Economic Organizations

Economic Organizations The Group of Eight (G8) What is it? It refers to the group of eight highly industrialized nations—France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia—that hold an annual meeting to foster consensus on global issues like economic growth and crisis management, global security, energy, and terrorism.

Economic Organizations It was formed in 1975, back then it was known as the G6, comprising France, West Germany, Italy, Japan, the United Kingdom, and the United States. The G6 was intended to provide major industrial powers of the noncommunist world a venue in which to address economic concerns, which at the time included inflation and the recession sparked by the oil crisis of the 1970s. Cold War politics invariably entered the group's agenda.

Economic Organizations While there are no formal criteria for membership, member states are expected to be democracies and have highly developed economies. The G8, unlike the United Nations, is not a formal institution, and there is no charter or secretariat. The presidency, a position responsible for planning ministerial meetings and the annual summit, rotates among the member states.

Economic Organizations Currently, the G8 comprises its six charter members, in addition to Canada, which joined in 1976, and Russia, which became a fully participating member by 1998. The EU is a "nonenumerated" ninth member; represented by the presidents of the European Council and European Commission, the EU participates as an equal. The aggregate GDP of G8 states makes up some 50 percent of the global economy. http://www.cfr.org/international-organizations-and-alliances/group-eight-g8-industrialized-nations/p10647

Economic Organizations World Bank The World Bank is like a cooperative, made up of 188 member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. The governors delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest shareholders appoint an executive director, while other member countries are represented by elected executive directors.

Economic Organizations World Bank Time Line http://www.worldbank.org/wb/about/timeline.htm?iframe=true&width=1020&height=620

Economic Organizations International Monetary Fund The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Created in 1945, the IMF is governed by and accountable to the 188 countries that make up its near-global membership.

Economic Organizations International Monetary Fund The IMF has a Managing Director, who is head of the staff and Chairperson of the Executive Board. The Managing Director is appointed by the Executive Board for a renewable term of five years and is assisted by a First Deputy Managing Director and three Deputy Managing Directors. http://www.imf.org/external/about.htm

Economic Organizations International Monetary Fund How does it work? The IMF’s fundamental mission is to ensure the stability of the international monetary system. It does so in three ways: 1) keeping track of the global economy and the economies of member countries 2) lending to countries with balance of payment difficulties and 3) giving practical help to members.

Economic Organizations International Monetary Fund Cooperation and Reconstruction (1944-1971) During the Great Depression of the 1930s, countries attempted to shore up their failing economies by sharply raising barriers to foreign trade, devaluing their currencies to compete against each other for export markets, and curtailing their citizens' freedom to hold foreign exchange. As a result world trade declined sharply (see chart below), and employment and living standards plummeted in many countries. http://www.imf.org/external/about/histcoop.htm

Economic Organizations International Monetary Fund Cooperation and Reconstruction (1944-1971) http://www.imf.org/external/about/histcoop.htm

Economic Organizations International Monetary Fund Cooperation and Reconstruction (1944-1971) The IMF was conceived in July 1944, when representatives of 45 countries meeting in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a framework for international economic cooperation, to be established after the Second World War. They believed that such a framework was necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression. The IMF came into formal existence in December 1945, when its first 29 member countries signed its Articles of Agreement. It began operations on March 1, 1947. Later that year, France became the first country to borrow from the IMF. http://www.imf.org/external/about/histcoop.htm

Economic Organizations International Monetary Fund Cooperation and Reconstruction (1944-1971) The countries that joined the IMF between 1945 and 1971 agreed to keep their exchange rates (the value of their currencies in terms of the U.S. dollar and, in the case of the United States, the value of the dollar in terms of gold) pegged at rates that could be adjusted only to correct a "fundamental disequilibrium" in the balance of payments, and only with the IMF's agreement. This par value system—also known as the Bretton Woods system—prevailed until 1971, when the U.S. government suspended the convertibility of the dollar (and dollar reserves held by other governments) into gold. http://www.imf.org/external/about/histcoop.htm

Economic Organizations International Monetary Fund The End of the Bretton Woods System (1972–81) The system dissolved between 1968 and 1973. In August 1971, U.S. President Richard Nixon announced the "temporary" suspension of the dollar's convertibility into gold. While the dollar had struggled throughout most of the 1960s within the parity established at Bretton Woods, this crisis marked the breakdown of the system. An attempt to revive the fixed exchange rates failed, and by March 1973 the major currencies began to float against each other.

Economic Organizations International Monetary Fund The End of the Bretton Woods System (1972–81) IMF members have been free to choose any form of exchange arrangement they wish (except pegging their currency to gold): allowing the currency to float freely, pegging it to another currency or a basket of currencies, adopting the currency of another country, participating in a currency bloc, or forming part of a monetary union. http://www.imf.org/external/about/histend.htm

Economic Organizations International Monetary Fund Debt and Painful Reforms (1982–89) During the 1970s, Western commercial banks lent billions of "recycled" petrodollars, getting deposits from oil exporters and lending those resources to oil-importing and developing countries, usually at variable, or floating, interest rates. So when interest rates began to soar in 1979, the floating rates on developing countries' loans also shot up. Higher interest payments are estimated to have cost the non-oil-producing developing countries at least $22 billion during 1978–81. At the same time, the price of commodities from developing countries slumped because of the recession brought about by monetary policies.

Economic Organizations International Monetary Fund Debt and Painful Reforms (1982–89) During the 1970s, Western commercial banks lent billions of "recycled" petrodollars, getting deposits from oil exporters and lending those resources to oil-importing and developing countries, usually at variable, or floating, interest rates. So when interest rates began to soar in 1979, the floating rates on developing countries' loans also shot up. Higher interest payments are estimated to have cost the non-oil-producing developing countries at least $22 billion during 1978–81. At the same time, the price of commodities from developing countries slumped because of the recession brought about by monetary policies.

Economic Organizations Beginnings of the IMF http://www.imf.org/external/mmedia/view.aspx?vid=3461099217001

Economic Organizations European Union The European Union is a unique economic and political union between 28 European countries that together cover much of the continent. The EU started as the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands.

Economic Organizations European Union What began as a purely economic union has evolved into an organization spanning policy areas, from climate, environment and health to external relations and security, justice and migration. A name change from the European Economic Community (EEC) to the European Union (EU) in 1993 reflected this. http://europa.eu/about-eu/basic-information/about/index_en.htm

Economic Organizations European Union The EU has delivered more than half a century of peace, stability and prosperity, helped raise living standards and launched a single European currency: the euro. http://europa.eu/about-eu/basic-information/about/index_en.htm

Economic Organizations European Union One of the EU's main goals is to promote human rights both internally and around the world. Human dignity, freedom, democracy, equality, the rule of law and respect for human rights: these are the core values of the EU. http://europa.eu/about-eu/basic-information/about/index_en.htm

Economic Organizations European Union http://one-europe.info/eurographics/european-union-funding

Economic Organizations European Union A History of the European Union https://www.youtube.com/watch?v=XgnXwrsMBUs

Economic Organizations European Union The European Union Explained* https://www.youtube.com/watch?v=O37yJBFRrfg

Economic Organizations Organization of Petroleum Exporting Countries (O.P.E.C.) Beginnings http://www.opec.org/opec_web/en/about_us/24.htm The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Other members include Qatar (1961); Indonesia (1962) – suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994).

Economic Organizations Organization of Petroleum Exporting Countries First OPEC meeting October 14, 1960

Economic Organizations Organization of Petroleum Exporting Countries (O.P.E.C.) Mission http://www.opec.org/opec_web/en/about_us/24.htm OPEC's 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; and a fair return on capital to those investing in the industry. CNBC https://www.youtube.com/watch?v=oEm5OLcbW9Q Learn Liberty https://www.youtube.com/watch?v=ZyQhJEi8fhU

Economic Organizations Organization of Petroleum Exporting Countries (O.P.E.C.)

Economic Organizations