This document discusses international trade organizations, including the World Trade Organization (WTO), United Nations (UN), UN Conference on Trade and Development (UNCTAD), and Organization for Economic Cooperation and Development (OECD). It also examines the economic transition of Central and Eastern European countries. The WTO/GATT aims to liberalize trade according to principles of non-discrimination, reciprocity, and prohibiting trade restrictions other than tariffs. The UN established several organizations focused on economic issues, and UNCTAD specifically addresses developing country concerns. The OECD consists of economically advanced member countries. Finally, the transition from communism to capitalism in Central and Eastern Europe proved an immense challenge over many years.

1. International Trade & the World Economy; ã 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

2. Explanations for trade
1. The world economy
Classical
2. Opportunity costs
3. Comparative advantage
Neo-classical
4. Production structure
5. Factor prices
6. Production volume
7. Factor abundance
New trade
9. Imperfect competition
10. Intra-industry trade
Policy
8. Trade policy
11. Strategic trade policy
12. Int. trade organizations
13. Economic integration
17. Applied trade policy
modeling
Economic
geography
New interactions
14. Geographical economics
15. Multinationals
16. New goods, growth, and
development
Industrial
organization
International
business
Growth theory
Part IV Part III Part II Part I
18. Concluding remarks

3. International Trade & the World Economy; ã 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

4. Introduction
International Trade & the World Economy; ã Charles van Marrewijk
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)

5. International Trade & the World Economy; ã 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

6. International Trade & the World Economy; ã 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)

7. International Trade & the World Economy; ã Charles van Marrewijk
The World Trade Organization (WTO/GATT)
Duration of GATT rounds and number of countries involved.
120
100
80
60
40
20
0
Third
Kennedy
1945 1955 1965 1975 1985 1995
year
number of countries at start
First
Second
Fourth
Dillon
Tokyo Uruguay

8. International Trade & the World Economy; ã 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

9. International Trade & the World Economy; ã 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.

10. International Trade & the World Economy; ã 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

11. International Trade & the World Economy; ã Charles van Marrewijk
Organization for Economic Cooperation & Development, OECD

12. International Trade & the World Economy; ã 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

13. International Trade & the World Economy; ã Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe
Increasing degree of private control
market
socialism
Increasing degree of private property
capitalism
welfare
state
socialism /
communism
A
Economic
transition
has
different
dimensions

14. International Trade & the World Economy; ã Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe
Manufactures
Food
O
A
B
C
E D
ppf

15. International Trade & the World Economy; ã Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe
140
120
100
80
60
40
Poland
Hungary
GDP/capita (index, 1990 = 100)
Slovak Rep.
Russia
Ukraine
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

16. International Trade & the World Economy; ã 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

17. Conclusions
International Trade & the World Economy; ã Charles van Marrewijk
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.