Final Exam: International Economic Institutions

What is required for a functioning market economy (EU)?

1. high quality of economic governance 2. macroeconomic stability (including adequate price stability as well as sustainable public finances and external accounts) 3. proper functioning of the goods and services market (including business environment, state influence on product markets, and privatization and restructuring) 4. proper functioning of the financial market (including financial stability and access to finance) 5. proper functioning of the labor market

What is the purpose of Global competitiveness report by the WEF?

1. povides a comprehensive assessment of the competitiveness landscape of economies around the world. 2. It identifies the strengths and weaknesses of each economy, and provides insights into how to improve competitiveness through policy reforms and investments.

What role do stakeholders play in UNIDO SIP approach?

1. stakeholders at center stage in the industrial development Process 2. Present in the facilitator stage. 3. Legitimation: All stakeholders in the strategy must 'own' it. Only then will the policymaking process and its results be ensured widespread support, and the seeking of privileges at the expense of other stakeholders can be prevented. 4. Monitoring system: Monitoring requires dedicated resources and should be entrusted to a clearly defined stakeholder unit.

5 regional economic commissions; only 1 answer is correct under the umbrella of the UN

1. the Economic Commission for Africa (ECA), 2. the Economic Commission for Europe (ECE), 3. the Economic Commission for Latin America and the Caribbean (ECLAC) 4. the Economic and Social Commission for Asia and the Pacific (ESCAP), 5. the Economic and Social Commission for Western Asia (ESCWA).

According to text, what is considered as complex task during SIP implementation stage

1. the different actors 2. project locations 3. changes in conditions that may occur over time.

When was the BRICS new development bank established?

7 July 2015

MTO (Medium-Term Objective)

A Medium-Term Objective (MTO): A budgetary target set for each Member State which is defined in structural terms. Member States must also set out yearly targets on the way towards the MTO and forecast the expected path of their debt-to-GDP ratios.

Definition of informal economic orgs:

Groups of countries or organizations that collaborate and coordinate their economic policies outside of formal, legally-binding agreements or institutions. These organizations are typically formed to address specific economic issues or challenges that are not being adequately addressed by existing formal institutions. (EX: international clubs of creditors, G7, G20, World Economic Forum)

What was the initial motivation by the UN to create UNCTAD

Growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions

Overarching goal of UNIDO strategic industrial policy approach

Helps governments to identify and initiate interventions that will guide a country's economy towards sustainable growth by encouraging structural change. 1. needs of country 2. ESE 3. stakeholders

Intersectoral structural changes

Intersectoral structure of production, towards areas that offer better prospects for economic development. UNIDO's Strategic Industrial Policy Approach (SIP) helps governments to identify and initiate interventions

How does the European Commission monitor economic development within the EU?

It monitors for potential problems, such as risky or unsustainable policies or declining competitiveness, through: 1. regular analysis of a broad range of national and international economic data 2. forecasts for a wide-range of economic indicators such as GDP growth, inflation, and unemployment 3. assessment of national budgets 4. assessment of stability and convergence programs and national reform programs

How does the European Union see the risk of noncompliance with stability and convergence programs (that countries will not comply)?

Sanctions

Purpose of the future jobs report by the WEF?

The WEF publishes an annual report that assesses the impact of emerging technologies on the labor market. The report provides insights into the changing nature of work and the skills required for the jobs of the future. It also offers recommendations for policymakers and businesses to adapt to the changing labor market.

What is a reason or purpose of WTO annual trade monitoring report?

The WTO's annual trade monitoring report takes stock of trade-restrictive and trade-facilitating measures of the collective body of WTO members. 1. Transparency on members' trade measures 2. Provides members with regular opportunities to take stock of and review the latest developments in trade policy and trade policy making. 3. Regular and non-legal peer reviews every six months.

Why was GATS (General Agreement on Trade and Services) created and what was the reason for the agreement?

GATT was designed to reduce trade barriers and promote economic growth through the liberalization of international trade. Fill the vacuum left by the ITO failure.

How does the WTO choose panelists for DSU?

1. 3 (5 in complex) panelists 2. NOT citizens of the member countries 3. Well qualified nongovernmental OR governmental individuals MAINTAINED by the Secretariat

What is the content of stability programs and convergence of programs?

1. A Medium-Term Objective (MTO): A budgetary target set for each Member State which is defined in structural terms. Member States must also set out yearly targets on the way towards the MTO and forecast the expected path of their debt-to-GDP ratios. 2. Underlying economic assumptions about growth, employment, inflation and other important economic variables. 3. A description and assessment of policy measures to achieve the program objectives. 4. An analysis of how changes in the main economic assumptions would affect the budgetary and debt position 5. Information covering several years including: one year of budgetary execution, the current budgetary year, and plans for the three following years. 6. If applicable, an explanation for why targets are not being met.

Primary consideration for UNIDO in implementing SIP

1. Capacity/capability development, advice 2. Procurement of resources 3. Coordination of interventions

How DSU works in terms of when a WTO member violates its obligations?

1. Consultations: Must first attempt to solve the dispute through consultations and mediation. If consultations fail, then a member seeking to initiate a dispute may request that a panel examine and report on its complaint. A respondent party can block the establishment of a panel at the DSB once, but if the complainant requests its establishment again at a subsequent meeting of the DSB, a panel is established. 2. Panel set up and panelists approved 3. Final panel report to parties 4. Final panel report to WTO members: At its conclusion, the panel recommends a decision to the DSB that it will adopt unless all parties agree to block the recommendation. 5. DSB adopts report 6. Can appeal report: The DSU also provides for AB review of panel reports in the event a decision is appealed. Appeals are to be limited to questions of law or legal interpretation developed by the panel in the case. 7. DSB adopts appeals report: AB makes a recommendation. Following the adoption of a panel or appellate report, the DSB oversees the implementation of the findings. The losing party is then to propose how it is to bring itself into compliance "within a reasonable period of time" with the DSB-adopted findings.

Primary task during implementation stage of SIP

1. Creating the institutions and coordination mechanisms for the implementation. 2. Monitoring mechanisms must also be put in place to check the implementation process and the effects of the strategy.

GATS; 4 modes of delivery for services; classified under GATS system

1. Cross-border supply 2. Consumption abroad 3. commercial presence, 4. Presence of natural persons.

What is a main advantage of businesses that operate within the Eurozone in terms of currency exchange?

1. Easier and cheaper, in many cases, to transact business with other EU countries. 2. No Exchange-rate risk: No currency-exchange rate risk 3. Reduced Transaction Costs: The elimination of the need to convert currencies within euro markets reduces transaction costs. 4. Transparency and consistency: Having a single currency makes pricing more transparent and consistent between countries and markets.

The 4 main types of regional economic integration and what they each mean

1. Free Trade Area: Member countries remove all barriers to trade between themselves but are free to determine trade policies w/ non-member countries. Ex: NAFTA 2. Customs Union: This type provides for economic cooperation as in a free-trade zone. Barriers to trade are removed between member countries. The primary difference from the free trade area is that members agree to treat trade with nonmember countries in a similar manner. 3. Common Market: This type allows for the creation of economically integrated markets between member countries. Trade barriers are removed, as are any restrictions on the movement of labor and capital between member countries. Like customs unions, there is a common trade policy for trade with nonmember nations. The primary advantage to workers is that they no longer need a visa or work permit to work in another member country of a common market. EX: the Common Market for Eastern and Southern Africa (COMESA). (T/F question asked about common markets) 4. Economic Union: This type is created when countries enter into an economic agreement to remove barriers to trade and adopt common economic policies. EX: EU.

Purpose of doing strategic feasibility on analysis of industries by UNIDO

1. Identify and select industries that have an immediate or future strategic feasibility combined with a high or low attractiveness. 2. High attractiveness and high feasibility = measures taken immediately to stimulate 3. High attractiveness and potentially high feasibility = long-term diversification measures can be developed for stimulating industries 4. Low attractiveness and high feasibility = May be exploited with limited effort 5. Low attractiveness and low feasibility = disregarded.

The main view in last decade towards gov't involvement in the industrial sector; should gov't be involved, or should it not?

1. In recent decades, the main view was that governments should only remove obstacles to industrial development and correct market failures. 2. However, structural change in a global economy requires complex strategic choices, and markets can, unaided, neither save the environment nor easily coordinate interrelated investments. 3. Governments should play a more pro-active role through deliberate industrial policies. Multi-stakeholder approach. 4. The new industrial policy is interactive. It requires institutionalized, sustained cooperation among all key stakeholders in industrial development.

How manufacturing sector contributes to prosperity of nation?

1. It provides the material basis for wealth: tools, building materials, clothing, medication, educational materials, etc.; 2. It provides the resources, chemicals, etc., that enable the further development of the primary sector; 3. It generates value added by the transformation of raw materials into finished products, thus increasing earnings in domestic and export markets; 4. It stimulates other economic activities through forward and backward linkages; 5. It boosts incomes by its demand for new and higher skills; 6. It stimulates the development of technological, managerial and administrative know-how, boosting productivity growth and innovation throughout the economy.

What triggers the Excessive deficit procedure for an EU member?

1. Member States that run excessive budget deficits of more than 3% of GDP, or 2. Fail to reduce their excessive debts (above 60% of GDP) at a sufficient pace.

What are the financial institutions that belong to BRICS?

1. New Development Bank 2. Contingent Reserve Arrangement (CRA): framework for providing protection against global liquidity pressures. This includes currency issues where members' national currencies are being adversely affected by global financial pressures. 3. SWIFT: Society for WorldWide Interbank Financial Telecommunication: payment system that provides a network that enables financial insts. world wide to send and receive info about financial transactions in a secure way

What are the key principles of WTO

1. Nondiscrimination - a country should not discriminate between its trading partners (giving them equally "most-favored-nation" or MFN status); and it should not discriminate between its own and foreign products, services or nationals (giving them "national treatment") 2. Reciprocity - trade negotiations focus on balancing concessions on tariffs. 3. Enforceable commitments - when countries agree to open their markets for goods or services, they "bind" their commitments. 4. Transparency - the degree to which trade policies and practices, and the process by which they are established, are open and predictable. 5. Safety valves - these measures allow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made.

Additional ways WTO is supporting developing nations

1. Special Provisions in all WTO agreements (a) longer time periods to implement commitments, (b) measures to increase their trading opportunities and (c) support to help them build the infrastructure needed to participate in world trade. 2. Aid for Trade 3. Enhanced Integrated Framework (EIF) 4. Standards and Trade Development Facility (STDF) 5. Technical assistance and training

Key characteristics of multi stakeholder approach to industrial policy making in United Nations Industrial Development Organization (UNIDO)?

1. The multi-stakeholder approach requires learning - the implementation process must become part of the 'group culture' of stakeholders. 2. Prioritization: Expansion and upgrading, industrial deepening, industrial diversification. 3. Economic factors, social factors, and environmental factors

What is the focus of the forum on taxation?

1. To address the challenges of global tax systems. 2. Brings together leaders from business, government, and civil society to discuss and propose solutions to tax issues, such as tax avoidance and evasion, base erosion and profit shifting, and the taxation of the digital economy.

Primary focus of UNIDO strategic approach to industry development

Aimed at steering economic activity, particularly the intra - and intersectoral structure of production, towards areas that offer better prospects for economic development. Focussing on the long-term positioning of a country's manufacturing sector in the global economy. 1. Economic, social, and environmental sustainability. 2. Prioritization 3. Multi-stakeholder involvement

What global challenges does UNCTAD analyze, particularly focusing on their impact on developing countries?

Analytical research on the linkages between trade, investment, technology and enterprise development. 1. Debt 2. Export marginalization 3. Energy poverty 4. Climate vulnerability.

What is the purpose of a panel in DSU?

At its conclusion, the panel recommends a decision to the DSB that it will adopt unless all parties agree to block the recommendation. The AB is composed of seven rotating panelists, appointed by the DSB, that serve four-year terms, with the possibility of a one-term reappointment.

From UNIDO point of view, what do they assess as a part of the attractiveness of industrial industries of the world?

Attractiveness of industry: multidimensional comparative assessment: Growth, pro-poor, environmental (Economic, social, and environmental)

What does "Behind the Border" mean?

Behind the border barriers refers to a variety of non-tariff barriers (NTBs) that operate inside countries rather than at the border, but that nonetheless can restrict or discriminate trade.

Where the first UNCTAD conference was held, which year, and which country OR CITY

Geneva, 1964

Dispute Settlement Understanding

Commits members to settle complaints about alleged violations under DSU rules and procedures. Provides an enforceable means for WTO members to resolve disputes arising under the binding provisions.

How members of Plurilateral agreements can grant benefits to other WTO members?

Conditional-MFN: Participants undertake obligations among themselves, but do not extend the benefits to other WTO members, unless they directly participate in the agreement.

What are the economic criteria for countries to join the EU?

Copenhagen Criteria: 1. The existence of a functioning market economy 2. The capacity to cope with competitive pressure and market forces within the Union.

If a disputing party declines with findings of the DSB, what happens?

DSB may authorize retaliation in the amount of the determined cost of the offending party's measure to the aggrieved party's economy.

How can the WTO ensure accountability among its members?

DSM, Special and Differential Treatment, monitoring

What is Group 77?

Developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)

What may be withheld from member states under the excessive deficit procedure, as a form of sanction?

Regional subsidies from the EU's cohesion fund can be withheld.

Enabling clause; what does it mean?

Enabling clause of the GATT (the "Decision on Differential and More Favorable Treatment, Reciprocity and Fuller Participation of Developing Countries" of 1979): Enables developed country members to grant differential and more favorable treatment to developing countries that is not extended to other members.

What are the 3 basic roles that UNIDO plays in implementing SIP projects?

Facilitator, Policy Adviser, and Capacity Developer

How the manufacturing sector can stimulate economic activities in the country?

Forward and backward linkages

What is a role of UNIDO as a policy advisor of SIP project?

From the dialogue and its vast experience and research, UNIDO distils recommendations for the process and content of a strategic industrial policy.

Cumulative GDP of BRICS and cumulative GDP of G7

G7: $46.3 trillion BRICS:$26.6 trillion

What is a primary reason of designing the TFA (Trade Facilitation Agreement)?

Multilateral: TFA aims to address multiple trade barriers confronted by exporters and importers and reduce trade costs by streamlining, modernizing, and speeding up the customs processes for cross-border trade, as well as making it more transparent.

Key feature of GPA (Government Procurement Agreement)

Plurilateral: Non-GPA signatories do not enjoy rights under the agreement. The GPA provides market access for various nondefense government projects to contractors of its signatories. Each member specifies government entities and goods and services (with thresholds and limitations) that are open to procurement bids by foreign firms of the other GPA members

Plurilateral vs Multilateral Agreement in WTO

Plurilateral: Some countries make special agreements on specific issues. Multilateral: All countries agree on common rules for everyone.

What is the purpose of the Stability and Growth Pact in the EU?

Stability and Growth Pact: Aims to prevent the emergence or exacerbation of fiscal difficulties. Evaluates on structural balance analysis and the expenditure benchmark.

Strategic feasibility (UNIDO) when they are assessing industries

Strategic feasibility is derived from an analysis of current technological capabilities and other essential policy-relevant factors (education, incentives, institutions, etc.) as well as relevant country characteristics such as country size, factor endowments and population density.

Developing nations and TRIPS?

TRIPS includes flexibilities for developing nations, such as transitional periods, public health safeguards, and the allowance of compulsory licenses during public health crises. Limits developing countries from utilizing some technology that originates from abroad in their local systems.

Within system of WTO, what is called the Crown Jewel of this organization?

The Dispute Settlement

What is the role of the DSB in the WTO?

The Dispute Settlement Body (DSB) is a plenary committee of the WTO, which oversees the panels and adopts the recommendation of a DS panel or AB panel. DSB arranges mutual agreement.

Primary focus of UNIDO as facilitator of SIP projects

The Organization helps to initiate and stimulate the industrial development dialogue among all key public and private sector stakeholders in a country. It does so impartially.

In addition to sustainable development, what else is on their agenda of UNCTAD economic and trade agenda?

The Sustainable Development Goals

What is the key aspect of the TRIPS agreement in the context of IPR?

The TRIPS Agreement marked the first time multilateral trade rules incorporated intellectual property rights (IPR)—legal, private, enforceable rights that governments grant to inventors and artists to encourage innovation and creative output. This agreement is pivotal in promoting innovation, providing a consistent system for IPR protection, and facilitating international trade by ensuring a level playing field for the treatment of intellectual property among World Trade Organization (WTO) member countries. However, many argue that it put more restrictions on developing countries.

Intersectoral change in terms of economic development - changing the structure of the economy and moving from 1 branch of industry to another

The transformation of primary sector products by the manufacturing sector.

Under the single European union market, what can flow free?

This single market permits the free flow of goods, service, capital, and people within the EU. Although there is a single tariff on goods entering an EU country, once in the market, no additional tariffs or taxes can be levied on the goods.

What is emphasized in tailoring industrial policies? Do they use universal, specific needs of diff. countries? Do they ignore environemental dimensions, etc.

UNIDO offers wide range of services and expertise; Specific tasks of Development Policy, Statistics and Research (DPR), include strategic industrial policy advice and the creation of local capacities for policy design and implementation. Information and knowledge and governance mechanisms. Do take environmental dimensions into consideration.

List of information included done by United Nations Conference on Trade and Development (UNCTAD); they issue reports every year

World Investment Reports focus on trends in foreign direct investment world wide: Every issue of the Report has: • Analysis of the trends in FDI during the previous year, with especial emphasis on the development implications. • Ranking of the largest transnational corporations in the world. • In-depth analysis of a selected topic related to FDI. • Policy analysis and recommendations. • Statistical annex with data on FDI flows and stocks at the country level.