International Organisations

How have international organisations affected globalisation (overarching argument)?

• They promoted globalisation by lowering barriers and stabilising financial flows

• Aided global convergence

  • Global HDI from 0.60 → 0.75 (1990-2023)

  • Global GINI from 70 → 62 (1990-2023)

• Each has a clear success, a clear failure and a mixed record; since 2018 protectionism and US disengagement have weakened them ("slowbalisation").

List the international organisations and forums in the essay.

1. WTO [EG]

2. IMF [EG]

3. World Bank [ED]

4. United Nations [ED]

5. G20 and G7

6. Trading blocs + FTAs including EU,RCEP, JAEPA [EG + global ED]

WTO: what is its role?

• Founded in 1995, world’s largest multilateral FTA with 166 members

• Role: facilitates trade agreements and resolves disputes

• AD/AS graph with Riccardo’s Theory of Free Trade and Comparative Advantage

WTO: success, failure and verdict?

Success:

• Reduced WAT from 10.1% → 9%

• Trade Facilitation Agreement 2014 has increased trade flows 10-15%

Failure:

• Doha Round 2001 failed to cut agricultural tariffs, 900bn of welfare gains annually lost, 2/3 of which would’ve gone to developing nations

Verdict: Effective earlier, less so now

• Effective early into its induction with world trade increasing four fold but fracturing into coalitions and losing US support with increased nationalistic protection

IMF: what is its role?

1. Provide rescue packages to aid countries with BOP issues

2. Technical assistance

3. Maintain international financial stability

IMF: success, failure and verdict?

Success: Serbia

• 2022 Serbia SBA $3.2bn solve fiscal issues and u/e

Failure: Structural adjustment Policies

• Indonesia GDP dropped 13% in 1998 during AFC due to structural adjustment policies

Verdict: Effective

• ¾ of IMF ventures successful but still a last resort lender. Further, mainly focused on improving ED through EG.

World Bank: what is its role?

Long-term development finance (soft loans, IDA grants) and technical assistance to reduce poverty.

World Bank: success, failure and verdict?

Success: HIPCI debt relief cut Somalia's external debt 64% → 6% of GDP (2018-2023)

Failure: Often donor-driven, less important with private creditors

Verdict: Extreme poverty 38% (1990) → 9% (2019), stalled since COVID. Draw Lorenz Curve and show global GINI decreasing

United Nations: what is its role?

(1945, 193 members)

1. Peace and security

2. Human rights

3. Development goals: MDGs to 2015, SDGs to 2030

United Nations: success, failure and verdict?

Success (MDGs): 2.6 billion gained improved drinking water five years ahead of goal + gender parity in 2/3 of primary schools. Draw Kuznets Inequality Curve.

Failure (SDGs): only 17% of targets on track (2024 SDG Report)

Verdict: Life expectancy 64 → 73 (1990-2019), but no enforcement power and the Security Council veto blocks action

G20 and G7: role, success, failure and verdict?

Role: informal macro coordination; Success (G20): London summit (April 2009) US$1.1 trillion package incl. tripling IMF resources; Failure (G7): excludes China and India, ~30% of world GDP (PPP)†; Verdict: world GDP −0.1% (2009) then +5.4% (2010, IMF)†, weakened by US–China rivalry

Trading blocs: what is the theory?

Blocs increase trade flows and ensure reciprocal low protection between partners but exclude other efficient nations and exclude developing nations.

RCEP: what are the stats and verdict?

Verdict: Beneficial to others more than Australia

1. Posited to increase intra-regional trade by 2%

2. Estimated to put 27 million additional people into the middle class by 2035 → especially in Asian nations

3. However, 9 out of 15 are Aus largest trading partners → minimal benefit since FTAs already established

JAEPA: what are the stats and verdict?

Verdict: Modest impact on the Australian economy

1. Success - Beef exports rose 15% with 97% of tariffs cut

2. Failure - 800% rice tariffs remain so agricultural protection is strong (reduced EG benefits)

3. Overall - Productivity Commission (2010) estimates imapct on national income of FTA is overstated and modest w/ both nations high-income

EU: What are the stats and verdict?

Verdict: Good for those within it, damaging for those excluded

1. Success - Poland GDP increased to 81% of EU average over 20 years it was part of the EU

2. Failure - CET of 10.8% and farmer subsidy receipts at 19% exclude developing agrarian economies