a.LDCs, NICs, and EDCs
The “Dependency theory” states that “underdevelopment and poverty in the Less Developed Countries (LDCs) is the result of exploitation by the Economically Developed Countries (EDCs). The more industrialized countries of the North are normally seen as the most developed countries with a GPB Dependency approach, contrary to the Marxism, thinks that the developed countries are making of the Least Developed Countries a large external market, a source of primary product, such as oil, and a bloc for profitable investment opportunities with low-wage labor.
b. The OECD
The Organization for Economic Cooperation and was created in 1961 by the United States, Canada, other 15 countries in the Western European bloc and Turkey. It admitted mostly some least developed countries that had close economic ties to developed countries explains Rourke (p.431). 30 members of this economical group are developed countries. It serves as a forum to discuss economic issues while offering technical assistance to member in need. About 70 Less-Developed Countries such as Brazil and Least Developed Countries such as Sub-Saharan Africa are linked to the OECD.
c. The Group of Eight (G-8)
The G-8 constitutes the group of the eight more industrialized countries in the world. The G-6 started in 1975 in order to face some important global issues such as the warmth planet and also important economic concerns. Initially composed of France, West Germany, Italy, Japan, the United Kingdom, and the United States, the G-6 became the G-8 with the integration of Canada (1976) and Russia (1998). One of the political goals of the most industrialized countries was to support the non communist world by providing financial and technique support to the countries facing inflation after the oil crisis in 1970, and the consequences of the cold war ended in 1997. ((www.cfr.org)
d. The UNICEF
The United Nations Children’s funds has been created in 1946 after the WW II in order to provide food, clothing and health care to people in Europe severely affected by the after war situations. European children, at that time, faced famine and diseases. The first administration that provided for the kids in Europe had officially become a part of the United Nations in 1953. Then, the UNICEF started a global campaign against yaws and some other globally threatening diseases, reports the UNICEF official website (www.unicef.org). Six years later, the United Nations had adopted the Declaration of the Rights of the Child which defined the basic rights of all children in the world to have access to health care, education, shelters and nutrition. UNICEF is now one of the most powerful wings of the United Nations providing to the Least Developed Countries kids important basic cares.
e. The GATT and WTO
The basic World Trade Organization (WTO) started with 23 countries after the World War II. They were devoted to International economic cooperation in the frame of the “Bretton Woods” multilateral agreement, and included initially the World Bank and the International Monetary Fund. The 23 countries members of the GATT were among the 50 primary countries to draft the basic agreement of the International Trade Organization. After the opening of the trade barrier between the basic 23 countries of the GATT during 1946, the negotiations allowed about 45,000 tariffs concession for over $10 billion. The World Trade Organization cannot be considered as a simple extension of the GATT. It replaced it completely in order to provide a better international permanent Institution. The GATT has existed until 1995. Since then, “the WTO has the mission to deall with the complexity of the GATT and handle the disputes that normally arise under the GATT.. The headquarters are in Geneva, Switzerland,” recalls Rourke (p.422).
f. The IMF
The International Monetary Fund has been created with the theory of New International Economic Order. This institution has the mission to stabilize the flow of dollars, euros, yen, pounds, and other currencies (Rourke, p. 424). It has been created in the early 1940 because the United States thought it was important to create stability in the international change market. IMF started its operations in 1947 with 44 countries as members, (Rourke, p.425). With the severe impact of the New International Economic Order on the Least Developed countries, the IMF has increased its intervention in this
g. The NAFTA
The North American Free Trade Agreement has been adopted in 1994 to create a free trade market between Mexico, Canada and the United States. This trilateral block has agreed to eliminate tariffs between them three. More than one half of the United States imports from Mexico, and also one third of the United States exports to Mexico are free of tariffs. It has been said by the critics that Mexico has benefited a lot from the NAFTA by reducing the poverty level and by increasing the income level for people in Mexico. On the other hand, the Mexican farmers had to face the brutal competition of the industrialized produced food from United States, which makes it difficult for the hands based agricultural techniques to survive.
On an industrial level, some big American companies have outsourced their business in Mexico low-wage workforce is employed, causing a decrease of job opportunities for American blue collars.