The Purpose and Significance of International Economic Organizations

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The Purpose and Significance of International Economic Organizations
International economic and political organizations like WTO, UN, World Bank, and IMF are the primary counterparts in the development and management of the current global economy. Specifically, the central role of these organizations is to enhance coherence in the international economic policy making (Auboin 1). These organizations support and utilize neoliberal policies of debt-based economies, free-market solutions, and global trade to reduce global poverty rates and support underdeveloped and developing countries. Therefore, these institutions work closely with each other through cooperation agreements to execute their goals effectively.
Together, these international organizations support privatization, economic structural alteration, and global market liberalization. As such, inside the international framework, developing countries are left with no option but to comply with the neoclassical agenda (Auboin 2). Also, in their attempts to regulate the international economy, international economic organizations strive to establish a balanced trade, effectual evolvement for the LDCs (Lower Developed Countries) and steady finance systems. These organizations are therefore significant in expanding international trade by enhancing the coherence of trade policy, improving living standards by supporting developing states and promoting the sustainable economic development of countries in the world.

The U.S. exhibited a significant role in the establishment of the above economic and political institutions. Being the world’s largest industrial power, the United States exhibited a strong power and influence within the above organizations (Auboin 10). The establishment, location, mandate, and structure of these institutions were to a significant extent determined by the U.S. It is also worth noting that the U.S. holds over one-third of the total voting rights in every one of the above institutions. As such, no decisions can be formulated without seeking the opinion and approval of the U.S.

Works Cited
Auboin, Marc. “Fulfilling the Marrakesh Mandate on Coherence: Ten Years of Cooperation between the WTO, IMF and World Bank.” No. 13. WTO Discussion Paper, 2007.