GLOBAL ECONOMIC ORGANIZATIONS

Organizations Promoting Internationalism

Bretton Woods Agreement

Concerns about rebuilding the global economy after WW II (avoid repeat of Great Depression)

Met in the United States – 44 countries participated (allies of the USA)

Signed agreement to establish rules and institutions for the global economy: World Bank IMF – International Monetary Fund GATT – General Agreement on Tariffs and Trade

(later becomes the WTO)

World Bank (http://www.worldbank.org/)

Created after World War Two: designed to help rebuild countries damaged by war

Gives loans to countries in financial difficulty Focus is on reducing poverty by encouraging

international trade

Countries must meet certain conditions to get loans:

Reduce debt and government corruption Promote free market principles

(capitalism)

International Monetary Fund (IMF) (http://www.imf.org/external/about.htm)

Works with the World Bank to provide short-term loans Focus is on reducing poverty through international

trade

Monitors exchange rates for world currencies (they help to determine what currencies like the Canadian dollar are worth, which makes it easier to trade internationally)

World Trade Organization (WTO) (http://www.wto.org/)

Formed from GATT (General Agreement on Trade & Tariffs) GATT created after WWII believed free trade would

encourage world peace

Focus of the WTO Improve trade relations between countries by removing

tariffs and trade barriers Must be a member nation to participate within the WTO Members must follow rules on trade, and there is a

panel that can help to mediate conflicts peacefully(Link to Video: The Truth Behind the WTO -

http://www.youtube.com/watch?v=E1Oj7Hk31LY)

NAFTA

NAFTA is an example of a trading bloc: group of countries that work together to give each other better trade terms, often a form of free trade

Organizations that are similar to NAFTA include ASEAN (Association of Southeast Asian Nations) and the EU (European Union)

NAFTA was created as a result of increasing trade between Canada and the United States Eg. – car manufacturing

AutoPact

Desire was to increase trade across the borders by promoting free trade

Free Trade: reducing or eliminating tariffs and other trade barriers

North American Free Trade Agreement (NAFTA)

(http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/index.aspx)

FREE TRADE: Reducing or eliminating tariffs and other

trade barriers

G-8 – The Group of Eight (http://www.g8.gc.ca/work-en.asp)

The eight major developed nations (strongest economies) US, Britain, France, Germany, Italy, Japan, Canada,

Russia as of 2008 China is considered an emerging developing nation, as is India

so they are part of the G20

Not a formal organization, instead they meet on a regular basis to discuss policy to help influence the foreign policies of member nations In 2008 they dealt with issues as diverse as what to do

about the failure of the Kyoto environmental protocol, and the fraudulent elections in Zimbabwe

MANY ORGANIZATIONS ESTABLISHED TO RESPOND TO THE NEEDS OF THE POOR OR THE

ENVIRONMENT HAVE CHOSEN TO PROTEST AT THESE MEETINGS TO GET THEIR MESSAGE OUT TO

THOSE WORLD ECONOMIC LEADERS. INCREASINGLY GROUPS HAVE TURNED TO

VIOLENCE IN ORDER TO GET ATTENTION FROM THE MEDIA – THIS ALL CAN BE LINKED BACK TO

THE WTO PROTESTS IN SEATTLE IN 1999.

Protesting International Organizations

Views of globalization