International organizations and the world economy WTO World Bank IMF NGOs

Levels of development  Developed Nations  Newly Industrialized Nations (NIC)  Less Developed Nations (LDC)

developed nationS Nations with relatively high average of material well-being Maintain an advanced technological infrastructure shutterstock 167522426

NEWLY INDUSTRIALIZED COUNTRY (NIC) ex. SAUDI ARABIA or UNITED ARAB EMIRATES NEWLY INDUSTRIALIZED COUNTRY (NIC) Nations undergoing rapid economic growth but has yet to achieve “complete” development. Much of the population may still be impoverished and/or reliant upon subsistence agriculture. Economic growth may revolve around one major resource or industry (ex. oil) shutterstock 177138194

LESS DEVELOPED COUNTRY (LDC) Nations with relatively low average of material well-being Much of the population is impoverished and reliant upon subsistence agriculture Shutterstock 119623618 Shutterstock 145000435

How do we improve their economies?

MULTINATIONALS Corporations that operate in two or more countries Shutterstock 168042329 Shuterstock 154627589 Shuterstock 162800909

MULTINATIONALS PROPONENTS OPPONENTS cheaper labor means cheaper goods for consumers exploitation of foreign labor with low wages “sweatshops” introduce jobs, technology, and urban growth to LDCs OFFSHORING: lost jobs from developed nation to LDC

INTERNATIONAL ORGANIZATIONS set up to assist economic growth  World Trade Organization (WTO)  World Bank  International Monetary Fund (IMF)  Non-Governmental Organizations (NGOs)

World Trade organization (WTO) A trade agreement among over 100 nations that specifies the level of tariffs among the signatories and attempts to resolve trade disputes WTO shutterstock 60342673

World Trade organization (WTO)  Established in 1995 GATT  159 member countries  Uses the rules agreed to in the General Agreement of Tariffs and Trade (GATT) in 1947, later updated in 1994 and 2001, to settle disputes between countries Shutterstok 172756625

World BANK An international organization that makes loans and provides technical expertise to nations.  188 countries are members of the World Bank  Established in 1944 (after WWII) to help promote trade and develop economic recovery

international monetary fund (IMF) An international organization established to supervise exchange-rate arrangements and to lend money to member countries having difficulties meeting their financial obligations to other countries  188 member countries

international monetary fund (IMF) How does it work?  Surveillance - Monitors country economies and policies to assess risk to global economy  Training - Provides technical assistance with fiscal policy and banking to member countries  Loans - Provides financial assistance to those in trouble of meeting their obligations (loans) (not to begin projects like World Bank does)

NON-governmental organization (ngo) A nonprofit, voluntary organization that works to raise funds to fight poverty, raise humanitarian, environmental, or human rights awareness, and help LDCs build their economies.  Examples include: Shutterstock 106926857 Shutterstock 173869958 Shutterstock 166923161 WWF UNICEF