>>>>Dean Grillot: Now that we've explored a little bit about the history of the global
economic system before the 20th century, let's talk little bit about the 20th century now,
particularly post-World War Two global economic institutions. At this point in time after
the Second World War, the United States really emerged as a major global player-- as the
one country that really was significantly involved in in not only global security relations,
but in global economic relations. The United States of course played a very large role
in helping to rebuild Europe, Asia, and other war-torn parts after the Second World War.
As a part of that rebuilding process, the United States and its European allies began
to establish a global financial system and various institutions that were really focused
on global economic growth. Following the Second World War, there was a meeting that led to
what we call the Bretton Woods economic system. The Bretton Woods economic system is composed
of various financial institutions that were focused on global economic development and
global economic growth. So institutions like the International Monetary Fund, the World
Bank, institutions that were really meant to help loan money and provide guarantees,
help change and and reconstruct financial institutions, infrastructure so that all of
these war-torn countries could redevelop. Another important financial institution after
the Second World War and part of this Bretton Woods system is the GATT: The General Agreements
on Tariffs and Trade. This is also the precursor to today's World Trade Organization. So through
these organizations countries are really trying to work together to help limit and reduce
barriers to trade, so that we can have a more open and free-flowing economy. There have
also been very important regional organizations or regional institutions regarding the economy
that have emerged. In Europe, shortly after the Second World War, the European Coal and
Steel Community emerged in order to regulate those particular commodities. Those commodities
coal and steel were very important at that time to development. So there were agreements
about trade regarding tariffs and quotas and barriers to trade to help share those goods
across the European Community. Now the European Coal and Steel Community eventually evolved
into something called the European Economic Community, and then the European Community,
and then the European Union. So you can see how this one regional economic institution
actually expanded beyond particular commodities to regulating the entirety really, of the
economy in Europe. Outside of Europe we also see other types of trade agreements emerging.
NAFTA for example, the North American Free Trade Agreement is an agreement in North America
between Canada, the United States and Mexico that helps regulate or at least open trade
between those three countries. Central America has also done this with an agreement called
CAFTA-- in collaboration with the Dominican Republic as well, to help open trade and reduce
barriers and trade between Central American countries. Other economic institutions can
be found all around the world in Asia and Africa. So global institutions and regional
institutions are very important for helping to regulate the global economy today. Other
players are institutions like the G8-- the Group of Eight, the eight most wealthy nations
in the world, the most industrialized nations in the world. You also have the addition of
the G20-- the twenty most industrialized nations in the world, the twenty wealthiest nations
in the world. These groups get together and meet regularly to talk about issues of trade
and finance and the importance of regulating or deregulating practices in the global community.
Now there's an additional group the Group of 77, the G77, has emerged in collaboration
with the United Nations. This group is kind of a counter to the G8 and the G20 in that
it's developing nations wanting to make sure that their voice is also heard in the global
community. So institutions like the G8, the G20, the G77 are important players in today's
global economy. Finally, it's important to mention a nongovernmental organization called
the World Economic Forum. This has become an important player in today's global economy
in that it brings together owners of business, leaders of enterprise around the world to
meet with government leaders to talk about the importance of global economic relations.
So lots of governmental organizations, a nongovernmental organization and others are important today
in helping us understand the institutional practices of global economic relations.