International Institutions and Realism

2398 Words10 Pages
Becky, Tam Hing Lui
Prof. Chan Ding Ding
GPEC 5002 Challenges to the Global System: Insecurity of the World
17 November 2012 HOW CAN INTERNATIONAL INSTITUTIONS FACILITATE COOPERATION?

WHAT WOULD A REALIST SAY ABOUT INTERNATIONAL INSTITUTIONS?

Nations call for cooperation especially during and after crisis. One example was the Bretton Wood system created in 1944, with the purpose to revive the global economy after the serious damage in WWII. After the 2008 financial crisis, nations again asked for more international regulations and monitoring on the global financial system and suggested the “Bretton Wood II”. When we step back and think again, does the international regime facilitate cooperation between nations to solve global
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The GATT, unlike the IMF and World Bank, was not an independent organization but rather a forum within which countries met. This provides a platform for elites to negotiate and reach agreement and avoid conflicts and adverse competition. With the GATT rounds held between 1947 and 1967, most barriers have been removed and tariffs have been the lowest. With the Bretton Wood framework in place along with the newly established international institutions which provide free market, long term capital and stable monetary system, global trade and production exploded during the period. Over the first 25 postwar years, the volume of world trade doubled every 10 years (4). This has been proven as a successful international cooperation in the modern history.

(II) World Trade Organization (WTO)
Established under the Marrakech Agreement in 1995, the Geneva based WTO replaced GATT as the center of world trade system. Its core principles are to promote market liberalization, non-discrimination and provide legal structure for international trade. Same as GATT, it provides forum for trade negotiations and administers trade agreements. In addition, WTO also supplies mechanism through which governments may resolve trade disputes, review and propagate the national trade policies, provide useful data and information, and to ensure the coherence and transparency of trade policies through surveillance in global economic policy-making. The Decision making
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