International organizations are legally constituted entities that operate across several nations. Such organizations do not operate for profit. Some of the international organizations are the WTO (World Trade Organization), Global Futures Foundation and IMF (International Monetary Fund).
History of International Organizations since World War II
The history of international organizations can be categorized into two parts:
Economic and Trade: Post WWII, the US and its winning allies came to the conclusion that a stable liberal international economic order is the necessary basis of lasting peace, apart from stable international political order. The ITO (International Trade Organizations) came to an end due to political disagreements. In 1947, GATT (General Agreement on Tariffs and Trade) was formed as a free standing trade agreement, which was less formal in nature. The GATT agreements were formalized as the WTO. The 1970s saw a substantial reduction in tariffs on many goods. During the 1980s and 1990s, the GATT member countries took the initiatives to make the agreement more formal.
- Financial: World Bank made a lot of amendments in its loan practices by implementing recommendations of the French government and the Marshall Plan. The bank started shifting its focus towards non-European nations. During 1968-1980, it worked towards poverty alleviation by that ensuring people in developing nations get their basic needs. From 1989 till late 2000s, the focus has been shifted to going green. After WWII, the IMF also focused on offering monetary help to non-European countries.
Importance of International Organizations
The main objective of all the international organizations has been welfare improvement of member countries. The importance of international organizations lies in the following:
- International organizations, such as International Trade Centre and World Trade Organization, assist member countries in promoting fair trade with each other.
- The aim of the international organizations, such as Natural Capitalism and International Development Research Centre, is to enhance sustainable economic development in the world.
- The World Bank and Institute of International Finance are international organizations that provide monetary help to member countries.
- The purpose of the incorporation of international organizations, such as Food and Agriculture Organisation (FAO) and World Food Programme, is to provide food security to member nations.
- The endeavor of international organizations, such as Global Environment Facility and United Nations Environment Programme, is to ensure environmental protection.
- The protection of human rights is ensured by international organizations, such as the International Court of Justice and Amnesty International.
- Emergency/disaster relief is taken care of by several international organizations, such as the International Committee of the Red Cross and ReliefWeb.
- The World Health Organization helps member countries promote health care and facilities.
Current Challenges of International Organisations
One of the major challenges being faced by international organizations is integrating developing countries on various measures. These are also facing health related challenges, such as infant mortality in developing countries. Some other challenges that international organizations are facing are in the filed of intellectual property rights, trade in services and investment measures in relation to trade.
Future Challenges to International Organizations
The following are the future challenges facing international organizations:
- Member countries fear that international organizations might dictate their terms. So, they implement protectionism in regulatory practices at the domestic level, which poses new strains.
- Multilateral liberalization might face difficulties due to growing regionalism.
- International organizations are likely to face the challenge of enhance international reforms in the world trade.