Superpowers Influence on the Global Economy - IGOs

- Intergovernmental organisations.

- Regional or global organisations whose members are nation states. They uphold treaties and international law, as well as allowing co-operation on issues such as trade, economic policy, human rights, conservation and military operations. 

- The exchange of goods and services free from of import/export taxes and tariffs or quotas on trade volume. 

- Formed in 1944. 

- Stabilise currencies after WW2.

- Created by 44 rich countries to help those in debt and to promote trade in order to reduce poveraty worldwide.

- Intended to prevent poverty and so limit the spread of communism, and promote capitalist ideology. Reflects USA and EU interests.

- In 2020 the membership was updated to 190 members. (However, they are not all equal).

- G20 has 70% of the votes. The USA has 17% of the votes as the biggest invester. EU nations collectively have 25% while BRICSs have 9.7%. The most poorest Africian nations have 1% between them. 

- However, imposed conditions have led to LICs to cutting health and education budgets so they could repay their debt. Another condition was that LICs had to liberalise trade and open up trade with the rest of the world - allowed them to export low value commodites but also allowed TNCs to exploit resources whilst sellign back more expensive manufactured goods. 

- Formerly known as the International Trade Organisation, which included the General Agreement on Tariffs and Trade, but renamed in 1995. 

- Series of trade agreements since the 1950s which have regulated trade and reduced protectionism by removing:

   - Taxes and tariffs on imports.

   - Quotas on imports.

   - Subsidies for domestic producers.

   - Based on comparative advantage.

- Led to huge growth in world trade especially in places such as Asia - China and India.

- Both trade and GDP fell in the late 1920s, before bottoming out in the 1932. After WW2 both have risen exponentially, most of the time with trade outpacing GDP. 

- Makes development loans to developing countires but with a 'free-market' model that promotes exports, trade, industrialisation and private business and so benefits large developed-world TNCs who are attracted to invest by infrastructure projects. 

- Funded $330 billion worth of projects since 1944, when formed. 

- Voting rights vary between category 1 and category 2 countries and between countries - the USA has the highest % of votes at 15%. 

- Origins: Founded 1971. Meets annually at Davos. 

- Role: a Swiss not-for-profit organisation working across national borders to promote public-private cooperation to "improve the state of the world by bringing together business, political, academic and leaders of society to shaoe global, regional, and industry agendas". It discusses corruption, terrorism, economic systems and social issues. 

- Criticisms: Views borders as obstacles. Governments viewed as only functioning to faciliate the elite's global operations. Voters view conflict with its globalised ideas, eg. Brexit.