TMJC 2025 J1H2 C1 Lecture 5 Multilateral institutions

1 WHAT ARE MULTILATERAL INSTITUTIONS/SUPRANATIONAL ORGANISATION Multilateral institutions/Supranational bodies refer to agencies that have powers above that of the state. These agencies get their power from the agreements between its member states. Such supranational bodies can be divided into two main categories: (A) INTERNATIONAL REGULATORS International Regulators are international institutions that seek to regulate activity worldwide. In this syllabus, we will examine Global Financial Institutes (GFIs) such as International Monetary Fund (IMF) and World Bank, as well as, World Trade Organisation (WTO). Their aims are to remove trade barriers, promote global trade and stabilise economies. World Bank The World Bank is made up of 189 member states that provides loans to developing countries for capital programs. It consists of two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). They aim to reduce poverty through an inclusive and sustainable globalisation through promotion of foreign investment and international trade and facilitation of capital investment. They do so by: i. Providing low-interest loans, zero to low interest credits and grants to developing countries. ii. Supporting social development programs such as education, health, public administration. Infrastructure, financial and private sector development, agriculture and environmental and nature resource management. iii. Facilitating financing through trust fund partnerships and bilateral and multilateral donors Providing advice on innovative knowledge sharing through policy advice, research and analysis and technical assistance The World Trade Organisation (WTO) The World Trade Organisation (WTO) began on 1 January 1995, replacing what was previously known as General Agreement on Tari ffs and Trade (GATT) . Its key aim is to promote competition & liberalisation of both goods and services. The major issues covered by the new WTO are outlined as follows: i. Reduction of tariffs and opening up of markets : For example, the European agricultural market will be opened up with a 30% cut in farm subsidies; protective barriers against imports of textiles will be reduced. ii. General agreement on trade of services : With rise of internet, it allows for transnational services hence this aim open up world markets and promote international financial and insurance services. Higher 2 (9173) Cluster 1: Development, Economy and Environment TMJC Cluster 1 Lecture 5 Multilateral Institutions 2025

2 iii. Trade-Related Intellectual Property Rights (TRIPS ): TRIPS protects patents by individuals or companies, giving legal protection against piracy or theft. However, although over 150 members are members of the WTO, effectively most decisions are made by the only more influential powerful 8 – the so-called G8- comprising Canada, USA, UK, Italy, France, German