159
In addition, the World Bank Group and International Monetary Fund (see Sect.
6.2.3) have significant impacts on the FEW nexus.
6.2.3 World Trade Organization and GATT
In Chap. 7, we explore the important role that trade plays in supporting food, energy,
and water security. Trade governance is therefore an important part of international
governance related to FEW systems.
The modern approach to regulating international trade was profound shaped by the
same process that led to the creation of the United Nations system following World
War II which included a belief that the way in which had nations managed their trade
and currencies during the interwar years were a significant factor in making the Great
Depression as harmful and long-lasting as it was, and created conditions that help lead
to the second global war within a quarter century of the first. In particular, trade
barriers such as tariffs, import quotas, and subsidies were viewed as exacerbating
economic and social instability.
At the famous 1944 Bretton Woods conference, proposals were endorsed to
create three international organizations to facilitate economic growth:
1. The International Monetary Fund (IMF) to promote financial stability by having
countries cooperate in how they managed their currency exchange rates and
financial flows; and to support nations which face problems in their payments of
international debts, thereby avoiding broader international financial crises.
2. The International Bank for Reconstruction and Development, to provide debtfinancing and aid reconstruction following the war. This Bank subsequently
became one of five institutions within the World Bank Group (WBG). The World
Bank expansion included additional components primarily aimed at supporting
development in low-income countries, including the:
(a) International Finance Corporation (1956) to work with the private sector;
(b) International Development Association (1960) to provide interest-free loans
or grants;
(c) International Centre for Settlement of Investment Disputes (1965); and
(d) Multilateral Investment Guarantee Agency (1988) to provide insurance for
investments.
Data aggregated and disseminated by the World Bank has been used throughout this book.
3. The International Trade Organization (ITO) to establish rules for international
trade that would reduce barrier to international trade. Because the ITO was
viewed as a threat to domestic policy-making in the USA, the treaty to establish
it failed to be ratified in that country. However, a weaker General Agreement on
Tariffs and Trade or “GATT” was endorsed and has provided the most significant framework for regulating international trade.
6 International Governance
In addition, the World Bank Group and International Monetary Fund (see Sect.
6.2.3) have significant impacts on the FEW nexus.
6.2.3 World Trade Organization and GATT
In Chap. 7, we explore the important role that trade plays in supporting food, energy,
and water security. Trade governance is therefore an important part of international
governance related to FEW systems.
The modern approach to regulating international trade was profound shaped by the
same process that led to the creation of the United Nations system following World
War II which included a belief that the way in which had nations managed their trade
and currencies during the interwar years were a significant factor in making the Great
Depression as harmful and long-lasting as it was, and created conditions that help lead
to the second global war within a quarter century of the first. In particular, trade
barriers such as tariffs, import quotas, and subsidies were viewed as exacerbating
economic and social instability.
At the famous 1944 Bretton Woods conference, proposals were endorsed to
create three international organizations to facilitate economic growth:
1. The International Monetary Fund (IMF) to promote financial stability by having
countries cooperate in how they managed their currency exchange rates and
financial flows; and to support nations which face problems in their payments of
international debts, thereby avoiding broader international financial crises.
2. The International Bank for Reconstruction and Development, to provide debtfinancing and aid reconstruction following the war. This Bank subsequently
became one of five institutions within the World Bank Group (WBG). The World
Bank expansion included additional components primarily aimed at supporting
development in low-income countries, including the:
(a) International Finance Corporation (1956) to work with the private sector;
(b) International Development Association (1960) to provide interest-free loans
or grants;
(c) International Centre for Settlement of Investment Disputes (1965); and
(d) Multilateral Investment Guarantee Agency (1988) to provide insurance for
investments.
Data aggregated and disseminated by the World Bank has been used throughout this book.
3. The International Trade Organization (ITO) to establish rules for international
trade that would reduce barrier to international trade. Because the ITO was
viewed as a threat to domestic policy-making in the USA, the treaty to establish
it failed to be ratified in that country. However, a weaker General Agreement on
Tariffs and Trade or “GATT” was endorsed and has provided the most significant framework for regulating international trade.
6 International Governance