Economic Organizations

7/31/2019 Economic Organizations

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ECONOMIC ORGANIZATIONS

ASEAN

ESTABLISHMENT

The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand,

with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely

Indonesia, Malaysia, Philippines, Singapore and Thailand.

Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.

AIMS AND PURPOSES

As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:

To accelerate the economic growth, social progress and cultural development in the region throughjoint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a

prosperous and peaceful community of Southeast Asian Nations;

To promote regional peace and stability through abiding respect for justice and the rule of law in therelationship among countries of the region and adherence to the principles of the United Nations

Charter; To promote active collaboration and mutual assistance on matters of common interest in the

economic, social, cultural, technical, scientific and administrative fields;

To provide assistance to each other in the form of training and research facilities in the educational,professional, technical and administrative spheres;

To collaborate more effectively for the greater utilisation of their agriculture and industries, theexpansion of their trade, including the study of the problems of international commodity trade, the

improvement of their transportation and communications facilities and the raising of the living

standards of their peoples;

To promote Southeast Asian studies; and To maintain close and beneficial cooperation with existing international and regional organisations

with similar aims and purposes, and explore all avenues for even closer cooperation among

themselves.

FUNDAMENTAL PRINCIPLES

In their relations with one another, the ASEAN Member States have adopted the following fundamenta

principles, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976:

Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of al

nations;

The right of every State to lead its national existence free from external interference, subversion or coercion;

Non-interference in the internal affairs of one another;

Settlement of differences or disputes by peaceful manner;Renunciation of the threat or use of force; and

Effective cooperation among themselves.

ASEAN COMMUNITY

The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared

vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and

prosperity, bonded together in partnership in dynamic development and in a community of caring societies.

At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be

established.
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At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the

establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the

Establishment of an ASEAN Community by 2015.

The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN

Economic Community and ASEAN Socio-Cultural Community. Each pillar has its own Blueprint, and, together

with the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015),

they form the Roadmap for and ASEAN Community 2009-2015.

WTO

The World Trade Organization (WTO) is an organization that intends to supervise and liberalize internationa

trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing

the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with

regulation of trade between participating countries; it provides a framework for negotiating and formalizing

trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO

agreements which are signed by representatives of member governments:fol.9-10 and ratified by their

parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially

from the Uruguay Round (19861994).

The organization is attempting to complete negotiations on the Doha Development Round, which was

launched in 2001 with an explicit focus on addressing the needs of developing countries. As of June 2012, the

future of the Doha Round remains uncertain: The work programme lists 21 subjects in which the original

deadline of 1 January 2005 was missed (So was the next unofficial target of the end of 2006.) The further

imposition of free trade on industrial goods and services and the protectionism on farm subsidies to domestic

agricultural sector requested from the developed countries, and the substantiation of the internationa

liberalization of fair trade on agricultural products from developing countries remain the major obstacles

These points of contention have hindered any progress to launch new WTO negotiation(s) beyond the Doha

Development Round. As a result of this impasse, there has been an increasing amount of bilateral free trade

agreements.

WTO's current Director-General is Pascal Lamy, who leads a staff of over 600 people in Geneva, Switzerland.

APEC

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally Member

Economies) that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region

Established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of

regional trade blocs in other parts of the world, initially, with the notion to the likely dominance of the sphere

of economic influences of the highly industrialized Japan (a member ofG8) in the Asia-Pacific region and for

the economic interests of Australian agricultural/raw material products to search for new buyers other than

the demand-declining European market, APEC works gradually (to include members of Newly industrialized

economy at the time, although the agenda offree trade was a sensitive issue for the developing NIEs, and for

ASEAN economies to explore new export market opportunities of the natural resources such as natural gas

and seek regional economic integration (industrial integration) by means of foreign direct investment on the

behalf of ASEAN) to raise living standards and education levels through sustainable economic growth and to

foster a sense of community and an appreciation of shared interests among Asia-Pacific countries. Members

account for approximately 40% of the world's population, approximately 54% of the world's gross domestic

product and about 44% of world trade. For APEC Economic Trends Analysis in 2012, see.
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An annual APEC Economic Leaders' Meeting is attended by the heads of government of all APEC members

except Republic of China (represented under the name Chinese Taipei) by a ministerial-level official. The

location of the meeting rotates annually among the member economies, and until 2011, a famous tradition

involved the attending leaders dressing in a national costume of the host member.

IMF

The International Monetary Fund (IMF) is an international organization that was created on July 22, 1944 at

the Bretton Woods Conference and came into existence on December 27, 1945 when 29 countries signed theArticles of Agreement. It originally had 45 members. The IMF's stated goal was to stabilize exchange rates and

assist the reconstruction of the worlds international payment system post-World War II. Countries contribute

money to a pool through a quota system from which countries with payment imbalances can borrow funds

temporarily. Through this activity and others such as surveillance of its members' economies and policies, the

IMF works to improve the economies of its member countries. The IMF describes itself as an organization of

188 countries (as of April 2012), working to foster global monetary cooperation, secure financial stability,

facilitate international trade, promote high employment and sustainable economic growth, and reduce

poverty. The organization's stated objectives are to promote international economic cooperation,

international trade, employment, and exchange rate stability, including by making financial resources available

to member countries to meet balance of payments needs. Its headquarters are in Washington, D.C.Member countries of the IMF have access to information on the economic policies of all member countries,

the opportunity to influence other members economic policies, technical assistance in bankin g, fiscal affairs

and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade

and investment.

WORLD BANK

The World Bank is an international financial institution that provides loans to developing countries for capita

programs.

The World Bank's official goal is the reduction of poverty. According to the World Bank's Articles of Agreement

(as amended effective 16 February 1989), all of its decisions must be guided by a commitment to promote

foreign investment, international trade, and facilitate capital investment.The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions

the International Bank for Reconstruction and Development (IBRD) and the International Development

Association (IDA), whereas the latter incorporates these two in addition to three more: International Finance

Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement

of Investment Disputes (ICSID).

For the poorest developing countries in the world, the bank's assistance plans are based on poverty reduction

strategies; by combining a cross-section of local groups with an extensive analysis of the country's financial

and economic situation the World Bank develops a strategy pertaining uniquely to the country in question.

The government then identifies the country's priorities and targets for the reduction of poverty, and the

World Bank aligns its aid efforts correspondingly.Forty-five countries pledged US$25.1 billion in "aid for the world's poorest countries", aid that goes to the

World Bank International Development Association (IDA) which distributes the loans to eighty poorer

countries. While wealthier nations sometimes fund their own aid projects, including those for diseases, and

although IDA is the recipient of criticism, Robert B. Zoellick, the former president of the World Bank, said

when the loans were announced on 15 December 2007, that IDA money "is the core funding that the poorest

developing countries rely on".
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IBRD

The International Bank for Reconstruction and Development (IBRD) is an international financial institution

which offers loans to middle-income developing countries. The IBRD is the first of five member institutions

which compose the World Bank Group and is headquartered in Washington, D.C., United States. It was

established in 1944 with the mission of financing the reconstruction ofEuropean nations devastated by World

War II. Together, the International Bank for Reconstruction and Development and its concessional lending

arm, the International Development Association, are collectively known as the World Bank as they share the

same leadership and staff. Following the reconstruction of Europe, the Bank's mandate expanded to advancingworldwide economic development and eradicating poverty. The IBRD provides commercial-grade or

concessional financing to sovereign states to fund projects that seek to improve transportation and

infrastructure, education, domestic policy, environmental consciousness, energy investments, healthcare

access to food and potable water, and access to improved sanitation.

The IBRD is owned and governed by its member states, but has its own executive leadership and staff which

conduct its normal business operations. The Bank's member governments are shareholders which contribute

paid-in capital and have the right to vote on its matters. In addition to contributions from its member nations,

the IBRD acquires most of its capital by borrowing on international capital markets through bond issues. In

2011, it raised $29 billion USD in capital from bond issues made in 26 different currencies. The Bank offers a

number of financial services and products, including flexible loans, grants, risk guarantees, financia

derivatives, and catastrophic risk financing. It reported lending commitments of $26.7 billion made to 132

projects in 2011.Although members contribute capital to the IBRD, the Bank acquires funds primarily by borrowing on internationa

capital markets by issuing bonds. The Bank raised $29 billion USD worth of capital in 2011 from bonds issued in 26

different currencies. The IBRD has enjoyed a triple-A credit rating since 1959, which allows it to borrow capital at

favorable rates. It offers benchmark and global benchmark bonds, bonds denominated in non-hard currencies

structured notes with custom-tailored yields and currencies, discount notes in U.S. dollars and eurodollars. In 2011, the

IBRD sought an additional $86 billion USD (of which $5.1 billion would be paid-in capital) as part of a general capital

increase to increase its lending capacity to middle-income countries. The IBRD expressed in February 2012 its intent to

sell kangaroo bonds (bonds denominated in Australian dollars issued by external firms) with maturities lasting until 2017

and 2022.

IDA

The International Development Association (IDA) is an international financial institution which offers

concessional loans and grants to the world's poorest developing countries. The IDA is a member of the World

Bank Group and is headquartered in Washington, D.C., United States. It was established in 1960 to

complement the existing International Bank for Reconstruction and Development by lending to developing

countries which suffer from the lowest gross national income, from troubled creditworthiness, or from the

lowest per capita income. Together, the International Development Association and International Bank for

Reconstruction and Development are collectively known as the World Bank, as they follow the same executive

leadership and operate with the same staff.The association shares the World Bank's mission of reducing poverty and aims to provide affordable

development financing to countries whose credit risk is so prohibitive that they cannot afford to borrow

commercially or from the Bank's other programs. The IDA's stated aim is to assist the poorest nations in

growing more quickly, equitably, and sustainably to reduce poverty. The IDA is the single largest provider of

funds to economic and human development projects in the world's poorest nations. From 2000 to 2010, it

financed projects which recruited and trained 3 million teachers, immunized 310 million children, funded $792

million in loans to 120,000 small and medium enterprises, built or restored of 118,000 kilometers of paved

roads, built or restored 1,600 bridges, and expanded access to improved water to 113 million people and

improved sanitation facilities to 5.8 million people. The IDA has issued a total $238 billion USD in loans and
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grants since its launch in 1960. Thirty six of the association's borrowing countries have graduated from their

eligibility for its concessional lending. However, eight of these countries have relapsed and have not re-

graduated.

BIS

The Bank for International Settlements (BIS) is an international organization ofcentral banks which "fosters

international monetary and financial cooperation and serves as a bank for central banks." Like all internationa

bodies, and because many central banks are independent institutions, it is not accountable to any singlenational government. The BIS carries out its work through subcommittees, the secretariats it hosts, and

through its annual General Meeting of all member banks. It also provides banking services, but only to central

banks and other international organizations. It is based in Basel, Switzerland, with representative offices in

Hong Kong and Mexico City.

As an organization of central banks, the BIS seeks to make monetary policy more predictable and transparent

among its 58 member central banks. While monetary policy is determined by each sovereign nation, it is

subject to central and private banking scrutiny and potentially to speculation that affects foreign

exchange rates and especially the fate of export economies. Failures to keep monetary policy in line with

reality and make monetary reforms in time, preferably as a simultaneous policy among all 58 member banks

and also involving the International Monetary Fund, have historically led to losses in the billions as banks try to

maintain a policy using open market methods that have proven to be unrealistic. Central banks do not

unilaterally "set" rates, rather they set goals and intervene using their massive financial resources and

regulatory powers to achieve monetary targets they set. One reason to coordinate policy closely is to ensure

that this does not become too expensive and that opportunities for private arbitrageexploiting shifts in policy

or difference in policy, are rare and quickly removed.

Two aspects of monetary policy have proven to be particularly sensitive, and the BIS therefore has two specific

goals: to regulate capital adequacy and make reserve requirements transparent.
http://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Central_bankshttp://en.wikipedia.org/wiki/Baselhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Monetary_reformhttp://en.wikipedia.org/wiki/Simultaneous_policyhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Open_markethttp://en.wikipedia.org/wiki/Arbitragehttp://en.wikipedia.org/wiki/Capital_adequacyhttp://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Capital_adequacyhttp://en.wikipedia.org/wiki/Arbitragehttp://en.wikipedia.org/wiki/Open_markethttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Simultaneous_policyhttp://en.wikipedia.org/wiki/Monetary_reformhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Baselhttp://en.wikipedia.org/wiki/Central_bankshttp://en.wikipedia.org/wiki/International_organization

Economic Organizations

Documents

Transcript of Economic Organizations