The Role International Institutions Played in Leberating Free Trade
Colin Powell once said “Free trade is a powerful instrument of freedom; a vibrant and dynamic market is the most powerful force for economic growth and sustainable development. This is not ideology talking. Facts speak for themselves and they tell us that free trade means bread, bread for the neediest of our people” (Quotations, 2009).
Although there are number of legislations and policies that regulate globalization, the way those regulations have been implemented is a major debate subject till date. Some say they were very effective in liberating free trade while others say they were just used as a legal excuse to make more money from the poor people.
This essay will attempt to examine the different aspects of this controversy and the way it will affect the future negotiation rounds.
In order to fully comprehend the issue, the first part of this essay will define the free trade concept and give a brief historical background of the international institutes, followed by the role they play in the world economy and the principles by which they operate. Finally, it will evaluate the success of the World Trade Organization in achieving the objective it was formed for through some examples.
A study by Beardshaw (2001) indicates that imposing restrictions on the movement of products and labor in addition to currency fluctuation not only raises economic depression levels in the world, but also helps fascism movements grow which can, and have, led to war. For this reason, establishing international institutions that set rules to encourage and promote free trade was necessary to maintain peace after the Second World War was over.
Arising from this was the conference at Bretton Woods, which, after 22 days of negotiations, came to the decision of creating two international institutions. These were the International Monetary Fund (IMF) and the World Bank (Griffins & Wall, 2007).
The IMF objective is to maintain economic stability
Although there are number of legislations and policies that regulate globalization, the way those regulations have been implemented is a major debate subject till date. Some say they were very effective in liberating free trade while others say they were just used as a legal excuse to make more money from the poor people.
This essay will attempt to examine the different aspects of this controversy and the way it will affect the future negotiation rounds.
In order to fully comprehend the issue, the first part of this essay will define the free trade concept and give a brief historical background of the international institutes, followed by the role they play in the world economy and the principles by which they operate. Finally, it will evaluate the success of the World Trade Organization in achieving the objective it was formed for through some examples.
A study by Beardshaw (2001) indicates that imposing restrictions on the movement of products and labor in addition to currency fluctuation not only raises economic depression levels in the world, but also helps fascism movements grow which can, and have, led to war. For this reason, establishing international institutions that set rules to encourage and promote free trade was necessary to maintain peace after the Second World War was over.
Arising from this was the conference at Bretton Woods, which, after 22 days of negotiations, came to the decision of creating two international institutions. These were the International Monetary Fund (IMF) and the World Bank (Griffins & Wall, 2007).
The IMF objective is to maintain economic stability