Download chapter 12 International trade organizations

International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
Introduction
Objectives / key terms
Beggar-thy-neighbor
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
United Nations (UN)
UN Conference on Trade and Development (UNCTAD)
Organization of Economic Cooperation and Development (OECD)
Central and Eastern European economic transition process
Jan Tinbergen (1903-1994)
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
The World Trade Organization (WTO/GATT)
The international GATT agreement is based on three principles:
• Non-discrimination; as expressed in two sub-principles
- Most Favored Nation (MFN) treatment
- National treatment of foreign products
Two main exceptions to the non-discrimination principle:
- Free trade areas and customs unions
- Developing countries
• Reciprocity (exception: developing countries)
• Prohibition on trade restriction other than tariffs (exception in case
of balance-of-payments problems)
International Trade & the World Economy;  Charles van Marrewijk
The World Trade Organization (WTO/GATT)
Duration of GATT rounds and number of countries involved.
100
Tokyo
40
Uruguay
Kennedy
Fourth
60
Second
Third
80
First
number of countries at start
120
Dillon
20
0
1945
1955
1965
1975
year
1985
1995
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
The United Nations (UN) and UNCTAD
UN established in 1945, deals with many issues (culture, human
rights, security, etc.); for economics most important ECOSOC:
• Programs and Funds; UNCTAD, UNDP, UNHCR, UNICEF, etc.
• Functional Commissions; Social Development, Human Rights, etc.
• Regional Commissions; ECA, ECE, ECLAC, ESCAP, etc.
• Specialized (independent) Agencies; ILO, FAO, UNESCO, WHO,
WorldBank, IMF.
UNCTAD established out of dissatisfaction with the role of
developing countries in the world economy (Group of 77); publishes
the World Investment Report.
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
Organization for Economic Cooperation & Development, OECD
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
Increasing degree of private control
Case study: economic transition in Central and Eastern Europe
Economic
market
capitalism
transition
socialism
has
different
dimensions
A
socialism /
communism
Increasing degree of private property
welfare
state
International Trade & the World Economy;  Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe
Food
ppf
B
C
A
Manufactures
O
E
D
International Trade & the World Economy;  Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe
GDP/capita (index, 1990 = 100)
140
Poland
120
Hungary
100
Slovak Rep.
80
Russia
60
Ukraine
40
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
International Trade & the World Economy;  Charles van Marrewijk
CHAPTER 12; INT. TRADE ORGANIZATIONS
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
International Trade & the World Economy;  Charles van Marrewijk
Conclusions
GATT, replaced by WTO, deals most directly with international trade
problems (GATT rounds to reduce trade barriers become more
complicated, take longer and involve more countries over the years).
UN organizations affect all aspects of human life; UNCTAD focuses
on problems of developing countries.
OECD is organization of economically more advanced countries.
Adjusting a country’s organizational and institutional framework is
an enormous and time-consuming process, as illustrated by the
Central and Eastern European countries.