3. The Three Regulatory Pillars of the World Economic Order

3.1 The Three Regulatory Pillars of the World Economic Order

The Bretton Woods system gave birth to three international organisations of paramount importance for International Economic Law.

These are:

  1. The World Trade Organization (WTO) (the successor of the General Agreement on Tariffs and Trade)
  2. The International Monetary Fund (IMF)
  3. The World Bank Group

These are generally perceived as the three main organisations regulating the international economic order.

Activity 4

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Use this animation to find out further information about the Three Regulatory Pillars of the World Economic Order.

An interaction which gives further information on the WTO, IMF and World Bank

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Answer

The Three Regulatory Pillars of the World Economic Order include:

  • The World Trade Organisation: The main functions of the WTO are:
    • To administer WTO agreements
    • To review trade policies of member states acting as a forum for the resolution of international trade disputes
  • The WTO adheres to four principles:
    1. Non-discrimation
    2. Reciprocity eg. mutual tariff reduction
    3. Transparency eg. clear unambiguous trade measures
    4. Fairness eg. restrictions on dumping goods
  • The International Monetary Fund: An international organisation which keeps the global financial nexus under inspection.
  • The IMF does so by observing the world exchange rates and the balance of payments and multilateral payments.
  • The IMF also offers technical assistance to various countries around the world.
  • The World Bank: A set of organisations that strive for the promotion of world development by:
    • Making financial resources available to governments
    • Making financial resources available to private enterprises
    • Stimulating investment flow
    • Providing a forum for resolving disputes arising within the areas of investment

2.2 Multiple choice questions

3.2 Multiple choice questions