Exploring the Dynamics of Formal and Informal Institutions in New Institutional Theory
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New Institutional Theory
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- Understanding of institutions as social constructs, a collection of norms that structure the relations of individuals to one another.
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Formal Institutions
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- Institutions that influence behavior through laws and regulations.
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Informal Institutions
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- Institutions that influence behavior through norms, values, customs, and ideologies.
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United Nations
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- 192-member organization dedicated to the promotion of peace and stability of the world.
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General Assembly
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- Deliberative body of the UN made up of all member-nations, each with one vote regardless of size, wealth, or power.
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Security Council
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- Main peacekeeping body of the UN, composed of 15 members including 5 permanent members.
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Economic and Social Council (ECOSOC)
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- UN body concerned with economic and social issues such as trade, development, education, and human rights.
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International Court of Justice (ICJ)
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- UN body that makes legal decisions involving disputes between national governments.
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Secretariat
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- The staff of the UN, headed by the secretary-general.
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Bretton Woods
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- 1944 conference at which allied nations' treasury and central bank representatives met to establish the International Monetary Fund and the World Bank.
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International Monetary Fund (IMF)
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- Institution that fosters global monetary cooperation, financial stability, international trade, high employment and sustainable economic growth, and reduction of poverty.
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World Bank
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- Institution that lends money for development projects.
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Special Drawing Rights (SDRs)
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- An international reserve asset established by the IMF.
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Par Value
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- Stated value.
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World Trade Organization
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- An international organization that deals with rules of trade between nations.
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Doha Development Agenda
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- WTO extended conference on trade.
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Trade-Related Intellectual Property Rights (TRIPS)
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- Refers to the WTO agreement that protects copyrights, trademarks, trade secrets, and other intellectual property matters.
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Organization for Economic Cooperation and Development (OECD)
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- Group of developed countries dedicated to promoting economic expansion in its member-nations.
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Free Trade Area (FTA)
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- Area in which tariffs among members have been eliminated, but members keep their external tariffs.
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Customs Union
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- Collaboration that adds common external tariffs to an FTA.
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Common Market
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- Customs union that includes mobility of services, people, and capital within the union.
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Complete Economic Integration
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- Integration on economic and political levels.
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North American Free Trade Agreement (NAFTA)
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- Agreement creating a free trade area among Canada, Mexico, and the United States.
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Mercosur (Common Market of the South)
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- A South American customs union of Argentina, Paraguay, Brazil, and Uruguay.
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Association of Southeast Asian Nations (ASEAN)
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- Agreement among Southeast Asian nations that began as a security agreement and has developed toward a common market.
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European Union (EU)
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- A body of 27 European countries committed to economic and political integration.
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European Monetary Union (EMU)
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- EU group that established use of the euro in the 17-country euro zones.
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European Parliament
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- EU legislative body whose members are popularly elected from member-nations.
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Council of the European Union
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- The EU's primary policy-setting institution.
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European Commission
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- Body responsible for the EU's day-to-day operations.
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European Central Bank
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- The central bank for Europe's single currency, the euro.
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European Court of Justice
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- The highest court of the EU, it interprets EU law.
