International Organisations

International organization

An international organization (or organisation) is an organization with an international membership, scope, or presence. There are two main types:

International nongovernmental organizations (INGOs): non-governmental organizations (NGOs) that operate internationally. These may be either:

International non-profit organizations. Examples include the International Olympic Committee, World Organization of the Scout Movement, International Committee of the Red Cross and Médecins Sans Frontières.

International corporations, referred to as multinational corporations. Examples include The Coca-Cola Company, Sony, Nintendo, McDonalds, and Toyota.

Intergovernmental organizations, also known as international governmental organisations (IGOs): the type of organization most closely associated with the term 'international organization', these are organizations that are made up primarily of sovereign states (referred to as member states). Notable examples include the United Nations (UN), Organization for Security and Co-operation in Europe (OSCE), Council of Europe (CoE), European Union (EU; which is a prime example of a supranational organization), European Patent Organization and World Trade Organization (WTO). The UN has used the term "intergovernmental organization" instead of "international organization" for clarity.

In addition, Global Public Policy Networks (GPPNs) may be considered a third category. These take various forms and may be made up of states and non-state actors. Non-state actors involved in GPPNs may include: intergovernmental organizations, states, state agencies, regional or municipal governments, in partnerships with non-governmental organizations, private companies, etc.

International organizations

By: EconomyWatch Date: 30 June 2010

International organizations are legally constituted entities that operate across several nations. Such organizations do not operate for profit. Some of the international organizations are the WTO (World Trade Organization), Global Futures Foundation and IMF (International Monetary Fund).

History of International Organizations since World War II

Economic and Trade: Post WWII, the US and its winning allies came to the conclusion that a stable liberal international economic order is the necessary basis of lasting peace, apart from stable international political order. The ITO (International Trade Organizations) came to an end due to political disagreements. In 1947, GATT (General Agreement on Tariffs and Trade) was formed as a free standing trade agreement, which was less formal in nature. The GATT agreements were formalized as the WTO. The 1970s saw a substantial reduction in tariffs on many goods. During the 1980s and 1990s, the GATT member countries took the initiatives to make the agreement more formal.

Financial: World Bank made a lot of amendments in its loan practices by implementing recommendations of the French government and the Marshall Plan. The bank started shifting its focus towards non-European nations. During 1968-1980, it worked towards poverty alleviation by that ensuring people in developing nations get their basic needs. From 1989 till late 2000s, the focus has been shifted to going green. After WWII, the IMF also focused on offering monetary help to non-European countries.

Importance of International Organizations

The main objective of all the international organizations has been welfare improvement of member countries. The importance of international organizations lies in the following:

International organizations, such as International Trade Centre and World Trade Organization, assist member countries in promoting fair trade with each other.

The aim of the international organizations, such as Natural Capitalism and International Development Research Centre, is to enhance sustainable economic development in the world.

The World Bank and Institute of International Finance are international organizations that provide monetary help to member countries.

The purpose of the incorporation of international organizations, such as Food and Agriculture Organisation (FAO) and World Food Programme, is to provide food security to member nations.

The endeavor of international organizations, such as Global Environment Facility and United Nations Environment Programme, is to ensure environmental protection.

The protection of human rights is ensured by international organizations, such as the International Court of Justice and Amnesty International.

Emergency/disaster relief is taken care of by several international organizations, such as the International Committee of the Red Cross and ReliefWeb.

The World Health Organization helps member countries promote health care and facilities.

Current Challenges for International Organisations

One of the major challenges being faced by international organizations is integrating developing countries on various measures. These are also facing health related challenges, such as infant mortality in developing countries. Some other challenges that international organizations are facing are in the filed of intellectual property rights, trade in services and investment measures in relation to trade.

Future Challenges to International Organizations

The following are the future challenges facing international organizations:

Member countries fear that international organizations might dictate their terms. So, they implement protectionism in regulatory practices at the domestic level, which poses new strains.

Multilateral liberalization might face difficulties due to growing regionalism.

International organizations are likely to face the challenge of enhance international reforms in the world trade.

List of international trade organizations

Asia-Pacific Economic Cooperation (APEC)

European Free Trade Association (EFTA)

Foreign Sales Corporations (FSCs)

Free Trade Area of the Americas (FTAA)

Free On Board (FOB)

Free trade zone (FTZ)

International Monetary Fund (IMF)

International Trade Organization (ITO)

Organisation for Economic Co-operation and Development (OECD)

Organization of the Petroleum Exporting Countries (OPEC)

Special Economic Zone (SEZ)

World Intellectual Property Organization (WIPO)

World Trade Organization (WTO)

The IMF and the World Trade Organization

August 31, 2011

The IMF and the WTO are international organizations with nearly 150 members in common. While the IMF's central focus is on the international monetary and financial system, and the WTO's is on the international trading system, both work together to ensure a sound system for global trade and payments.

What objectives do the IMF and the WTO have in common?

The International Monetary Fund (IMF) is an international organization of 187 countries that works to ensure the stability of the international monetary and financial system. The IMF’s mandate includes facilitating the expansion and balanced growth of international trade, promoting exchange stability, and providing the opportunity for the orderly correction of countries’ balance of payments problems. The IMF was established in 1945.

The World Trade Organization (WTO) is an international organization of 153 members that deals with the rules of trade between nations. The WTO works to help international trade flow smoothly, predictably, and freely, and provides countries with a constructive and fair outlet for dealing with disputes over trade issues. The WTO came into being in 1995, succeeding the General Agreement on Tariffs and Trade (GATT) that was established in 1947.

The work of the IMF and the WTO is complementary. A sound international financial system is needed to support vibrant international trade, while smoothly flowing trade helps reduce the risk of payments imbalances and financial crisis. The two institutions work together to ensure a strong system of international trade and payments that is open to all countries. Such a system is critical for enabling economic growth, raising living standards, and reducing poverty around the globe.

How the IMF and the WTO work together

The IMF and the WTO work together on many levels, with the aim of ensuring greater coherence in global economic policymaking. A cooperation agreement between the two organizations, covering various aspects of their relationship, was signed shortly after the creation of the WTO.

Regular consultation: The IMF has observer status in certain WTO bodies, and may participate actively in meetings of certain WTO committees and working groups. The WTO Secretariat attends meetings of the IMF Executive Board or the Board Committee on Liaison with the World Bank, and other International Organizations on matters of common interest. Trade policy issues may feature prominently in Fund surveillance activities and are addressed in the context of IMF-supported programs when needed to meet the program’s objectives. Equally, IMF surveillance reports are important inputs to the WTO’s periodic reports on member countries’ trade policies (Trade Policy Reviews).

The WTO Agreements require that it consult the IMF when it deals with issues concerning monetary reserves, balance of payments, and foreign exchange arrangements. For example, WTO agreements allow countries to apply trade restrictions in the event of balance of payments difficulties. The WTO’s Balance of Payments Committee (BPC) bases its assessments of restrictions in considerable part on the IMF’s determination of a member’s balance of payments situation.

Informal consultation between IMF staff and the WTO Secretariat takes place regularly regarding trade policy and global economic developments, as well as on advice for individual countries. Examples of consultations include visits by senior IMF staff to the WTO, and vice versa, to make presentations and attend discussions on issues of common interest (such as recently on macroeconomics of protectionism, trade in financial services, trade finance, and global macroeconomic and financial developments). The IMF and WTO also regularly share data and research.

Technical assistance and training: The IMF, the WTO, and other international organizations and donors often work together to help countries improve their ability to trade. The Integrated Framework for Trade-Related Technical Assistance to Least-Developed Countries seeks, among other priorities, to ensure that poorer member countries incorporate appropriate trade-related reforms into their Poverty Reduction and Strategy Papers (PRSPs), which form the basis for concessional support by the IMF and the World Bank.

Fund assistance for trade liberalization: In an effort to support progress under the WTO’s Doha Round of trade talks, the IMF established the Trade Integration Mechanism (TIM) in April 2004. The TIM is available to all Fund member countries whose balance of payments positions might suffer, albeit temporarily, as a result of multilateral trade liberalization. It is not a new lending facility, but rather a policy aimed at making Fund resources more predictably available under existing IMF facilities.

High-level coordination: The Managing Director of the IMF and the Director General of the WTO consult regularly on a range of trade-related issues. At the May 2003 meeting of the WTO General Council, the heads of the IMF and the World Bank shared their views with WTO national delegations on trade issues and coherence in the work of the three organizations. At the September 2003 WTO Ministerial Meeting in Cancún, the First Deputy Managing Director of the IMF announced plans to introduce the TIM. The First Deputy Managing Director attended the December 2005 WTO Ministerial Conference in Hong Kong, China, and the November 2007 WTO General Council Meeting in Geneva. More recently, the Managing Director participated in the Second Global Review of Aid for Trade, hosted by the WTO in July 2009.

Looking forward, it is likely that cooperation and consultation between the IMF and WTO will intensify, given the increased areas of mutual support and overlap between the two institutions. Potential areas of heightened interaction include current and prospective WTO agreements on financial services, trade facilitation, and regionalism. With negotiations on the long-running WTO Doha trade round at a pivotal juncture, the Fund strongly supports the multilateral approach for trade negotiations and calls for flexibility and compromises to guarantee security in trade relationships.

Date: 2014-12-21; view: 1802