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Organizations Supporting International Commerce

GATT – General Agreement on Tariffs and Trade. Is an agreement which arranges the international trade for rights and responsibilities and signed by 23 countries in 1947. The foundation purpose of GATT is to decrease import taxes, to eliminate all hinders in front of the international commerce and to end the discriminative applications in commerce. Other than this, GATT aims to provide consultancy and settlement, eliminate the opinion differences, prevent the commercial interests of the members from harming. WTO – World Trade Organization, the most efficient organization of international trade became the successor of GATT in 1995. www.gatt.org

UNCTAD – United Nations Conference on Trade and Development. The main purpose of UNCTAD, the headquarters of her secretariat is in Geneva, was to solve the basic product commerce problems. Other than this, UNCTAD made great studies for the common interests of underdeveloped countries (UDC). The main study committees of UNCTAD are basic materials, produced materials, technology transfers, maritime, and finance committees.  www.unctad.org

WBG – World Bank Group. WB – World Bank, was founded with the name of IBRD – International Bank for Reconstruction and Development in order to repair Europe in 1945 after the World War II. In time, she turned into a group and took the name of World Bank Group and five main organizations were included in the organization of the institution. These are:

  • IBRD – International Bank for Reconstruction and Development – IBRD is the department which was established in 1945 and accrediting the public sector of the developing countries. Turkey became a member of the organization in 1947. Turkey can use credit with a term up to 17 years, of which 5 years non-refundable. The capital and vote power of Turkey is at 0,5% level.  www.worldbank.org (The link of IBRD page is below the site).
  • IDA – İnternational Development Association was established in 1960. Her purpose is to accredit the countries, the income per capita is under the poverty line, and provide a loan in general with zero interest and with a term of 35 – 40 years. Turkey entered IDA in 1960; her share in the total capital is 0,9% and doesn’t use credit from this fund.  www.worldbank.org/ida/

IFC – International Finance Corporation was founded in 1956. This part is assigned to accredit the private sector and ensuring the development of the private sector in the developing countries. Turkey entered this organization in the year it was established and has a share of 0,6% in her total capital.  http://www.ifc.org/
MIGA – Multilateral Investment Guarantee Agency was founded in 1985. She was designed as the part assigned for providing guarantees to the investments to be made in the developing countries to meet the noncommercial risks (foreign exchange transfer hardness, confiscation, nationalization etc.). Turkey entered MIGA in 1988. Her capital share and vote power in this organization is at 0,4% level.  http://www.miga.org/
ICSID –International Center for Settlement of Investment Disputes was established in 1965. The center is an organization consulting the intermediary and arbitration cases. She develops rules related with arbitration and settlement panels and acts as the settlement commission. Turkey entered this organization in 1987.  http://icsid.worldbank.org/ICSID/Index.jsp

IMF –International Monetary Fund is an international organization having the duties of making supervision and organization, also providing technical and financial support, in subjects such as monitoring the global financial order, stock markets, foreign exchange rates, and payment plans. It is an organization, founded in Brotton Woods, in New Hamsphire state of USA in 1944 and started operations actually in 1947 and dealing with international economic problems. After the First and Second World War, the international problems become complex and the economic crisis lived after the World War I and the economic depressions after the war had a factual situation which threatened the economic relations. On the contrary to the ruined and depressed economic conditions of European countries after World War II, the increase in the export and gold stocks of the United States of America during the war caused that it became the only country which can aid economically. USA advocated to aid by establishing financial organizations instead of directly aiding the European countries and some decisions were taken with the participation of 45 states in Bretton Woods in 1944. IMF was established to accredit the temporary (short termed) financial difficulties which may occur in the balance of payments of European countries to prevent that international commerce is contracted because of this, the World Bank to ensure the reconstruction of the European countries by giving long term investment credits and to remove the instructive imbalances in the payment balance sheets. Important part of the capitals and resources of both organizations were provided by USA. It was required that the countries, member of these organizations, in principle, follow the monetary policies preventing the inflation domestically, not contract the foreign trade due to unilateral devaluations and import threats; on the contrary, to eliminate such threats as much as possible.

The purposes of IMF can be listed as below:

  • Encouraging the international cooperation by establishing the mechanism required by consultancy between the members and acting together in the international monetary subjects.
  • Ensuring that the international commerce develops in a balanced way and therefore making contribution to realizing the high employment and real income levels, to develop the productive capacity.
  • Ensuring the foreign exchange stability and necessary exchange arrangements and preventing the competitive devaluations.
  • Realizing the full convertibility of national moneys to establish a multilateral payment system and eliminating the foreign exchange limitations.
  • Finding financial resources, provided that they are temporary, for the member countries not applying the limiting measurements to eliminate the foreign imbalances.
  • Decreasing the imbalance in the foreign payments both for time and volume.

IDB – Islamic Development Bank. Islamic Development Bank was founded in 1975. The purpose of the bank: aiding the development attempts of the Islamic countries, providing resources for this and developing and strengthening the commercial and industrial cooperation between the members.  www.isdb.org
ADB – Asian Development Bank was founded in 1966 to encourage and develop the economic and financial cooperation between the countries in the region. A substantial part of the resources she provides was used in agriculture; the remaining part in energy, mining and industry sectors.  www.adb.org
OPEC – Organization of Petroleum Exporting Countries. She was established in September 14th, 1960, with an agreement signed in Bagdad to follow a common oil production and price policy. The purpose of the organization is “to increase the oil prices, to provide higher income shares to the private oil companies and to study on production adjustment plant to improve the prices”. Today OPEC looks like a cartel which has mainly lost her old efficiency and is at a point of disbanding. www.opec.org