International economic organizations. (Topic 3)

1. Topic 3: International economic organizations

2. 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.

3. 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

4. Classification of IOs:

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

5. United Nations Organization

6. 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.

7. 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

8. 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)

9. 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)

10. 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?)

11. 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.

12. 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.

13. 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?)

14. 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.

15. 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.

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)

16. 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 selfgovernment or independence.
Its work completed, the Council has amended its
rules of procedure to meet as and where occasion
may require.

17. 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.

18. UN budget

• The United Nations General Assembly on
approved a $5.53 billion U.N. budget for 20142015, 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.

19. Budget contribution

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

20.

United Nations’
Millennium development
goals

21. 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

22.

23. 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

24.

25. 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

26.

27. Goal 4 Reduce Child Mortality by 2015

• Reduce by two thirds, between 1990
and 2015, the under-five mortality rate

28.

29. 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

30.

31. 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

32.

33. 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)

34.

35. 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

36. 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

37.

38. 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)

39. 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)

40. 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.

41. 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.

42. 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.

43. IBRD funds

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

44. 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.

45. IDA

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

46. 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.

47. 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.

48.

• 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.

49. 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.

50. 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.

51. 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.

52. International Centre for Settlement of Investment Disputes (158)

provides international facilities for
conciliation and arbitration of investment
disputes.

53. 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

54. 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.

55. 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.

56. 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.

57. 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.

58. 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.

59. 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.

60. 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.

61. 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.

62. OECD (Paris)

63. 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.

64. 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.

65. OECD Member-countries

Australia
France
Korea
Slovenia
Austria
Germany
Luxembourg
Spain
Belgium
Greece
Mexico
Sweden
Canada
Hungary
Netherlands
Switzerland
Chile
Iceland
New Zeeland
Turkey
Czech Rep.
Ireland
Norway
UK
Denmark
Israel
Poland
USA
Estonia
Italy
Portugal
Finland
Japan
Slovak Rep.

66. 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

67. 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

68. Forum 2015 was organized around five themes:

Investment
Inclusive growth
Innovation
Climate, Carbon, COP21
Sustainable Development Goals

69. 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.
1.
2.
3.
4.
5.
Member Countries
United States
Japan
Germany
France
United Kingdom
% Contribution
21.20
12.86
7.61
5.73
5.24
Unlike the World Bank or the International Monetary
Fund, OECD does not offer grants or make loans.

70. OPEC (Vienne)

71. 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.

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

Algeria(1969)
Irak(1960)
Qatar (1961)
Angola(2007)
Kuwait(1960) Saudi Arabia
(1960)
Ecuador(1973)
Libya(1962)
Iran(1960)
Nigeria(1971) Venezuela(1960)
United Arab
Emirates(1967)

73. 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.

74. 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.

75. ISO (Geneva)

76. 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.

77. 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

78. 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.

79. 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.

80.

• 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.

81. 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