Short Introduction to: WTO, IMF and OECD

The three principle international institutions that influence the global economic relations are World Trade Organization (WTO), the International Monetary Fund (IMF), and the Organization for Economic Co-operation and Development (OECD) (Rose, 2005). WTO is primarily concerned with trade but does not have the biggest effect on trade. The recent recession had weakened the WTO and many countries started implementing preferential trade agreements that may not agree with the WTO (Dieter, 2009). The recession made many managers and policy makers questioned the international institutions ability to control the trade and generate more sales (Dieter, 2009). Globalization call for international finance and trade agreement, and for the same reason, globalization made most of the financial and business crises more global (Arner & Taylor, 2009). The Group of 20 (G20) called for greater consistency and systematic corporations between countries during their London Summit in April 2009. This call came while the WTO and the IMF are in effect but not effective as expected to be (Arner & Taylor, 2009). WTO was developed and was effective ten years ago but the resent recession’s downturn discouraged the organizations and the countries to neglect the trade agreements between them (Dieter, 2009).  Dieter (2009) state that IMF is not as important international organization as it was ten years ago.

Globalizations was and still believed to benefit the producing countries but the recent economical recession made many lose their confidence in OECD although Rose (2005) believe that OECD is the only international institution that that still can influence the pattern of global economic relations. Rose (2005) state that IMF has an agenda but fewer tools to implement it while OECD had legal instruments and tools but could offer fewer incentives.

References:

Arner, D. W., & Taylor, M. W. (2009). The global financial crisis and the financial stability board: Hardening the soft law of international financial regulation. University of New South Wales Law Journal, 32(2), 488-513.

Dieter, H. (2009). The decline of global economic governance and the role of the transatlantic powers. Business & Politics, 11(3), 1-23.