SAJC Cluster 1,2 Lecture 15 Notes (Multilateral Institutions)

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture15_2025/pg 1 Lecture 15 Relative Role of Actors in Shaping the Global Economy (III): Multilateral Institutions KEY QUESTION: Can multilateral institutions influence economic activities? With the completion of this lecture, attached readings and tutorial, you should be able to discuss the influence of multilateral institutions on TNCs and states: − Association of Southeast Asian Nations (ASEAN) − World Trade Organisation (WTO) − World Bank Lecture Outline 15.1 Introduction: Multilateral Institutions 15.2 Influence of the Association of Southeast Asian Nations (ASEAN) on TNCs and States 15.2.1 The ASEAN Economic Community (AEC) Box 1: The Impacts of AFTA on the Philippines Box 2: The Impacts of AFTA on Indonesia 15.3 Influence of the World Trade Organisation (WTO) on TNCs and States Box 3: China joins the WTO Box 4: India – The impact of the removal of agricultural tariffs 15.4 Influence of the World Bank on TNCs and States Box 5: Closing the human capital gap in Egypt Box 6: World Bank won’t fund coal-related projects in India Box 7: IFC Invests in Pakistan’s Key Fashion Retail Sector to Help Create Jobs, Support Women Box 8: Singapore firm awarded urban water project in Ghana 15.5 Conclusion The World Trade Organization (WTO) sets out trading standards for much of the world to follow. But the relevance of such standards has been called into question in today’s economy which has grown more complicated compared to the time when it was formed. The WTO is an example of a multilateral institution, accorded with powers that can influence the global economy. Which other institutions operate above the scale of the state? How effective have these multilateral institutions been in influencing TNCs and states?

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture15_2025/pg 2 15.1 Introduction: Multilateral Institutions • Multilateral institutions (MIs) are international institutions created by states , usually as a means of achieving collective objectives , usually of global priority, that could not be accomplished by acting individually. • Some multilateral institutions have a truly global mandate, such as the World Bank and the World Trade Organisation (WTO). They play a powerful role in global development, including promoting economic and social development in specific countries or regions. • Other multilateral institutions operate at a macro-regional scale, such as the Association of Southeast Asian Nations (ASEAN). • In this chapter, we will examine how MIs shape the global economy. In other words, we want to be able to explain how MIs promote flows of trade, capital and labour within the global economy, thereby affecting connectedness and interdependence in the global economy. We also want to understand how MIs contribute to