The Analysis of Policies of International Economic Organizations

obligatory courses

(in Polish)

Wymagania wstępne

Studenci powinni mieć podstawową wiedzę z zakresu ekonomii i ewentualnie współczesnej historii powszechnej (lub gospodarczej) Wymagania formalne

Studenci powinni mieć wiedzę z zakresu Mikroekonomii i Makroekonomii oraz Teorii Wymiany Międzynarodowej i Międzynarodowych Stosunków Finasowych.

Założenia wstępne

Dobra znajomość języka angielskiego jest konieczna. Wiedza z dziedziny powojennej historii gospodarczej będzie znacznym ułatwieniem w studiowaniu tego przedmiotu

1. Goal of the course: Analysis of the functioning of international economic organizations and showing the methods of economic analysis of their policies; understanding the institutional framework and autonomy in the external trade and financial policy of Poland and EU countries.

2. Basic contents: During the course we present the main principles of functioning of selected international organizations that regulate international trade and financial relations in the world and in Europe.

3. Methods of implementation of the subject: the subject is run by two teachers with practical professional experience resulting from working in international trade (R. Kokoszczyński) and financial (J.J. Michałek) organizations

4. Conditions of participation: the course is intended for students of the 2-th year of MA specialization in International Economics, for students after advanced courses in micro- and macroeconomics and after classes in advanced international exchange theory.

The aim of the course is to show the key mechanisms of functioning of the main international organizations regulating international economic, trade and financial relations in the world and in Europe. Thanks to this, students should understand what is the regulatory role of international economic organizations in the modern world economy and what are the economic, legal, and political foundations thereof in practice. Students should also understand the institutional limits and the scope of autonomy of the external trade and financial policy of Poland and other countries belonging to the European Union. The lecture is conducted by two lecturers. The first part will cover issues related mainly to international trade, and in the second part – to finances.

The trade part will explain the basic principles and practice of the action, through multilateral negotiations, GATT, and then the World Trade Organization (WTO). The attention will be devoted to understanding the mechanism of decision-making and dispute settlement in the WTO. This will allow students to understand the present, very limited scope of Poland's autonomy in the field of trade policy. The aim of this part of the course is to explain the basic principles underlying the international trading system, which has been developing since 1947 under the GATT and since 1995 has been operating within the WTO. During the lecture elements of the theory of multilateral negotiations will be presented, the economic effects of the main trade policy instruments, such as customs duties, quantitative restrictions, "voluntary" quantitative restrictions, subsidies or dumping. The main part will be devoted to the analysis of legal regulations of instruments used under the GATT / WTO system and to the discussion of the current practice.

In the financial part, a presentation will be made of the most important international financial organizations (and institutions) (hereinafter IFIs) or their groups. During the lecture, the most space will be devoted to the International Monetary Fund, both due to the scope and scale of its activities, as well as numerous controversies related to their assessment. Apart from the IMF, the subject of the lecture will also be international development banks and international organizations dealing with regulations and standards applicable on international financial markets (BIS, OECD, etc.). In all cases, apart from the presentation of the organizations themselves (or their groups), typical problems will be shown, the solving of which is the goal of these organizations.

The detailed lecture plan is as follows:

1. The history of the establishment of GATT (General Agreement on Tariffs and Trade) and the basic principles of this organization (MFN, non-discrimination, reciprocity of concessions): A general review of the Uruguay Round agreements. Poland in GATT.

2. The GATT / WTO theory: negotiations as a game: the importance of the principle of non-discrimination and reciprocity enabling maximization of the welfare.

3. Customs tariffs as the main instrument of trade policy: regulations of tariffs and the GATT / WTO objectives: History of trade liberalization during multilateral negotiations under the GATT in 1947-94;

4. Quantitative restrictions on imports (Article XI: significantly "voluntary" export restrictions and the Textile Agreement. Safeguard clauses against over-import: the role of Article XIX of the GATT and restrictions related to balance-of-payments imbalances;

5. Subsidies and countervailing duties: economic mechanism and regulations within the WTO; Specificity of instruments used in agricultural trade: WTO agricultural agreement (concept of "tarrification", tariff reductions and subsidies)

6. Dumping and anti-dumping duties: mechanisms and regulations within the WTO; GATT dispute resolution mechanism, changes in the mechanism of the WTO framework;

7. Dispute Solving Mechanism in international trade policy within the WTO

8. Doha round of multilateral negotiations (ministerial declaration from Hong Kong): agricultural negotiations and NAMA: why it is so difficult to conclude negotiations

9. The concept of IFI. The most important organizations with global and regional coverage. An attempt to classify the IFIs.

11-12. Evolution of the scope of the IMF. The role of the IMF in the crisis of individual countries and regional crises. Evaluation of the IMF's activities as a lender

13. IMF activities in the area of supervision of the international monetary system and the economic policy of member countries.

14. Organizations setting the standards for the functioning of the global financial system: G20, FSB, BIS and affiliated committees

15. Development banks: IBRD and regional banks. Their role in stimulating development and combating poverty.

• E. Chrabonszczewska (2005), Międzynarodowe organizacje finansowe, SGH, Warszawa.

• M. S. Copelovitch (2010), International Monetary Fund in the Global Economy, Cambridge University Press, Cambridge.

• W. Easterly (2003), Can Foreign Aid Buy Growth?, Journal of Economic Perspectives, 17, 23-48.

• Gospodarka światowa w warunkach globalizacji i regionalizacji rynków (2009), red. S. Miklaszewski, E. Molendowski, Diffin, roz. 6 (CEFTA).

• B. Hoekman, M. Kostecki (2000), Ekonomia światowego systemu handlu, WTO: zasady i mechanizmy negocjacji, Wydawnictwa Uniwersytetu Ekonomicznego we Wrocławiu, Wrocław 2011.

• J. Michałek (2002), Polityka handlowa. Mechanizmy ekonomiczne i regulacje międzynarodowe, PWN, Warszawa.

• T. Michałowski (2008), Międzynarodowy Fundusz Walutowy, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk.

• Polska w WTO (2001), red. J. Kaczurba i E. Kawecka-Wyrzykowska, IKiC HZ, Warszawa, roz. 1, 2, 4 i 11.

• J. Świerkocki (2007) Ekonomiczne przesłanki wielostronnej regulacji międzynarodowego handlu towarami, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2007.

• Lecture notes

• Websites of WTO, UE, IMF, IBRD, BIS, OECD and G-20

• Bagwell K., Steiger R. (2002) Economics of World Trading System, MIT Press, Cambridge.

• R. Baqir, R.Ramcharan, R.Sahay (2005), IMF Programs and Growth: Is Optimism Defensible?, IMF Staff Papers, 52, 260-286.

• R. Bolt et al. (2004), Economic Analysis of Policy-Based Operations: Key Dimensions, Asian Development Bank.

• J.M.Boughton (2000), From Suez to Tequila: The IMF as a Crisis Manager, Economic Journal, 110, 273-291.

• J.M.Boughton (2004), The IMF and the Force of History: Ten Events and Ten Ideas That Have Shaped the Institution, Working Paper 04/75, IMF.

• G.Bird (2007), The IMF: A Bird’s Eye View of Its Role and Operations, Journal of Economics Surveys, 21, 683-745.

• El-Agraa, A. (2004), The European Union, Economics and Policies, seventh edition, Prentice Hall.

• Krugman P. (1997) Is Free Trade Passe? Economic Perspectives no. 2.

• Picciotto, R. (2007), Development Effectiveness at the Country Level, UNU-WIDER.

• Rose A. (2004) Does the WTO really increase the Trade? American Economic Review, no. 1.

• Rose A., (2004) Do WTO Members really have more liberal trade policy, Journal of International Economics, No. 2

• Subramanian A, Wei Shan-Jin, The WTO Promotes Trade, Strongly but Unevenly, NBER Working Paper, no. 10024.

Knowledge:

Students know:

1. The concept of the world post-war economic order

2. The history of the creation and evolution of the methods of functioning of major international organizations: GATT / WTO, European Union, IMF, IBRD, BIS, OECD.

3. The basic principles of international trade policy regulation within the WTO

Skills:

1. Students on the basis of these classes will gain knowledge about the real way of functioning of the analyzed institutions and their management.

2. Understanding by students the goals and tasks of WTO and IFIs (first of all IMF), as well as changes in their mandate in the last decades and ways of managing them.

3. Understanding the nature of international economic conflicts and how to resolve them in selected international organizations

4. Understanding the present, rather limited scope of Poland's autonomy in the field of trade policy and to a certain extent in macroeconomic and regulatory policy.

The abovementioned skills will be useful in studying other issues and better understanding of previous classes in international economics, theories of international trade, international financial relations, macroeconomics of the open economy, common policies of the European Union, monetary integration.

These classes should be useful in undertaking professional work and independent analysis of professional texts in English, in which economic issues are written in legal language (issues on the borderline of economics and law).

Activity in the class, 2 essays