1.3

• International Monetary Fund (IMF)

  An organization of 190 member countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world
• IMF's main goal


  To help countries which were in trouble at the time (Economy of that country is collapsed or their currency was threatened) and who could not obtain money by any means. IMF therefore serves as a lender or a last resort for countries which needed financial assistance
• IMF and World Bank were founded after the World War II and their establishment was mainly because of peace advocacy after the war
• IMF and World Bank

  • Both are banks, and started by countries
  • Most of the world's countries were members of these institutions
  • The richest countries were those who handled most of the financing and those who had the greatest influence since they owned most of the wealth of the world
• World Bank


  An international financial institution that provides loans and grants to the governments of low and middle income countries to help reduce poverty
• World Bank's approach


  More long term, its main goals revolved around the eradication of poverty and it funded specific projects that helped them reach their goals, especially in poor countries
• The reputation of IMF and World Bank have been dwindling due to practices such as lending the corrupt governments or even dictators and imposing ineffective austerity measures to get their money back
• Since IMF and World Bank lend money to weaker states


  They also have a say or control over the policy or programs of these weaker states to the extent that these programs that they may suggest are ineffective to the weaker states
• IMF and World Bank

  • IMF deals with short-term macroeconomic issues
  • World Bank focuses on long-term development projects
  • IMF provides financial assistance to countries facing balance of payments
  • World Bank offers loans and grants for development projects
• Organisation for Economic Co-operation and Development (OECD)


  An international organisation that works to build better policies for better lives
• OECD


  • Has 38 member countries where they collaborate to improve the global economy, promote world trade, and to find solutions to common issues or problems
  • The most encompassing club or the richest countries in the world
  • Highly influential despite the group having little power
  • Provides "evidence-based international standards"
  • Finds "solutions to a range of social, economic and environmental challenges"
  • A "unique forum knowledge hub for data and analysis, exchange of experiences, best-practice sharing, and advice on public policies and international standard-setting"
• Organization of Petroleum Exporting Countries (OPEC)


  A group of countries that produce a lot of oil. They team up to make decisions about things like how much oil to produce and how much it should cost. By working together, they try to keep oil prices stable and make sure their countries earn enough money from selling oil
• OPEC was originally comprised of Saudi Arabia, Iraq, Kuwait, Iran and Venezuela in 1960. They are all part of the major exporters of oil in the world. It was formed because member countries wanted to increase the price of oil. United Arab Emirates, Algeria, Libya, Nigeria, Angola, Congo, Equatorial Guinea and Gabon are additional members. (13 members)
• European Union (EU)


  A political and economic union of 27 European countries. The EU was founded in 1993 by the Maastricht Treaty, with the aim of achieving peace and cooperation in Europe. The EU has a common currency, the euro, which is used by 19 of its member states
• The EU also promotes the free movement of people, goods, services, and capital among its members. The EU grew out of a desire to strengthen economic and political cooperation throughout the continent of Europe in the wake of World War II
• The European Union (EU) is made up of 28 member states but later on had only 27 members due to Brexit. Most members in the Eurozone (19) adopted the "euro" as basic currency but some Western European nations like the Great Britain , Sweden, and Denmark did not. Critics of EU argue that "euro" increased the prices in Eurozone and resulted in depressed economic growth rates, like in Greece, Spain and Portugal. Maybe the reason is they did not cope with the changes in pricesas aresult of adopting the currency of EU
• North American Free Trade Agreement (NAFTA)


  A trade agreement between Canada, Mexico, and the United States, designed to eliminate tariffs and facilitate trade among the member countries. Aimed to create a trilateral trade bloc in North America, fostering economic growth and job creation

  
• NAFTA was first created in 1989 with only Canada and the US as trading partners and then Mexico joined in 1994
• NAFTA and EU


  • NAFTA was created to promote economic cooperation and prevent conflict, while the EU encompasses a wide range of areas beyond trade
  • NAFTA's primary goal is to eliminate trade barriers and facilitate the movement of goods across borders, while the EU does not involve a common currency and uses the Euro (€) as their currency
  • NAFTA aims to create free trade zones and foster economic growth, while the EU focuses on trade and investment