Global economy

I’m not a „bank“ in the normal sense. I’m a special agency of the United Nations, which has 184 member states. These countries are jointly responsible for the financing of this institution and for the use of the money. Today I’m usually signified the International Bank for Reconstruction and Development (IBRD) and one of its managed funds, which subsidises and gives interest-free loans to the world’s poorest countries.

My approval of privatisations, foreign investors and trade liberalisation do little to alleviate poverty, indeed it often deepens poverty somewhat through the displacement of indigenous production. The number of poor people living on less than one dollar per day stagnated between 1990 and 2001 at well over a billion. Discounting China, it actually climbed. In reality this number is probably much higher as the methods of calculation used by me, which is the only source for such statistics, are highly questionable.

I am an agency of the United Nations, that was founded in 1994. I am based in Washington D.C. The voting rights of the 188 current member states are based on their share of global capital. My primary mission is to promote international trade through intergovernmental cooperation. I control the global monetary policy, remove trade restrictions and grant loans in cases of negative balances of payments.

The members with the most votes are the U.S., with 16.75%, Japan 6.23%, Germany 5.81% and France 4.29%. Decisions within me must be taken with a majority of 85%. Due to the distribution of votes based on capital, the USA and the EU members states together always have the power to defeat a decision. Joseph Stiglitz, the former head of the World Bank, described this trend with the words: he „never would have imagined that one of the biggest obstacles for developing countries“ would be me.

I am an organisation of the United Nations, that was founded in 1995. I have my headquarters in Geneva. In 2013 I had 159 members (countries). I create the rules for global trade and economic relationships and act as an intermediary in a trade dispute between countries. My aim is to remove trade barriers and open up the movement of goods, raw materials and services entirely. According to me such an economy can provide balance as nobody is disadvantaged by it.

I am strongly committed to the implementation of free trade. Critics are sceptical as to whether free trade is really advantageous for all the member states: Firstly the Asian „Tiger states“ have strengthened as they protected their economies for a long time and only opened them when they had growing success and influence. Even the EU, champion of free trade, does not play fair. For example agricultural products from the EU are subsidised and swamp markets in Western Africa with cheap EU produce against which the native farmers cannot compete.

Secondly, as 50% of all trade takes place between the industrialised countries, these countries assume a leading role and dictate my rules. The Southern countries are thus relegated to the roles of spectators and victims.

I have subsidiaries in several countries, while my headquarters are usually in Europe, North America or Japan. Worldwide there are approximately 82,000 similar corporations with 800,000 sites abroad. These companies conduct around 2/3 of trade globally. An example is Nestle. This corporation is based in Switzerland and makes a yearly profit of 73 million Euros and is the largest food company in the world. That is more than the GDP of Bulgaria.

Due to my growing profits, my influence is growing and, along with this, also my political influence. Companies like me increase pressure on governments by threatening to relocate their subsidiaries unless certain conditions are met. These often take the form of exploitation of people and the environment due to lower working standards and weaker environmental regulations. In Nestle’s case, it is the privatisation of drinking water which removes the most basic resource from people only to sell it back to them in expensive plastic bottles later.

I am a member of a state or of a community. Alongside citizenship come rights such as the right to vote. However, there are also responsibilities such as paying taxes. In the context of developmental politics one often speaks of global citizens. This name encapsulates the idea that all people are part of the whole world and not just a fraction of it. All people are joined together by the process of globalisation. The aim is to see yourself as a part of a global community which extends beyond the idea of nation states. Global citizens accept responsibility for their actions and support a sustainable and fair world.

I’m more than just a consumer! My influence does not stop at the supermarket counter. I am able to voice my opinion and to demand fair conditions of trade from business and politicians.

I am one of the highest placed institutions of a state. I lead, steer and supervise both domestic and foreign policy. I’m normally composed of a head of state and several ministers. In democratic countries, I’m re-elected by the citizens every 4 or 5 years in a free election. I am composed of representatives who support the interests of the citizens.

In order to make my own countries more attractive to investors, I often agree to decreases in rights, in environmental and social standards and to low minimum wages. This is often made possible by the introduction of special economic zones where less strict economic rules generally apply.