How does the USA maintain power / influence

today?

International OrganisationsDecision Making on a Global

Scale

Learning Objectives

• To understand what Inter-governmental Organisations are and what they do

• To understand the impact of IGOs• To assess the role of IGOs in

promoting superpowers

International Organisations or Intergovernmental

Organisations - IGOs• Make key decisions about

– World economy– Conflicts– Environmental issues

• Small number of key players on IGOs• Often created by superpowers post war as a way

to promote cooperation and reduce conflict• Critics say created by superpowers for

superpowers• Some key IGOs include United Nations, NATO &

Davos Group

Who are likely to be the key

players?

Power in IGOs

• Big overlap in membership of IGOs• USA, EU dominate many – allows

IGOs focus to follow their interests• Often have a veto• Lot of mutual support – has effect of

a block vote • USA and EU work together to

promote or block policies they favour

United Nations

• Created 1945• Promote peace and cooperation• Headquarters in New York• Annual budget $1.8 billion• 16 specialised agencies withheadquarters in France, ItalyCanada & Switzerland

Logo

The UN General Assembly

• The core institution of the UN• Each country represented there by their

ambassador• Discuss international issues to try to

resolve conflict by political means• One member one vote• Decisions made by simple majority• Debate issues such as international

conflicts, disarmament, human rights, refugee issues etc

• Decisions are NOT legally binding but they have the weight of international opinion

UK at the UN

• Who is the UK ambassador to the UN?

Ambassador Mark Lyall Grant

The UN Security Council• Under UN Charter the Security Council

has the main responsibility to maintain international peace and security

• USA, UK, France, China & Russia – 5 Permanent members of 15 nation council

• 10 others rotate on a 2 year cycle• The General Assembly make

recommendations but the security council can direct nations to take action

1. It can apply sanctions2. Send countries to The International Court3. Send peace keeping troops

They have a VETO – a right to reject resolutions. To be effective ALL must

agree

How can the security council be seen to be a form of political imperialism?

United Nations Secretary General

Ban Ki-moon

Who am I?What is my

job?

UN Members and Paymasters

Who pays most to fund the UN?

What impact might that have?

Greenland & Western Sahara among the few non UN members

UN Agencies

Do you know the following UN agencies?

FAO UNESCO

WHO UNICEF

The UN at work

Controller of trade• The World Trade Organization (WTO)

is an intergovernmental organization based in Geneva, Switzerland that "deals with the rules of trade between nations at a global or near-global level."  Born in 1995 under the Marrakesh Agreement, the WTO continues the liberalization process started by the now defunct General Agreement on Tariffs and Trade (GATT from 1947) and is currently comprised of 153 countries.

• The WTO’s overriding objective is to help trade flow smoothly, freely, fairly and predictably.

• It does this by: Administering trade agreements• Acting as a forum for trade negotiations• Settling trade disputes• Reviewing national trade policies• Assisting developing countries in trade policy

issues, through technical assistance and training programmes

• Cooperating with other international organizations

• The WTO has nearly 150 members, accounting for over 97% of world trade. Around 30 others are negotiating membership.

• Decisions are made by the entire membership. This is typically by consensus. A majority vote is also possible but it has never been used in the WTO, and was extremely rare under the WTO’s predecessor, GATT. The WTO’s agreements have been ratified in all members’ parliaments.

• The WTO’s top level decision-making body is the Ministerial Conference which meets at least once every two years.

• Below this is the General Council (normally ambassadors and heads of delegation in Geneva, but sometimes officials sent from members’ capitals) which meets several times a year in the Geneva headquarters. The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body.

• At the next level, the Goods Council, Services Council and Intellectual Property (TRIPS) Council report to the General Council.

• Numerous specialized committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development, membership applications and regional trade agreements.

Free trade has come to dominate trading, since WTO in 50sThey removed a) Tax and tariffs on importsb) Quotas (numbers of) on importsc) Subsidies for domestic producersOn certain itemsThis has resulted in huge growth in trade and wealth, some

nations have benefited whereas others have lost out. In Asia most have benefited but most African nations have seen trade decline

Reasons for this are- 1) that trade is mainly in hands of TNCs- who have chosen

to invest in China and India not Sub Saharan African nations

2) In Asia free trade zones have been set up to attract by offering tax breaks, non union areas and limited regulation

3) Many African nations are unattractive to TNC investment due to poor infrastructure

http://www.wto.org/english/thewto_e/countries_e/org6_map_e.htm

• Trade has become freer but it’s still just an illusion for many nations

• Much of ‘global’ trade takes place within trade blocs- powerful ones like NAFTA and the EU, in these blocks there are no tariffs so bigger profit can be made

• Countries not involved in trade blocs always lose out as they have taxes and tariffs to pay

What is the IMF?

• The IMF (International Monetary Fund) formed in 1944

• Stabilise currencies after WW2• Created by 44 rich countries to help

those in debt• Intended to prevent poverty & so

limit the spread of communism• In 2009 has 185 members

• Not all members are equal• The G20 have 70% of the votes• The USA has 17% of votes as the

biggest investor• EU nations have 25% while BRICS

have 9.7%• Most of the poorest African nations

have 1% between them

How does the IMF work?

Is it right that the BRIC nations have so little

voting power?

• IMF reflects US & EU interests• Used £ to promote fight against

communism• But imposed conditions that led to

LEDCs to have to cut health & education budgets so they could cut their debt

Why do some people think the IMF is a tool of

economic Imperialism?

The world bank

• Formed in same place and at time of IMF• First loan was to France for post war reconstruction• Mainly used today for natural disasters and

humanitarian emergencies• In the 50s helped finance post colonial states• In 70s and 80s developed bad reputation for

funding environmentally damaging projects or lending amounts countries could not afford to repay

• Now its aim is to eliminate poverty achieving MDG number 1- reducing debt

• Controlled in same way as IMF, by proportional votes, meaning a western centred ideology and balance in favour of them

Singapore- • received investment to prevent communism conversion

in 1945, Singapore captured during WW2, USA encouraged rebuilding of the Japanese inflicted damage through investment and loans

• Singapore rapidly recovered, it became one of the original 4 tigers (quick growing South East Asian economies during the 1970s

World Bank and IMF successes

• Japan- devastated at end of WW2 Allies wanted to

encourage Japan’s recovery as they were worried USSR would try to invade and instil communism, so Japan did

i. Gained loans and grants from the world bank and IMF

ii. Handed back territory acquired after 1894iii. Put right to vote in place removing the emperor

system of governanceiv. Forbade Japan to ever lead war overseas or

maintain an armyv. Broke up powerful interest groups• There was social unrest BUT Japan experienced

rapid recovery, living standards were raised and political situation stabilised

• By the 1970s Japan overtook USSR as world’s second largest economy

The Davos Group or WEF

• Swiss based non-profit making foundation

• ‘Entrepreneurship in the global public interest’

• Focus business & profit• Invitation only meeting• Who goes?

Business CEOsAcademicsPolitical LeadersIGO representativesThe media

The Davos Group or WEF• WEF is criticised by

anti- globalisation campaigners

• They say capitalism = inequality

• Bono called it ‘fat cats in the snow’

• Has no official status but attracts lots of publicity and Hollywood stars

Question

Outline the positives and negatives of IGOs

Without these IGOs the USA would have a lot less power? discuss