 |
 |
|
¿What is the Pacific Basin?
A phenomenon of great significance in the process of shaping the world economic order for the XXI century has been the consolidation of the Pacific Asian countries as a new centre of enormous productive and tecnological potential which has already acquired a notable prominence in the contemporary world’s trade currents. It is not a formal association of countries which seek the unification of their markets, but a a nucleus with joint and interdependent dynamics which has acquired a determining gravitation in the economic and commercial life of the world. The leader of this group of countries is Japan, and it also includes countries of Southeast Asia of recent industralization, such as Taiwan, Korea, Hong Kong and Singapore, and the four members of the Association of Southeastern Nations (ASEAN), Thailand, Malaysia, Indonesia and the Philipines. The relative weight of this set of countries could still increase in a substantial way in case the economic emergence of China can be consolidated, and if the efforts that India is making to join this movement bear fruit. Infact, this phenomenon could involve the Australian continent, traditionally linked to the West. For Latin America, this perspective must not be ignored, and for this reason it is of great importance to begin increasing links with the countries of this basin which offers incalculable trade potential.
¿What is the General Agreement on Tariffs and Trade (GATT)?
As was indicated above, parallel to this phenomenon of blocks and regional integration, there is a tendency toward cohesion and interdependance on a worldwide scale. To support this last process, once World War II was over, a General Agreement on Tariffs and Trade (GATT) was signed in 1947 by 90 countries with the purpose of providing impulse to a more open, stable and transparent trade regulation on a worldwide scale, and to fight protectionisim and discrimination, in such a way that on the basis of the expansion of trade, a more complete and efficient use of world resources is facilitated which will result in higher levels of employment, income and human welfare.
In order to achieve these objectives, GATT envisaged the signing of agreements aimed at obtaining, based on reciprocity and mutual benefits, a substantial reduction in tariffs and other trade barriers as well as the elimination of all discriminatory treatment in international trade. The agreement envisages a set of rights and obligations (or conducts of behavior) which must be respected by the signatory countries (the parts) and mechanisims for the solution of controversies. More specifically, GATT serves as the framework for the realization of general negotation rounds between member countries. Eight such rounds have now taken place, the last of which, the Uruguay Round, began in September 1986 in Punta del Este (Uruguay). This Round culminated in April 1994 after a slow and arduous negotation process which allowed the United States and the European Union to reach an agreement with respect to agricultural production and trade policies. Even though the achievements of this Round were inferior to the initial objectives, important progress was achieved, bearing in mind the resurgance of protectionism and trade distorting practices in recent years, mainly in developed countries. It is worth mentioning that Colombia adhered to GATT in 1981.
As from 1995, GATT has been replaced by the World Trade Organization (WTO), a multilateral organisim at the same level as the International Monetary Fund and the World Bank. This organism seeks to deepen the process of trade liberalization between nations so that it may contribute to a greater extend to stimulate world economic growth. Among its objectives are the following: liberalization of agricultural trade, elimination of proteccionist measures different to tariffs and quotas and the strengthening of the solution mechanisims of trade disputes between nations. Likewise, it seeks to extend its range of action to the exchange of services, the movement of capitals and technology and environmental measures related to world trade. With this new entity, it is hoped to make availabe a stable legal base for trade relations between all countries and relaunch world economic growth, bearing in mind new tendencies to trade opening, globalization and the competitiveness between nations.
¿What is the International Monetary Fund?
It is clear that to achieve fluency in world trade and in general in the economic development of the totality of nations, an international monetary and payment system is necessary which guarantees stability and transparency, mission to which the International Monetary Fund, created in 1944 in the famous Bretton Woods (USA) Conference, has been dedicated. At present, 173 countries are members of the Fund, including those of Eastern European which previously belonged to socialist regimes (some of which han been admitted even before the change in political regime). The same occurs with the Republic of China. As to the Soviet Union, it was admitted as a special member a the end of 1991 and once the States that made it up redefined their relation in with the Community of Independent States, 14 Soviet republics became members of the Fund since September 1992. Another significant adherence has been that of Switzerland, a country which traditionally had abstained seeking admission. In this manner, the IMF has become an organisim of almost universal afiliation.
The functions of the IMF plainly identify its position in the world economic environment:
To promote international monetary cooperation by advising countries about international monetary managment.
To promote the currency exchange stability, encouraging countries to mantain orderly exchange regimes, that is, avoiding that they alter the global exchange manaegment in order to vary competitively their exchange rates.
To help establish a multilateral system of payments for current transactions that occur between member countries and promote the elimination of exchange restrictions that make world trade expansion difficult.
To instill confidence in the member countries by making available, temporarily, for short terms and with adequate guarantees, the Fund’s financial resources, without resorting to measures that might hinder national or international prosperity.
To endeavor that no undue extension occurs in the deficit of the balance of payments of member countries.
To make sure there is an adequate availability of international liquidity, by complementing with Special Drawing Rights (SDR) the management between countries of the means of payments accepted internationally. The Special Drawing Right is an account unit, created and asigned to each country by the Fund relative to the size of its economy and that countries may use to make payments, withdrawing or depositing in thair account in the Fund. Its value is established with reference to the average value of a basket of currencies accepted internationally.
¿What is the International Bank of Reconstruction and
Development (IBRD)?
In the above mentioned Bretton Woods Conference it was also agreed to establish a multilateral credit organisim, the International Bank of Reconstruction and Development (IBRD), also known as The World Bank, which was in charge of financing the reconstruction of those countries affected by the war as well as those projects that would raise the quality of life and productivity of developing countries. The magnitude of the necessary resources to undertake these actions meant that the contribution of a great number of countries was necessary, each according to its financial possibilities. At present nearly 140 countries are members, including Colombia, who was one of its founders.
¿What is the International Finance Coorporation (IFC)?
The IFC is a entity attached to The World Bank specially in charge of favoring, through financial help and advise, the growth of private productive firms in member developing countries.
Economic Information
| Introduction | Statistics | Faq | Warning |
|
 |
