International Monetary and Trade Organization

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Brief History of International monetary and tradeorganization

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International Monetary and Trade Organization

  1. 1. International Economic Organization “ How the world survives After Economic Crisis"
  2. 2. The Great Depression and World War II <ul><li>Fall of NYSE in 1929 led to The Great Depression on global economy. </li></ul><ul><li>Rise of Neo-Nationalist party as Fascist and NAZI. </li></ul><ul><li>Decline of international trade </li></ul><ul><li>Increase of tax barrier and tariff. </li></ul><ul><li>Axis Power declared war on Allied Army </li></ul><ul><li>War ended in Europe in 1944, </li></ul><ul><li>and Pacific Front in 1945 after 2 Nuclear bombardments in Japan. </li></ul>
  3. 3. Bretton Woods Agreement <ul><li>Develop from Atlantic Charter 1941 </li></ul><ul><li>United Nations Monetary and Financial Conference for establishment of New World Monetary Policy after WW II at New Hampshire, USA in 1944 </li></ul><ul><li>John Meynard Keynes and Harry Dexter White compromised on Economics theory to rebuild and reform economy after The Great Depression and WWII </li></ul><ul><li>44 Allied nation agreed to found 3 International financial and Trade organization </li></ul><ul><li>IBRD (World Bank Group) </li></ul><ul><li>GATT (WTO) </li></ul><ul><li>IMF </li></ul>
  4. 4. Bretton Woods System <ul><li>Intergovernment intervention </li></ul><ul><li>Reconstruction of Europe (Marshall Plan) </li></ul><ul><li>Fixed exchange rate of currency based on gold standard </li></ul><ul><li>Create global economic security </li></ul><ul><li>Prevent Financial trade deficit </li></ul><ul><li>Open global free market </li></ul><ul><li>US Dollar as the “Reserve Currency” </li></ul>
  5. 5. World Bank Group <ul><li>World Bank Group Headquarter in Washington DC </li></ul><ul><li>Found as International Bank for Reconstruction and Development(IBRD) on 27 December 1945 </li></ul><ul><li>Later merged as World Bank Group with </li></ul><ul><li>IDA : International Development Association </li></ul><ul><li>IFC : International Finance Corporation </li></ul><ul><li>MIGA : Multilateral Investment Guaruntee Agency </li></ul><ul><li>ICSID : International Center for settlement of Investment Disputes </li></ul>
  6. 6. World bank Executives and members <ul><li>President : Robert B. Zoellick </li></ul><ul><li>Board of Executive Director </li></ul><ul><li>Economy size of nation scaled as World Bank share and voting power. </li></ul><ul><li>USA as largest 16.41% </li></ul><ul><li>Japan 7.81% </li></ul><ul><li>Germany 4.49% </li></ul><ul><li>Great Britain and France 4.31% </li></ul><ul><li>Members </li></ul><ul><li>38 Founding members in 1945 </li></ul><ul><li>185 IBRD members </li></ul><ul><li>168 IDA members </li></ul><ul><li>181 IFC members </li></ul><ul><li>173 MIGA members </li></ul><ul><li>143 ICSID members </li></ul><ul><li>Only IBRD members can join other part of World Bank executive position. </li></ul><ul><li>IBRD member also count as IMF member. </li></ul><ul><li>Latest member : Montenegro </li></ul><ul><li>Member in apply : Greenland </li></ul><ul><li>All UN members except : North Korea, Cuba, Monaco, Andorra, Liechtenstein, Nauru, Tuvalu. </li></ul>
  7. 7. Missions and Functions <ul><li>Mission on Millennium Development Goals </li></ul><ul><li>Build capacity of government and officials </li></ul><ul><li>Infrastructure creation </li></ul><ul><li>Development of financial system </li></ul><ul><li>Combating corruption </li></ul><ul><li>Research, consultancy and training </li></ul><ul><li>IBRD : offer 15-20 years loan to developing country for infrastructure and education building, Issue AAA- bonds and fundraising. </li></ul><ul><li>IDA : offer 35-40 years loan with 10 years of interest-free and grants. </li></ul><ul><li>IFC : offer corporate loans and local investment. </li></ul><ul><li>MIGA : Insurance on non-investment and trade risks. </li></ul><ul><li>ICSID : Information support, analysis and data research. </li></ul>
  8. 8. World Bank and Thailand <ul><li>Kingdom of Siam joined IBRD membership on May 3 1949 </li></ul><ul><li>First development loan for infrastructure rebuilding in 1950 </li></ul><ul><li>Total loan for Thailand around 1950-2003 is 7,000 M$ and 90 M$ grant </li></ul><ul><li>Loans from World Bank used for Dam building, University establishments, highway construction and accommodation improvements </li></ul><ul><li>IFC issue corporate loans to BTS and Bamrungrat Hospital </li></ul><ul><li>Nowadays, Thailand is out of World Bank loans and change to state of co-operation for development after total loan repaid in 2003 </li></ul>
  9. 9. Criticism <ul><li>US dominance on president nomination </li></ul><ul><li>Anti-pluralism and local education </li></ul><ul><li>Allegation on MNC interest supporting </li></ul><ul><li>Issue loans and grants to Military dictatorship government </li></ul><ul><li>President scandals and sexual harassment </li></ul><ul><li>Neo-cons and Neo-libs intervention </li></ul>
  10. 10. International Monetary Fund (IMF) <ul><li>Found on July 1944 after Bretton Woods Agreement </li></ul><ul><li>Operation in 1947 as specialized Agency of UN </li></ul><ul><li>Headquarter in Washington DC </li></ul>
  11. 11. IMF Executives and members <ul><li>Managing Director : Dominique Strauss Kahn </li></ul><ul><li>Executive directors council from member nations </li></ul><ul><li>Voting power from supporting fund by gold reserve </li></ul><ul><li>EU has largest voting power </li></ul><ul><li>USA as second but biggest single nation power 7.09% </li></ul><ul><li>39 founding members after Bretton woods, 1944 </li></ul><ul><li>27 operation members after establishment in 1947 </li></ul><ul><li>185 actual members </li></ul><ul><li>IBRD members count as IMF members </li></ul>
  12. 12. Missions and Functions <ul><li>Challenge current missions </li></ul><ul><li>Addressing global financial crisis </li></ul><ul><li>Limiting high food and fuel price impact </li></ul><ul><li>Getting sovereign wealth fund consensus </li></ul><ul><li>Reducing global payment imbalance </li></ul><ul><li>Stabilizing global exchange rate </li></ul><ul><li>Tracking global trend </li></ul><ul><li>Analyzing economic impact of global warming </li></ul><ul><li>Organization functions </li></ul><ul><li>Surveillance economic and financial development </li></ul><ul><li>Issue loans to country with financial crisis </li></ul><ul><li>Provide technical assistance </li></ul><ul><li>Research and collect statistic data </li></ul><ul><li>Create standard and code </li></ul><ul><li>Fight against money laundering and terrorism </li></ul><ul><li>Fundraising from bonds and gold reserve guarunteed </li></ul>
  13. 13. Getting help from IMF? <ul><li>Structural Adjustment Program(SAP) </li></ul><ul><li>Stabilization </li></ul><ul><li>De-regulation </li></ul><ul><li>Liberalization </li></ul><ul><li>Privatization </li></ul>
  14. 14. IMF and Thailand <ul><li>Joined membership on May 3 1949 </li></ul><ul><li>Bank of Thailand director as Executive director </li></ul><ul><li>stand-by loan 4,431 M$ from 1978-2003 </li></ul><ul><li>Tom yam koong crisis structural adjustment program 2,500 M$ </li></ul><ul><li>Total repaid in July 2003 before deadline 2 year </li></ul><ul><li>Join NAB to lending for IMF 340M$ in 2003 </li></ul>
  15. 15. Criticism <ul><li>Conditionalities order </li></ul><ul><li>US dollar dominance </li></ul><ul><li>Failure in Argentina and Thailand cases </li></ul><ul><li>Loan scandals </li></ul><ul><li>Dictatorship support </li></ul><ul><li>Covered high-impact research data </li></ul><ul><li>Opposed by Anti-globalization group </li></ul>
  16. 16. World Trade Organization <ul><li>WTO replaced GATT(General Agreement on Tariff and Trade on January 1 1995 </li></ul><ul><li>Driven from GATT Uruguay round negotiation </li></ul><ul><li>Now ongoing in Doha round </li></ul><ul><li>Headquarter in Geneva, Switzerland </li></ul>
  17. 17. Development from GATT <ul><li>1 st GATT Negotiation in Geneva : signing GATT and concessions of 45,000 tariffs in 23 countries </li></ul><ul><li>2 nd Annecy round, France </li></ul><ul><li>3 rd in Torquay round, England : cut 25% tariffs </li></ul><ul><li>4 th in Geneva II round : admission of Japan </li></ul><ul><li>5 th Dillon round, Geneva </li></ul><ul><li>6 th Kennedy round, Geneva : anti-dumping issue </li></ul><ul><li>7 th Tokyo round, Japan : non-tariff measure and framework agreements </li></ul><ul><li>8 th Uruguay round, Uruguay : declaration of WTO, intellectual property </li></ul><ul><li>9 th Doha round, Qatar : transformation and unification of global trade, Labor standard, investment transparency, patents </li></ul>
  18. 18. WTO Ministerial conference <ul><li>1 January 1995 WTO establishment in Marrakesh Agreement </li></ul><ul><li>Singapore conference 1996, Singapore </li></ul><ul><li>Geneva conference 1998, Switzerland </li></ul><ul><li>Seattle conference 1999, USA </li></ul><ul><li>Doha conference 2001, Qatar </li></ul><ul><li>Cancun conference 2003, Mexico </li></ul><ul><li>Hong Kong conference 2005, Hong Kong </li></ul>
  19. 19. WTO Executives and structure
  20. 20. WTO members <ul><li>23 Founding members from GATT </li></ul><ul><li>81 Founding members in WTO declaration 1995 </li></ul><ul><li>153 actual members </li></ul><ul><li>Latest members : Ukraine and Cape Verde Island, joined on May 16 2008 </li></ul><ul><li>Members in Power : People’s Republic of China, EU, USA, Japan, India, Brazil, Russia, Germany, Italy, France, Great Britain </li></ul>
  21. 21. Principles, Missions and Functions <ul><li>WTO Principles on Trade and Tariff </li></ul><ul><li>Non-discrimination </li></ul><ul><li>Reciprocity </li></ul><ul><li>Binding and enforceable commitments </li></ul><ul><li>Transparency </li></ul><ul><li>Safety valve </li></ul><ul><li>Missions </li></ul><ul><li>Free Trade on Goods </li></ul><ul><li>Free Trade on Services </li></ul><ul><li>Prevent violation on Intellectual property rights </li></ul><ul><li>Functions </li></ul><ul><li>Oversees trade agreements </li></ul><ul><li>Provides forum for negotiations </li></ul><ul><li>Decrease trade barricades </li></ul><ul><li>Panel over trade conflict between member nation </li></ul><ul><li>Providing information </li></ul>
  22. 22. WTO Important Agreements <ul><li>Agreement on Agriculture(AoA) </li></ul><ul><li>General Agreement on Trade in Services(GATS) </li></ul><ul><li>Trade-Related Aspect on Intellectual Property Rights(TRIPS) </li></ul><ul><li>Sanitary an Phyto-Sanitary Agreement(SPS) </li></ul><ul><li>Agreement on Technical Barrier to Trade(TBT) </li></ul>
  23. 23. WTO Groups for Negotiation <ul><li>Cairns : Agricultural export countries </li></ul><ul><li>G-10 : Largest Agricultural products importer </li></ul><ul><li>ACP : African Caribbean and Pacific countries </li></ul><ul><li>LDCs : Least Developing Countries </li></ul><ul><li>LLDC : Landlocked Developing Countries </li></ul><ul><li>Core Group : Developed Countries on Services negotiation </li></ul><ul><li>AD Friends : Countries effected by Anti-Dumping Agreement </li></ul><ul><li>GI : Geological Indication goods </li></ul><ul><li>C-4 : 4 African countries on Cotton issue </li></ul><ul><li>NAMA-11 : Non-Agricultural Market Access(Mining, Forestry, Fishing and Manufacturing Goods) </li></ul><ul><li>Friends of Fish : Anti Over-fishing and whale hunting </li></ul>
  24. 24. WTO and Thailand <ul><li>Thailand joined WTO on December 28 1994 </li></ul><ul><li>59 th membership, as founding member </li></ul><ul><li>Decrease 2,300 Tariff and trade barrier from 1994-2005 </li></ul><ul><li>Allied with CAIRNS in AoA </li></ul><ul><li>Allied with Norway Canada and Japan in AD Friends Group to negotiate AD Agreements </li></ul><ul><li>Allied with EU and India in GI </li></ul><ul><li>Allied with Developing countries in Doha, Cancun and Hong Kong </li></ul><ul><li>Conflict and concillation in Tuna Export to EU </li></ul><ul><li>Shrimp export to EU and USA negotiation </li></ul><ul><li>Nominate Dr.Supachai Panitchpakdi for Director-General in 2002 </li></ul><ul><li>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 </li></ul>
  25. 25. Controversial Issue and Criticism <ul><li>Conflict between developing countries and developed countries </li></ul><ul><li>Anti-dumping policy </li></ul><ul><li>Farmers support </li></ul><ul><li>Intellectual property rights </li></ul><ul><li>Software piracy </li></ul><ul><li>Natural resource consumption </li></ul><ul><li>Global warming effects </li></ul><ul><li>Unrepresentative decision making </li></ul><ul><li>Conditional requirements of membership </li></ul><ul><li>Less interested in Labor and human right problems </li></ul><ul><li>Underestimate environmental topics </li></ul><ul><li>Protect developed countries benefits </li></ul><ul><li>Violation on protesters </li></ul>
  26. 26. References <ul><li>http://www.worldbank.or.th </li></ul><ul><li>http://www.worldbank.org </li></ul><ul><li>http://en.wikipedia.org/wiki/World_Bank </li></ul><ul><li>http://www.midnightuniv.org/midnighttext/009908756 . html </li></ul><ul><li>http://www.imf.org/external/ </li></ul><ul><li>http://www.imf.org/external/country/THA/index.htm </li></ul><ul><li>http://www.bot.or.th/Thai/AboutBOT/index/Pages/IMF_index.aspx </li></ul><ul><li>http://en.wikipedia.org/wiki/IMF </li></ul><ul><li>http://www.wto.org/english/thewto_e/thewto_e.htm </li></ul><ul><li>http://www.thailandwto.org/ </li></ul><ul><li>http://www.mfa.go.th/web/1242.php </li></ul><ul><li>http://isc.ru.ac.th/data/PS0003985.doc </li></ul><ul><li>http://www.nidambe11.net/ekonomiz/document/worldtrade_org.doc </li></ul>

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