International Economic

Organization

“How the world survives After Economic Crisis"

The Great Depression and World War II

Fall of NYSE in 1929 led to The Great Depression on global economy. Rise of Neo-Nationalist party as Fascist and NAZI. Decline of international trade Increase of tax barrier and tariff. Axis Power declared war on Allied Army War ended in Europe in 1944, and Pacific Front in 1945 after 2 Nuclear bombardments in Japan.

Bretton Woods Agreement

Develop from Atlantic Charter 1941

United Nations Monetary and Financial Conference for establishment of New World Monetary Policy after WW II at New Hampshire, USA in 1944

John Meynard Keynes and Harry Dexter White compromised on Economics theory to rebuild and reform economy after The Great Depression and WWII

44 Allied nation agreed to found 3 International financial and Trade organization

IBRD (World Bank Group) GATT (WTO) IMF

Bretton Woods System

Intergovernment intervention Reconstruction of Europe (Marshall Plan) Fixed exchange rate of currency based

on gold standard Create global economic security Prevent Financial trade deficit Open global free market US Dollar as the “Reserve Currency”

World Bank Group

World Bank Group Headquarter in Washington DC Found as International Bank for Reconstruction and

Development(IBRD) on 27 December 1945 Later merged as World Bank Group with IDA : International Development Association IFC : International Finance Corporation MIGA : Multilateral Investment Guaruntee Agency ICSID : International Center for settlement of Investment

Disputes

World bank Executives and members

President : Robert B. Zoellick Board of Executive Director Economy size of nation scaled

as World Bank share and voting power.

USA as largest 16.41% Japan 7.81% Germany 4.49% Great Britain and France 4.31%

Members 38 Founding members in 1945 185 IBRD members 168 IDA members 181 IFC members 173 MIGA members 143 ICSID members Only IBRD members can join

other part of World Bank executive position.

IBRD member also count as IMF member.

Latest member : Montenegro Member in apply : Greenland All UN members except : North

Korea, Cuba, Monaco, Andorra, Liechtenstein, Nauru, Tuvalu.

Missions and Functions Mission on Millennium

Development Goals Build capacity of

government and officials Infrastructure creation Development of financial

system Combating corruption Research, consultancy and

training

IBRD : offer 15-20 years loan to developing country for infrastructure and education building, Issue AAA- bonds and fundraising.

IDA : offer 35-40 years loan with 10 years of interest-free and grants.

IFC : offer corporate loans and local investment.

MIGA : Insurance on non-investment and trade risks.

ICSID : Information support, analysis and data research.

World Bank and Thailand Kingdom of Siam joined IBRD

membership on May 3 1949 First development loan for

infrastructure rebuilding in 1950

Total loan for Thailand around 1950-2003 is 7,000 M$ and 90 M$ grant

Loans from World Bank used for Dam building, University establishments, highway construction and accommodation improvements

IFC issue corporate loans to BTS and Bamrungrat Hospital

Nowadays, Thailand is out of World Bank loans and change to state of co-operation for development after total loan repaid in 2003

Criticism

US dominance on president nomination Anti-pluralism and local education Allegation on MNC interest supporting Issue loans and grants to Military

dictatorship government President scandals and sexual

harassment Neo-cons and Neo-libs intervention

International Monetary Fund (IMF)

Found on July 1944 after Bretton Woods Agreement

Operation in 1947 as specialized Agency of UN

Headquarter in Washington DC

IMF Executives and members

Managing Director : Dominique Strauss Kahn

Executive directors council from member nations

Voting power from supporting fund by gold reserve

EU has largest voting power USA as second but biggest

single nation power 7.09%

39 founding members after Bretton woods, 1944

27 operation members after establishment in 1947

185 actual members IBRD members count as

IMF members

Missions and Functions Challenge current

missions Addressing global financial

crisis Limiting high food and fuel

price impact Getting sovereign wealth

fund consensus Reducing global payment

imbalance Stabilizing global exchange

rate Tracking global trend Analyzing economic impact

of global warming

Organization functions Surveillance economic and

financial development Issue loans to country with

financial crisis Provide technical assistance Research and collect

statistic data Create standard and code Fight against money

laundering and terrorism Fundraising from bonds and

gold reserve guarunteed

Getting help from IMF?

Structural Adjustment Program(SAP)

Stabilization De-regulation Liberalization Privatization

IMF and Thailand Joined membership on

May 3 1949 Bank of Thailand director

as Executive director stand-by loan 4,431 M$

from 1978-2003 Tom yam koong crisis

structural adjustment program 2,500 M$

Total repaid in July 2003 before deadline 2 year

Join NAB to lending for IMF 340M$ in 2003

Criticism

Conditionalities order US dollar dominance Failure in Argentina and Thailand cases Loan scandals Dictatorship support Covered high-impact research data Opposed by Anti-globalization group

World Trade Organization

WTO replaced GATT(General Agreement on Tariff and Trade on January 1 1995

Driven from GATT Uruguay round negotiation Now ongoing in Doha round Headquarter in Geneva, Switzerland

Development from GATT 1st GATT Negotiation in Geneva : signing GATT and

concessions of 45,000 tariffs in 23 countries 2nd Annecy round, France 3rd in Torquay round, England : cut 25% tariffs 4th in Geneva II round : admission of Japan 5th Dillon round, Geneva 6th Kennedy round, Geneva : anti-dumping issue 7th Tokyo round, Japan : non-tariff measure and framework

agreements 8th Uruguay round, Uruguay : declaration of WTO,

intellectual property 9th Doha round, Qatar : transformation and unification of

global trade, Labor standard, investment transparency, patents

WTO Ministerial conference

1 January 1995 WTO establishment in Marrakesh Agreement

Singapore conference 1996, Singapore Geneva conference 1998, Switzerland Seattle conference 1999, USA Doha conference 2001, Qatar Cancun conference 2003, Mexico Hong Kong conference 2005, Hong Kong

WTO Executives and structure

WTO members

23 Founding members from GATT 81 Founding members in WTO

declaration 1995 153 actual members Latest members : Ukraine and Cape

Verde Island, joined on May 16 2008 Members in Power : People’s Republic

of China, EU, USA, Japan, India, Brazil, Russia, Germany, Italy, France, Great Britain

Principles, Missions and Functions WTO Principles on

Trade and Tariff Non-discrimination Reciprocity Binding and enforceable

commitments Transparency Safety valve

Missions Free Trade on Goods Free Trade on Services Prevent violation on

Intellectual property rights Functions Oversees trade agreements Provides forum for

negotiations Decrease trade barricades Panel over trade conflict

between member nation Providing information

WTO Important Agreements

Agreement on Agriculture(AoA) General Agreement on Trade in

Services(GATS) Trade-Related Aspect on Intellectual

Property Rights(TRIPS) Sanitary an Phyto-Sanitary

Agreement(SPS) Agreement on Technical Barrier to

Trade(TBT)

WTO Groups for Negotiation Cairns : Agricultural export countries G-10 : Largest Agricultural products importer ACP : African Caribbean and Pacific countries LDCs : Least Developing Countries LLDC : Landlocked Developing Countries Core Group : Developed Countries on Services negotiation AD Friends : Countries effected by Anti-Dumping

Agreement GI : Geological Indication goods C-4 : 4 African countries on Cotton issue NAMA-11 : Non-Agricultural Market Access(Mining,

Forestry, Fishing and Manufacturing Goods) Friends of Fish : Anti Over-fishing and whale hunting

WTO and Thailand Thailand joined WTO on December 28 1994 59th membership, as founding member Decrease 2,300 Tariff and trade barrier from 1994-2005 Allied with CAIRNS in AoA Allied with Norway Canada and Japan in AD Friends Group to

negotiate AD Agreements Allied with EU and India in GI Allied with Developing countries in Doha, Cancun and Hong Kong Conflict and concillation in Tuna Export to EU Shrimp export to EU and USA negotiation Nominate Dr.Supachai Panitchpakdi for Director-General in 2002 After failure of Cancun ministerial conference, Thailand opened

FTA in dual co-operation with People’s Republic of China, USA, Japan, Australia, Latin-America and India in ACD, APEC and ASEAN+3 forum

Controversial Issueand Criticism Conflict between

developing countries and developed countries

Anti-dumping policy Farmers support Intellectual property

rights Software piracy Natural resource

consumption Global warming effects

Unrepresentative decision making

Conditional requirements of membership

Less interested in Labor and human right problems

Underestimate environmental topics

Protect developed countries benefits

Violation on protesters

References http://www.worldbank.or.th http://www.worldbank.org http://en.wikipedia.org/wiki/World_Bank http://www.midnightuniv.org/midnighttext/009908756.html http://www.imf.org/external/ http://www.imf.org/external/country/THA/index.htm http://www.bot.or.th/Thai/AboutBOT/index/Pages/

IMF_index.aspx http://en.wikipedia.org/wiki/IMF http://www.wto.org/english/thewto_e/thewto_e.htm http://www.thailandwto.org/ http://www.mfa.go.th/web/1242.php http://isc.ru.ac.th/data/PS0003985.doc http://www.nidambe11.net/ekonomiz/document/

worldtrade_org.doc