What is the Role of International Organisations?

International organisations are global governing bodies which provide a framework for international cooperation, promote economic growth and stability, and address global challenges. They play a crucial role in shaping and regulating the global economy. Among these are a few major organisations, namely: The World Trade Organisation (WTO), International Monetary Fund (IMF), World Bank, United Nations (UN), and Organisation for Economic Co-operation and Development (OECD).

World Trade Organisation (WTO)

The WTO is an international organisation which ensures that global trade flows as freely as possible, with minimal issues. Governing over 164 member countries, it acts as a regulating body, providing a framework for negotiating trade agreements and solving disputes between economies relating to trade. The WTO goals are aligned with those of globalisation. As a result of their actions, the global economy has seen an annual average of 6% growth in global trade since their inception in 1995.

Additionally, the importance of this organisation's role in settling trade disputes is displayed in 2019 where the WTO ruled that the United States violated international trade rules. This was done as the US was imposing tariffs on steel and aluminium imports. As a result, countries with smaller economies and thus less economic power were helped by the removal of these tariffs.

International Monetary Fund (IMF)

The IMF is an international organisation with the aim to promote global monetary cooperation, financial stability and economic growth. Containing 190 member countries, they provide policy advice and financial support to ensure member countries maintain financial stability. For example, in 2021, the IMF approved $650 billion in Special Drawing Rights (SDRs) to help countries cope with the economic impact of the COVID-19 pandemic.

The IMF also conducts regular assessments of member countries' economies through its Article IV consultations. These consultations provide an opportunity for the IMF to identify potential risks and recommend policy actions to promote economic stability and growth.

World Bank

The World Bank is not only an international organisation but also an international financial institution. They provide loans and grants to developing countries for capital projects and development programs. It has two main goals: to end extreme poverty and promote shared prosperity. This includes aiding in development projects such as new roads and schools. For example, in the 2021 fiscal year, the World Bank committed $98.8 billion in loans, grants, equity investments, and guarantees to its members in light of the COVID-19 pandemic.

United Nations (UN)

The UN is an international organisation that aims to maintain international peace and security among nations. Its economic focus is to promote economic development, including human rights, environmental sustainability and poverty reduction. For example, the United Nations Development Programme (UNDP) works to eradicate poverty, reduce inequalities, and build resilience to crises and shocks.

Organisation for Economic Co-operation and Development (OECD)

The OECD is an international organisation that aims to promote the economic and social well-being of people around the world. Similar to the UN, the OECD seeks to improve economic development among its 38 member countries. Additionally, they provide a platform for governments to share experiences and seek solutions to common problems. For example, the OECD's Base Erosion and Profit Shifting (BEPS) project has helped to address tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. To learn more about the OECD's BEPS program visit their website: OECD BEPS Program