respect for human rights, protect the
environment, fight against disease and reduce
poverty. With more than 70% of the work of the
UN system, one of the UN's central mandates is the
promotion of higher standards of living, full
employment, and conditions of economic and social
progress and development
In order to achieve these goals, some tools are as
follows:
• Grant free access to their markets for good produced
in poor countries,
• Implement debt relief program, including
cancellation of all official debts of the heavily
indebted poor countries, in return for those countries
making demonstrable commitments to poverty
reduction,
• Grant more generous development assistance,
• Work with pharmaceutical companies and other
partners to develop an effective and affordable
vaccine against HIV,
• Make special provision for the needs of Africa.
THANK
YOU
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