International economic organizations. (Topic 3) презентация

Topic 3: International economic organizations

IEO definition An IEO can be defined as a form of economic collaboration among states in a certain domain, based on a multilateral agreement that sets the goals, formulates the principles, settles the structure and mechanisms of the organization, taking into account the fundamental principles of human rights.

International organizations 19th century - international organizations began to appear in significant numbers. Though the advent of states as sovereign political units was an important step, preconditions for the creation of IOs were not met during the 17th and 18th centuries: - there was insufficient contact between states - there was little recognition of problems arising from interdependence among states - there was no perceived need for institutionalized mechanisms to manage international relations

Classification of IOs: Governmental/non-governmental Regional/cross-regional Specialized/universal Open/closed Developed/developing member-states

United Nations Organization

UN purposes To keep peace throughout the world; To develop friendly relations among nations; To help nations work together to improve the lives of poor people, to conquer hunger, disease and illiteracy, and to encourage respect for each other’s rights and freedoms; To be a centre for harmonizing the actions of nations to achieve these goals.

Main bodies General Assembly: 193 Member States Security Council: 5 permanent members and 10 non-permanent Economic and Social Council: 54 members International Court of Justice: 15 judges Secretariat

Functions and powers of the General Assembly Make recommendations on the general principles of cooperation for maintaining international peace and security; Discuss and make recommendations on any questions affecting the powers and functions of any organ of the UN; Initiate studies and make recommendations Consider and approve the UN budget and establish the financial assessments of Member States; and others (is similar to a parliament)

The Council is composed of 15 Members: five permanent members: China, France, Russian Federation, the United Kingdom, and the United States and ten non-permanent members elected for two-year terms by the General Assembly (with end of term date): Argentina (2014) Australia (2014) Chad (2015) Chile (2015) Jordan (2015) Lithuania (2015) Luxembourg (2014) Nigeria (2015) Republic of Korea (2014) Rwanda (2014) (Moldova has never been elected)

Functions and Powers of the Security Council to maintain international peace and security in accordance with the principles and purposes of the United Nations; to investigate any dispute or situation which might lead to international friction; to recommend methods of adjusting such disputes or the terms of settlement; to recommend the admission of new Members; (problems on the agenda?)

The Economic and Social Council (ECOSOC) serves as the central forum for discussing international economic and social issues, and for formulating policy recommendations addressed to Member States and the United Nations system. Responsibilities: promoting higher standards of living, full employment, and economic and social progress; identifying solutions to international economic, social and health problems; facilitating international cultural and educational cooperation; encouraging universal respect for human rights and fundamental freedoms.

ECOSOC membership The Council's 54 member Governments are elected by the General Assembly for 3-year terms. Seats on the Council are allotted based on geographical representation: 14 - African States, 11 - Asian States, 6 - Eastern European States, 10 - Latin American and Caribbean States, 13 - Western European and other States.

Bodies reporting directly to ECOSOC. Regional Commissions Economic Commission for Africa (ECA) Economic Commission for Europe (ECE) Economic Commission for Latin America and the Caribbean (ECLAC) Economic and Social Commission for Asia and the Pacific (ESCAP) Economic and Social Commission for Western Asia (ESCWA) (Why on regional basis?)

International Court of Justice Located at the Hague in the Netherlands, is the principal judicial organ of the United Nations.  - It settles legal disputes between states - gives advisory opinions to the UN and its specialized agencies. 

The first case entered in the General List of the Court (Corfu Channel (United Kingdom v. Albania)) was submitted on 22 May 1947. From 22 May 1947 to 8 September 2014, 161 cases were entered in the General List. Examples: Internationnal law – independence of Kosovo Maritime delimitation Indian Ocean (Somalia vs. Kenya) Activities in the border area (Costa Rica vs. Nicaragua) Whaling in the Antarctic (Australia vs. Japan)

Trusteeship Council established in 1945 by the UN Charter to provide international supervision for 11 Trust Territories placed under the administration of 7 Member States, and ensure that adequate steps were taken to prepare the Territories for self-government and independence. By 1994, all Trust Territories had attained self-government or independence.  Its work completed, the Council has amended its rules of procedure to meet as and where occasion may require.

Secretariat carries out the day-to-day work of the Organization.  It services the other principal organs and carries out tasks as varied as the issues dealt with by the UN: administering peacekeeping operations, surveying economic and social trends, preparing studies on human rights, among others.

UN budget The United Nations General Assembly on approved a $5.53 billion U.N. budget for 2014-2015, down 1% from the total spending during the previous two years. does not include peacekeeping, currently running at over $7 billion a year and approved in separate negotiations, or the costs of several major U.N. agencies funded by voluntary contributions from member states.

Budget contribution USA – 22% Japan – 10.8% Germany – 7.1% France – 5.6% China – 5.1% R. of Moldova – 0.003%

United Nations’ Millennium development goals

Goal 1 Eradicate Extreme Poverty and Hunger by 2015 Halve, between 1990 and 2015, the proportion of people whose income is less than $1.25 a day Achieve full and productive employment and decent work for all, including women and young people Halve, between 1990 and 2015, the proportion of people who suffer from hunger

Goal 2 Achieve Universal Primary Education by 2015 Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

Goal 3 Promote Gender Equality and Empower Women by 2015 Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015

Goal 4 Reduce Child Mortality by 2015 Reduce by two thirds, between 1990 and 2015, the under-five mortality rate

Goal 5 Improve Maternal Health by 2015 Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio Achieve, by 2015, universal access to reproductive health

Goal 6 Combat HIV/AIDS, Malaria, and Other Diseases by 2015 Have halted by 2015 and begun to reverse the spread of HIV/AIDS Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

Goal 7 Ensure Environmental Sustainability by 2015 Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation Achieve, by 2020, a significant improvement in the lives of at least 100 million slum dwellers (locuitori din cartiere sarace)

Goal 8 Develop a Global Partnership for Development by 2015 Develop further an open, rule-based, predictable, non-discriminatory trading and financial system Address the special needs of least developed countries Address the special needs of landlocked developing countries and small island developing States

Goal 8 Develop a Global Partnership for Development by 2015 Deal comprehensively with the debt problems of developing countries In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries In cooperation with the private sector, make available benefits of new technologies, especially information and communications

Specialized Agencies of the UN Food and Agriculture Organization of the United Nations (FAO) International Civil Aviation Organization (ICAO) International Fund for Agricultural Development (IFAD) International Labour Organization (ILO) International Maritime Organization (IMO) International Monetary Fund (IMF) International Telecommunication Union (ITU) United Nations Educational, Scientific and Cultural Organization (UNESCO) United Nations Industrial Development Organization (UNIDO) Universal Postal Union (UPU) World Bank Group World Health Organization (WHO) World Intellectual Property Organization (WIPO) World Meteorological Organization (WMO) World Tourism Organization (UNWTO)

World Bank Group International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID)

IBRD (188) The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 188 member countries.

IBRD purpose The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, analytical and advisory services.

IBRD funds IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in 1947. The income that IBRD has generated over the years has allowed it: to fund development activities to ensure its financial strength which enables it to borrow at low cost and offer clients good borrowing terms.

IBRD funds Investors see IBRD bonds as a safe and profitable place to put their money and their cash finances projects in middle-income countries. Annual funding volumes vary from year to year, and are currently around $10-15 billion.

IBRD clients IBRD clients are middle-income and credit-worthy lower income countries. The Bank classifies a country according to the wealth of its population. Middle-income countries are defined as having a per capita income of between US$1,000 and US$10,000. Low-income countries with a per capita income of less than $1,000 usually do not qualify for IBRD loans unless they are creditworthy. However, low-income countries are eligible to receive low or no interest loans and grants from IDA. India, Indonesia and Pakistan are examples of creditworthy low-income countries which are eligible for a blend of financial assistance from both IBRD and IDA.

IDA The International Development Association (IDA) provides interest-free loans—called credits— and grants to governments of the poorest countries.

IDA clients Eligibility for IDA support depends on a country’s relative poverty, defined as GNI per capita below an established threshold and updated annually. 82 countries are eligible to receive IDA resources. Together, these countries are home to 2.5 billion people, half of the total population of the developing world. An estimated 1.8 billion people there survive on incomes of $2 or less per day.

IDA focus IDA-financed operations address primary education, basic health services, clean water and sanitation, environmental safeguards, business climate improvements, infrastructure institutional reforms. These projects pave the way toward economic growth, job creation, higher incomes and better living conditions.

About one-fifth of IDA funding is provided as grants; the rest is in the form of interest-free, long-term credits. About one-fifth of IDA funding is provided as grants; the rest is in the form of interest-free, long-term credits. IDA is replenished every three years by both developed and developing country donors, as well as two other World Bank organizations—the IBRD and IFC. Former IDA recipients like China, Egypt, Korea and Turkey are now IDA donors. As one of the world’s largest external funders of health, education, infrastructure, and disaster reconstruction and recovery, IDA is critical to achievement of 2015 Millennium Development Goals. IDA helps maximize scarce(insuficient) aid resources. Every $1 of IDA aid leverages, on average, another $2. IDA is an investment in global growth, creating jobs and new opportunities in developed and developing countries.

IDA 2000-2010: IDA provided more than 47 million people with access to a basic package of health, nutrition or population services; immunized more than 310 million children; and provided antenatal care for more than 2.5 million pregnant women. IDA financing helped provide over 113 million people with access to an improved water source. IDA trained more than 3 million teachers and provided more than 105 million children with new or rehabilitated classrooms. IDA financing has supported one of the largest schooling expansions in history, including greatly improved girls’ enrollment.

International Finance Corporation The largest global development institution focused exclusively on the private sector. Helps developing countries achieve sustainable growth by: financing investment, mobilizing capital in international financial markets, providing advisory services to businesses and governments.

Multilateral Investment Guarantee Agency promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders.

International Centre for Settlement of Investment Disputes (158) provides international facilities for conciliation and arbitration of investment disputes.

WBG role Collectively, the World Bank Group is: The world’s largest funder of education The world’s largest external funder of the fight against HIV/AIDS A leader in the fight against corruption worldwide A strong supporter of debt relief The largest international financier of biodiversity projects The largest international financier of water supply and sanitation projects

International Monetary Fund an organization of 188 countries foster global monetary cooperation secure financial stability facilitate international trade promote high employment and sustainable economic growth reduce poverty around the world.

Surveillance The IMF promotes economic stability and global growth by encouraging countries to adopt sound economic and financial policies: regularly monitors global, regional, and national economic developments. seeks to assess the impact of the policies of individual countries on other economies.

Technical assistance and training IMF offers technical assistance and training to help member countries strengthen their capacity to design and implement effective policies: monetary and financial policies (monetary policy instruments, banking system supervision and restructuring, structural development of central banks); fiscal policy and management (tax and customs policies and administration, budget formulation, expenditure management, management of domestic and foreign debt); statistical data compilation, management, dissemination, and improvement; economic and financial legislation.

Lending IMF provides finance to help member countries correct balance of payments problems. A policy program supported by financing is designed by the national authorities in close cooperation with the IMF. Continued financial support is conditional on the effective implementation of this program.

Research and data The 3 activities are supported by the IMF’s economic and financial research and statistics. IMF has applied both its surveillance and technical assistance work to the development of standards and codes of good practice in its areas of responsibility, to the strengthening of financial sectors. These are part of the IMF’s continuing efforts to strengthen national and global financial systems and improve its ability to prevent and resolve crises.

IMF resources money that countries pay as their capital subscription when they become members. Each member country's quota broadly reflects the size of its economy: in terms of output and trade. For example, the world's biggest economy, the United States, has the largest quota in the IMF.

IMF vs WB promotes international monetary cooperation and provides policy advice and technical assistance to help countries build and maintain strong economies. makes loans and helps countries design policy programs to solve balance of payments problems when sufficient financing on affordable terms cannot be obtained to meet net international payments promotes long-term economic development and poverty reduction by providing technical and financial support to help countries reform particular sectors or implement specific projects—for example, building schools and health centers, providing water and electricity, fighting disease, and protecting the environment.

IMF vs WB loans are short and medium term and funded mainly by the pool of quota contributions that its members provide. assistance is generally long term and is funded both by member country contributions and through bond issuance. staff are primarily economists with wide experience in macroeconomic and financial policies. staff are often specialists in particular issues, sectors, or techniques.

OECD (Paris)

Organisation for Economic Co-operation and Development (OECD) Organisation for European Economic Cooperation (OEEC) was established in 1947 (18 countries), The OECD's origins date back to 1960, when 18 European countries plus the United States and Canada joined forces to create an organisation dedicated to economic development. OECD also works closely with emerging economies like the People's Republic of China, India and Brazil and developing economies in Africa, Asia, Latin America and the Caribbean.

OECD – mission www.oecd.org The mission of OECD is to promote policies that will improve the economic and social well-being of people around the world.

OECD Member-countries

Organisation for Economic Co-operation and Development (OECD) 34 OECD members Russia is negotiating to become a member of the OECD close relations with Brazil, China, India, Indonesia and South Africa 40 countries that account for 80% of world trade and investment

OECD - forum measure productivity and global flows of trade and investments. analyse and compare data to forecast future trends. set international standards on a wide range of things

Forum 2015 was organized around five themes: Investment Inclusive growth Innovation Climate, Carbon, COP21 Sustainable Development Goals

The OECD budget for 2014 is EUR 357 million. 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. Member Countries  % Contribution  United States  21.20  Japan 12.86 Germany 7.61  France 5.73 United Kingdom 5.24 Unlike the World Bank or the International Monetary Fund, OECD does not offer grants or make loans.

OPEC (Vienne)

Organization of the Petroleum Exporting Countries (OPEC) 1960 OPEC objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure : fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; a fair return on capital to those investing in the industry.

Member countries (12) Indonesia (1962-2009) Gabon (1975-1995) Who can become a member?

Market control OPEC does not control the oil market. OPEC Member Countries produce about 42 per cent of the world's crude oil and 18 per cent of its natural gas. However, OPEC's crude oil exports represent about 58 per cent of the crude oil traded internationally. Therefore, OPEC can have a strong influence on the oil market, especially if it decides to reduce or increase its level of production.

Oil price setting Most common misconception Although OPEC did in fact set crude oil prices from the early 1970s to the mid-1980s, this is no longer the case. Voluntary restrain crude oil production in order to stabilize the oil market and avoid harmful and unnecessary price fluctuations In today's complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges: New York Mercantile Exchange International Petroleum Exchange in London  Singapore International Monetary Exchange.

ISO (Geneva)

International Organization for Standardization ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards. ISO is a network of the national standards institutes of 161 countries ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations. Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.

Standards benefits ISO standards provide technological, economic and societal benefits. For businesses For innovators of new technologies For customers For governments For trade officials For developing countries For consumers For everyone For the planet

The scope of ISO's work ISO has more than 19 500 International Standards and other types of normative documents in its current portfolio. Diversity of ISO's work programme: agriculture and construction mechanical engineering, manufacturing and distribution, transport, medical devices, information and communication technologies, good management practice services.

Council of Europe The Council of Europe is the continent’s leading human rights organisation. 47 member states (28 - EU). All Council of Europe member states have signed up to the European Convention on Human Rights, a treaty designed to protect human rights, democracy and the rule of law.

No country has ever joined the European Union (EU - 28 member states) without first belonging to the Council of Europe. No country has ever joined the European Union (EU - 28 member states) without first belonging to the Council of Europe. The Council of Europe has created more than 200 treaties to promote human rights, democracy and the rule of law. The Council of Europe has succeeded in making Europe the only death penalty-free region in the world.

Don’t get confused Council of Europe European Council European Court of Human Rights International Court of Justice Court of Justice of the European Union