5.2.3 International Organizations

Why has globalization expanded so rapidly in recent times?


International connections: The growth and power of international organizations has led to the expansion of globalization. Many global organizations connect people and governments around the world, and many have stated goals of increasing prosperity.

The
United Nations (UN)
an international organization that describes itself as a "global association of governments facilitating co-operation in international law, international security, economic development, and social equity"

The United Nations organizationwas founded in 1945 by 51 countries, and today includes 191 nations, almost every country in the world.
United Nations is a driving force that connects the nations of the world. It provides a global forum for everyone and has led to greater interdependence among nations. The United Nations has the following goals:

  • human rights
  • international law
  • social progress
  • improved living standards
UN General Assembly Hall
Inside the UN
Courtesy of Alex Liivet

Foundation of the United Nations: The League of Nations was formed after World War I as nations struggled to find ways to cooperate and live peacefully. In many ways, the League was a failure, but it did lead to the foundation of the United Nations in 1945. Various world leaders realized that they must learn to live with each other and look for peaceful solutions to conflicts to prevent another world war.

The United Nations was founded in 1945 with the signing of the United Nations Charter by 50 nations. Since then, it has grown to include almost the entire world.

Who belongs to the United Nations?

Almost every independent country is a member of the United Nations. Each member nation is assessed dues that fund the operations of the UN.

Who controls the United Nations?

The United Nations has many components. The General Assembly (presided over by a Secretary-General elected every five years) is the main body, and all nations are represented with one vote each. The current Secretary-General is AntΓ³nio Guterres, who was chosen in January 2017.

The Security Council has ten temporary seats representing the various regions of the world and five permanent members, each of whom has veto power on any UN resolution. The permanent members are China, France, Russia, Great Britain, and the United States Ҁ“ the nations that won World War II. The Security Council is responsible for maintaining world peace and security. Unlike other bodies of the United Nations, its decisions are binding on the UN as a whole.

What does the United Nations do?

The United Nations tries primarily to make the world a better place. The nations of the world have many competing interests. The large membership makes decision-making difficult and slow; decisions are not always satisfactory to all members. The UN has many departments, including the International Court of Justice, UNICEF (the Children's Fund), WHO (the World Health Organization), and others. The United Nations hosts many conferences to discuss world issues.

How successful has it been?

The United Nations has had great success in some areas and less success in others. The concept of one international organization to deal with all the problems in the world is ambitious. Some notable accomplishments include the following:

  • Peacekeeping: The bulk of UN money goes into worldwide peacekeeping. Violent conflict around the world has been reduced substantially since the UN was founded.

  • Human rights: The UN has worked towards international standards in human rights and has made some progress through international pressure on offending nations.

  • Emergency assistance: The UN provides a great deal of assistance in times of emergency; it coordinates international action in times of crisis.

  • Quality of life: The UN's Millennium Development Goals establish targets to reduce poverty and improve conditions for people around the world.

Criticisms of the United Nations: The United Nations is supposed to be a global organization that is dedicated to making life better for all people. This is a challenging goal and difficult to achieve. The UN has been criticized for

  • Inefficiency: The UN sometimes is slow to respond to emerging issues.

  • Lack of power: The United Nations does not have its own army or the legal power to enforce decisions.

  • United Nations Security Council
    a body within the United Nations that is responsible for peace and security among nations

    The Security Council has the power to make decisions, called resolutions, which governments must obey under the United Nations Charter. It has 15 member states, consisting of five permanent seats who hold veto power (China, France, Russia, Britain, and United States) and ten temporary seats that are held for two-year terms on a regional basis. The president's position rotates every month.
    Security Council: The veto power of each of the five permanent members of the Security Council leads to stalemate and inaction on important matters.

  • The United States and the UN: The United States is the only world superpower. The United Nations is designed for
    multilateral
    involving the participation of more than two groups or countries
    multilateral decision-making. This leads to conflicts when decisions made by the UN are not in US interests. The US government has refused to pay its dues to the United Nations for many years. Currently, it owes $1.3 billion to the United Nations.

Reflect


Relevance: Can an international agency with no legal or military power actually represent all people in the world, including those in poor nations? Can it stand up to the United States? Can it establish or enforce world peace and security?

You learned about the Bretton Woods Conference, the World Bank, and the International Monetary Fund in the previous unit.

The IMF is "an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty". With the exception of North Korea, Cuba, and three other small nations, all member countries of the United Nations participate in the IMF in some way.

The IMF was created to prevent economic instability and depression such as the Great Depression of the 1930s. Member countries may request loans. In return, the receiving country is told to make changes, often including a Structural Adjustment or Poverty Reduction Plan, a list of economic reforms it must undertake if it wants a loan. These include actions such as
privatization
the selling of state-owned or government-owned businesses to private investors

For example, the Government of Alberta sold its telephone service to TELUS several years ago.
privatizing government-run industries,
deregulation
the process of removing rules and restrictions on a particular industry

According to those who favour the free market, deregulation should increase competition, improve services, and decrease prices to consumers. However, regulations can benefit consumers and producers.

For example, the Province of Alberta deregulated the electricity industry. In theory, this allows more suppliers to provide electricity to customers, which according to the rules of supply and demand should have reduced the price to consumers. However, producers of electricity did not generate more energy, and costs to consumers have continued to increase to the extent that the government has provided rebates to electricity consumers and has established a maximum on the prices that can be charged.
deregulation of industries, and trade
trade liberalization
the arrangement for people of one country to trade with people in other countries without any restrictions imposed from governments or other agencies

This can include

  • international trade of goods and services without tariffs
  • free movement of labour between countries
  • free movement of capital between countries
  • the absence of taxes, subsidies, regulations, or laws that give domestic companies advantage over foreign companies
liberalization.

How successful has it been? It has been largely successful in smoothing the
business cycle
the boom-and-bust patterns of economic growth and recession that have occurred throughout history
economic cycles of boom and bust.

Who controls the IMF? Although many nations belong to the IMF,
developed country
a country with a relatively high standard of living derived through an industrialized, diversified economy

Countries with very high Human Development Index (HDI) are considered developed countries. This usually coincides with a high gross domestic product (GDP) per capita.
developed nations control it. The executive of the IMF (the people who make decisions) are appointed based on how much money the nation has contributed. In other words, those are the wealthier nations including the European Union, the US, and Canada. The president is always a citizen of Europe.

Examples of the IMF in Action

  • $500 million to help Turkey recover from an earthquake in 1999
  • $13 million to help the Congo recover from civil war in 2000
  • $128 million to support Sri Lanka after the 2005 tsunami

What does the World Bank do? The World Bank was created for the purpose of reconstructing cities and industries damaged during World War II. Its purpose is "to improve the quality of life and extend economic benefits and empowerment broadly throughout societies". It conducts research and provides technical and policy advice and loans to needy countries. Also, it has provided loans to former
Communism
an ideology based on socialism as envisioned by Karl Marx

Marx believed that workers (the proletariat) should revolt against the capitalists (the bourgeoisie) and form a society where the means of production are shared equally by everyone. There should be no private ownership of the means of production.
communist countries as they make the transition to
capitalism
Capitalism is an economic system characterized by private or corporate ownership of property, which focuses on the accumulation of wealth and competition in a free market.
capitalism.

The World Bank provides loans and advice to
developing country
a country with a relatively low standard of living that is less industrialized and tends to have a moderate to low rating on the United Nations Human Development Index

A developing country is less developed in terms of education, health care, literacy, and life expectancy. A strong correlation occurs between low income and high population growth. The economy is usually based on agriculture and natural resources. Most such nations are in the southern hemisphere.

In the past, these countries were considered to be part of the "Third World", but that term is not used much today.

Use with care: Some believe that the term developing country implies inferiority. As well, it also implies that the least wealthy countries of the world are all moving forward in economic growth and social development. In reality, many of the poorest nations of the world are not progressing but they are actually becoming less wealthy.
developing countries in the areas of human development, environmental protection, and government. It provides loans and grants to the poorest countries.

Conditionalities: Loans or grants for specific projects often are conditional on the country adopting capitalist policies, including greater free trade and privatization of government-owned or government-controlled industries and resources. It works in more than 100 developing economies with the primary focus of helping the poorest people and the poorest countries. (Guide to the World Bank)

How successful has it been? The World Bank is one of the most highly regarded financial institutions in the world. It is an expert on international development. It has provided long-term assistance to nations in thousands of projects. It does considerable research into its projects, including environmental impact studies. It evaluates the success of its programs and has many transparency and accountability measures so people can see who benefits and who is responsible for its actions.

Who controls the World Bank?
developed country
a country with a relatively high standard of living derived through an industrialized, diversified economy

Countries with very high Human Development Index (HDI) are considered developed countries. This usually coincides with a high gross domestic product (GDP) per capita.
Developed nations have control of the World Bank. They pay the most into the bank and control its decisions. The president is always a citizen of the United States, appointed by the President of the US. The United States has the most seats and effectively can veto (block) any major decisions.

Other international organizations: Thousands of other international organizations connect people around the world. Sometime these organizations represent people with shared interests or bring people together to solve common problems.

Non-governmental organizations are not a part of any government. They can support humanitarian and environmental goals. Examples include the Red Cross and World Vision, often the first agencies to arrive in disaster areas. For example, after the tsunami hit Indonesia and other parts of the Indian Ocean in January 2004, these two organizations brought assistance quickly to people in need. If they had not done so, future donations and support would be affected.

Sports organizations: Many sports organizations connect the nations of the world through competition. The Olympics is an increasingly popular event. More countries participate in the Olympics (206) than are recognized by the United Nations (195). It connects nations and individuals in a celebration of athleticism, nationalism, and culture.

Other organizations are becoming more and more international, including

  • professional associations
  • unions
  • educational institutions
  • environmental organizations