Role of International Organizations in Global Economy

International organizations provide a common platform wherein representatives from different parts of the world can discuss and evolve solutions for contemporary issues. In common parlance, it is well known as intergovernmental organizations. The World trade Organization, European Union and Council of Europe are international Organizations to name a few.

Evolution Of International Organizations

There was need to have a neutral forum where countries could participate and discuss problems that were of significance the world over. This gave rise to international Organizations.

Role Of International Organizations

The participating countries define the function of the International Organizations. The objective of international organization is to study, collect and propagate information, setting up of laws that are internationally accepted. The international organizations also help in cooperation between different countries by setting up negotiation deals between them. The international Organizations also help in technical assistance.

The International Organizations play an important role in collecting statistical information, analyzing the trends in the variables, making a comparative study and disseminate the information to all other countries. There are some intergovernmental organizations that have set international Minimum standards. Such norms are difficult to be set at the state level.

There are some international organizations that perform certain supervisory functions. The supervisory system of the UN is very weak. In contrast, the supervisory mechanism of the ILO is quite strong. The European Union, together with the Commission and the Court of Justice, has a relatively strong supervisory mechanism.

The third function of the international organizations is setting up multilateral or bilateral agreements between countries.

Another function, that has assumed importance in the recent times, is lending out technical cooperation to the member countries. By technical cooperation we mean the provision of intellectual or financial material to the countries, which require them.

Amongst all the roles and activities of the international organizations, the most important is negotiating and setting up multilateral agreements. Minimizing the transaction costs can strengthen the cooperation between different countries. Beside they also provide lucidity and information. For negotiations, forums for bargaining are set up and focal point structures are constructed during negotiations.

The multilateral agreements that are settled by the international organizations occur in sections like environment protection, development trade, crime human rights, etc.