Lecture 5

MAIN INTERNATIONAL
ECONOMIC INSTITUTIONS
GEEC 204 MODERN WORLD ECONOMY 1

MAIN INTERNATIONAL ECONOMIC INSTITUTIONS
1. WTO (WORD TRADE ORGANIZATION)
2. WB (WORLD BANK)
3. IMF (INTERNATIONAL MONETARY FUND)
4. OECD (ORGANISATION FOR ECONOMIC CO-

OPERATION AND DEVELOPMENT)
5. UNCTAD (UNITED NATIONS CONFERENCE ON

TRADE AND DEVELOPMENT )
GEEC 204 MODERN WORLD 2

ECONOMY
WTO
WTO is the only global international organization dealing
with the rules of trade between nations.
The goal is to help
1. producers of goods and services,

2. exporters and importers conduct their business.
www.wto.org

ECONOMY
WTO
1. an organization for trade opening.
2. a forum to negotiate trade agreements.
3. a place to settle trade disputes.
4. operates a system of trade rules.

ECONOMY
WTO
• Location: Geneva, Switzerland
• Established: 1 January 1995
• Created by: Uruguay Round Negotiations (1986-94)
• Membership: 164 countries representing 98% of World trade.
• Budget: 197 million Swiss francs for 2018
• Secretariat staff: 625
• Head: Roberto Azevêdo (Director-General)

GEEC 204 MODERN WORLD ECONOMY 5
WTO
• Main activities:
1. Negotiating reduction/elimination of obstacles to

trade and agreeing on rules
2. administering and monitoring the application of

WTO's rules for trade in goods, trade in services,
and trade-related intellectual property rights

ECONOMY
WTO
3. monitoring and reviewing members’ trade policies
4. settling disputes among members
5. assisting the process of accession of countries
6. conducting economic research, collecting and

disseminating trade data

ECONOMY
ECONOMY
WTO
https://youtu.be/_j83pzkmDEk
https://www.youtube.com/watch?v=KKi0lW3boqE
https://www.youtube.com/watch?v=KMkJu8S8ztE
ECONOMY
WB
• WB Group consists of five organizations:
1. The International Bank for Reconstruction and

Development: (IBRD) lends to governments of middle-
income and creditworthy low-income countries.
2. The International Development Association: (IDA)

provides interest-free loans(credits) and grants to
governments of the poorest countries.
• Together, IBRD and IDA make up the World Bank.

ECONOMY
WB
3. International Finance Corporation: (IFC) helps developing
countries achieve sustainable growth by financing
investment, mobilizing capital in international financial
markets.
4. Multilateral Investment Guarantee Agency : (MIGA)

promotes foreign direct investment into developing countries
to support economic growth, reduce poverty, and improve
people’s lives.
5. International Centre for Settlement of Investment

Disputes:(ICSID) provides facilities for conciliation and
arbitration of investment disputes.
11
GEEC 204 MODERN WORLD ECONOMY
WB
• The World Bank Group has set two goals for the
world to achieve by 2030:
1. End extreme poverty by decreasing % of people

living on less than $1.25 a day to no more than 3%.
2. Promote shared prosperity by fostering the income

growth of the bottom 40% for every country.
12
WB
• Location: Washington D. C., USA
• Established: 1944
• Membership: 189 countries
• Budget: US$1,596.5 million for 2018 (IDA)
• Employees: >10000 in 120 countries
• President: Jim Yong Kim, M.D., Ph.D.

13
WB
• Each autumn, Boards of Governors of WB Group
and International Monetary Fund (IMF) hold Annual
Meetings to discuss issues such as poverty
reduction, international development and finance.
• The Annual Meetings provide a forum for

international cooperation and enable the Bank and
Fund to better serve their member countries.
14
15
WB
https://youtu.be/TAgDxqN-ahY
https://www.youtube.com/watch?v=9dd4
QIvWCOE&list=PLopq6yGfmFAuUVzlf7v
w0tQofBIzlSa5F&index=29
https://www.youtube.com/watch?v=gKpT
L8KVy1Q
16
IMF
• IMF, also known as the Fund, was conceived at a
UN conference in Bretton Woods, USA, in July
1944.
• The 44 countries at that conference sought to build

a framework for economic cooperation to avoid a
repetition of the devaluations that had contributed
to the Great Depression of the 1930s.

ECONOMY
IMF
• IMF's primary purpose is to ensure the stability
of the international monetary system—the
system of exchange rates and international
payments.
• The Fund's mandate was updated in 2012 to

include all macroeconomic and financial sector
issues that bear on global stability.

ECONOMY
IMF
• Headquarters: Washington, D.C.
• Executive Board: 24 Directors
• Staff: Approximately 2,700 from 150 countries
• Total quotas: SDR 475 billion (US$674 billion)
• The largest borrowers: Greece, Ukraine, Portugal, Pakistan
• The largest precautionary loans : Mexico, Colombia, Poland, Morocco

ECONOMY
IMF

ECONOMY
21
IMF
• Surveillance: IMF highlights possible risks to stability
and advises on needed policy adjustments.
• Lending: IMF provides loans to member countries

experiencing actual or potential balance of payments
problems.
• Technical Assistance: IMF aims to exploit synergies

between technical assistance and training (capacity
development).

ECONOMY
IMF
• Original aims:
1. promote international monetary cooperation;
2. Facilitate expansion/balanced growth of international trade;
3. promote exchange stability;
4. assist the establishment of a multilateral payments system
5. make resources available (with adequate safeguards) to

members experiencing balance of payments difficulties.

ECONOMY
24
IMF
https://www.youtube.com/watch?v=MhrC2_Hak08
https://youtu.be/DhWAsBtz47A
https://www.youtube.com/watch?v=lN3qrFA4jXc
ECONOMY
OECD
• History: established in 1961
• Headquarters: Paris, France
• Budget: EUR 374 million (2017)
• Secretary-General: Angel Gurría
• Secretariat staff: 2500
• Publications: 250 new titles/year

ECONOMY
OECD

ECONOMY
OECD
• Council: Decision-making power.
 one representative per member country, plus a

representative of European Commission.
 meets regularly at the level of permanent representatives

to OECD and decisions are taken by consensus.
 meets at ministerial level once a year to discuss key

issues and set priorities for OECD work.

ECONOMY
OECD
• Committees
 Representatives of the 34 OECD member countries meet in
specialized committees to advance ideas and review
progress in specific areas, such as
1. economics,
2. science,
3. employment,
4. education or
5. financial markets.
 about 250 committees, working groups and expert groups.

ECONOMY
OECD
• Secretariat:
 Angel Gurría heads the OECD Secretariat and is assisted

by one or more Deputy Secretaries-General.
 Staff includes economists, lawyers, scientists and other

professionals.
 Most staff members are based in Paris but some work at

OECD centres in other countries.

ECONOMY
OECD

ECONOMY
OECD
• OECD's origins date back to 1960, when 18 European
countries + USA and Canada joined forces to create an
organisation for economic development.
• 34 Member countries include many of the world’s most

advanced countries but also emerging countries like
Mexico, Chile and Turkey.

ECONOMY
OECD
• OECD is funded by its member countries.
• National contributions are based on a formula which takes

account of the size of each member's economy.
• The largest contributor is USA, with 21% of the budget,

followed by Japan.
• Countries may make voluntary contributions to financially

support outputs.

ECONOMY
OECD
• The size of OECD's budget and its program of work are
determined on a two-year basis by member countries.
• Independent external auditing of OECD’s accounts and

financial management is performed by a Supreme Audit
Institution of an OECD member country.
• Unlike the WB or IMF, OECD does not dispense grants or

make loans.

ECONOMY
OECD
https://www.youtube.com/watch?v=WjOMHa
Np5GY
https://www.youtube.com/watch?
v=b9_G3_q034o
v=B5XGiihBfaU

ECONOMY
UNCTAD
• History: established in 1964
• Headquarters: Geneva, Switzerland
• Secretary-General: Mukhisa Kituyi
• permanent intergovernmental body by United Nations.
• offices in New York and Addis Ababa.

ECONOMY
UNCTAD
• support developing countries to access the benefits of a
globalized economy more fairly and effectively.
• provide analysis, consensus-building, technical assistance.
• support implementation of Financing for Development, as

mandated by the global community in the 2015 Addis
Ababa Agenda,
• together with four other major institutional stakeholders:

WB, IMF, WTO, United Nations Development Programme.

ECONOMY
UNCTAD THEMES
• Debt and Development Finance
• Foreign Direct Investment and Multinational Enterprises
• Intellectual Property, Science, Technology, Innovation
• Least Developed and Developing Countries
• Trade Negotiations and Commercial Diplomacy
• Competition and Consumer Protection, Trade
• BioTrade, Trade and Environment
• Commodities and Development
• Trade Facilitation
• Transport and Policy Legislation
• E-Commerce legislation
• Statistical Capacity-Building
• Business Schools for Impact
• Corporate Social Responsibility
• Issues on the International Economic Agenda,
• Gender and Development

ECONOMY
UNCTAD

ECONOMY
https://youtu.be/_dIwFzGt5ug
v=PVhljMLMv9M
v=yaaoi7ZpPCA

ECONOMY

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MAIN INTERNATIONAL

GEEC 204 MODERN WORLD ECONOMY 1

1. WTO (WORD TRADE ORGANIZATION)

3. IMF (INTERNATIONAL MONETARY FUND)

4. OECD (ORGANISATION FOR ECONOMIC CO-

5. UNCTAD (UNITED NATIONS CONFERENCE ON

GEEC 204 MODERN WORLD 2

The goal is to help

1. producers of goods and services,

GEEC 204 MODERN WORLD 3

2. a forum to negotiate trade agreements.

3. a place to settle trade disputes.

4. operates a system of trade rules.

GEEC 204 MODERN WORLD 4

• Created by: Uruguay Round Negotiations (1986-94)

• Membership: 164 countries representing 98% of World trade.

• Budget: 197 million Swiss francs for 2018

• Secretariat staff: 625

• Head: Roberto Azevêdo (Director-General)

1. Negotiating reduction/elimination of obstacles to

2. administering and monitoring the application of

GEEC 204 MODERN WORLD 6

4. settling disputes among members

5. assisting the process of accession of countries

6. conducting economic research, collecting and

GEEC 204 MODERN WORLD 7

1. The International Bank for Reconstruction and

2. The International Development Association: (IDA)

• Together, IBRD and IDA make up the World Bank.

GEEC 204 MODERN WORLD 10

4. Multilateral Investment Guarantee Agency : (MIGA)

5. International Centre for Settlement of Investment

1. End extreme poverty by decreasing % of people

2. Promote shared prosperity by fostering the income

• Membership: 189 countries

• Budget: US$1,596.5 million for 2018 (IDA)

• Employees: >10000 in 120 countries

• President: Jim Yong Kim, M.D., Ph.D.

• The Annual Meetings provide a forum for

• The 44 countries at that conference sought to build

GEEC 204 MODERN WORLD 17

• The Fund's mandate was updated in 2012 to

GEEC 204 MODERN WORLD 18

• Headquarters: Washington, D.C.

• Executive Board: 24 Directors

• Staff: Approximately 2,700 from 150 countries

• Total quotas: SDR 475 billion (US$674 billion)

• The largest borrowers: Greece, Ukraine, Portugal, Pakistan

• The largest precautionary loans : Mexico, Colombia, Poland, Morocco

GEEC 204 MODERN WORLD 19

GEEC 204 MODERN WORLD 20

• Lending: IMF provides loans to member countries

• Technical Assistance: IMF aims to exploit synergies

GEEC 204 MODERN WORLD 22

2. Facilitate expansion/balanced growth of international trade;

3. promote exchange stability;

4. assist the establishment of a multilateral payments system

5. make resources available (with adequate safeguards) to

GEEC 204 MODERN WORLD 23

• Budget: EUR 374 million (2017)

• Publications: 250 new titles/year

GEEC 204 MODERN WORLD 26

GEEC 204 MODERN WORLD 27