B. Read the information and say if you were right in your guesses.

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).

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.

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.

One of the major challenges being faced by international organizations is integrating developing countries on various measures. Some other challenges that international organizations are facing are in the field of intellectual property rights, trade in services and investment measures in relation to trade.

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.

C. What spheres of economy and social life, do you think, the following organizations are engaged in?

International Trade Centre and World Trade Organization, The World Bank and Institute of International Finance, Food and Agriculture Organisation (FAO) and World Food Programme, Global Environment Facility and United Nations Environment Programme, the International Committee of the Red Cross and ReliefWeb, the World Health Organization.

Reading 2. Globalization