International Monetary Fund

1
International Monetary Fund

• Created in 1945
• Ensures economic stability in the world
  (international)
• Lends money to countries in financial crises
• Loans are conditional
• Countries must adopt economic reforms that are
  meant to stabilize and open up that countries
  economy (free trade/globalization)
• Limits countries sovereignty because they must
  obey these conditions to get loans

2
World Bank

• Created in 1945
• Group of financial institutions
• Role was to finance reconstruction of countries
  devastated by WWII
• Now lends money to governments and corporations
  in developing countries
• Countries must adopt administrative (whos in
  charge) and structural (public ? private) reforms
  in order to receive loans

3
Multinational Corporations

• Large-scale businesses operating in several
  countries to
• Be closer to natural resources needed for
  production
• Avoid tariffs
• Find other markets for their products
• Pay lower production costs than in their home
  country
• 31 trillion in sales in 2007
• 2/3 of international trade is by multinationals
• Employed 82 million people in 2007

4
Multinationals

• Very powerful make more money than some
  countries
• Through lobbies, they influence governments
  because they
• Employ millions of people
• Invest enormous amounts of money
• Governments try to attract these companies by
• Introducing free trade zones
• Providing tax breaks

Corporation Home Country Industry Sales (2006) Billions US Number of Employees
Exxonmobil US Petroleum 365 82 100
Wal-Mart US Retailing 344 1 910 000
Royal Dutch/Shell UK Netherlands Petroleum 318 108 000
British Petroleum Co UK Petroleum 270 97 100
Toyota Japan Automobile 205 299 394
5
Non-Governmental Organizations

• Must be formed by citizens with no ties to
  government and volunteering
• Non-profit organizations
• Conduct research, organize demonstrations,
  distribute information, raise money, conduct
  advertising campaigns
• Work in different fields, ie health, environment,
  economics
• Can be national or international

6
NGOs

• Political or economic
• Transparency Intl fights govt corruption
• Human rights
• Amnesty Intl prevents and ends human rights
  violations
• Reporters Without Borders fights laws that
  restrict freedom of the press and defends
  persecuted or imprisoned journalists
• World Organization Against Torture fights
  torture, summary executions and any other cruel
  or inhumane treatment
• Environmental
• Greenpeace conducts educational campaigns,
  researches and promotes developing ecological
  solutions
• World Wide Fund for Nature Fights pollution
• Humanitarian
• Doctors Without Borders offers emergency medical
  assistance to populations at risk
• Oxfam fights poverty and injustice around the
  world
• Red Cross protects and assists victims of
  conflicts