Wto & Oecd Comparing Power and Influence Essay Example

on Trade-Related Aspects of Intellectual Property Rights (TRIPs). Subsidiary bodies and additional committees operate under each of these entities.

It should be noted that around 2/3 of developing countries are members of the WTO. However, the negotiations within the WTO do not involve all members reaching a consensus. Instead, informal negotiations between small groups of countries take place in the Green Rooms or Mini-Ministerials. This exclusion of developing countries from the negotiations, due to their inability to send representatives to every meeting, raises concerns about power-based bargaining that favors industrial countries. The OECD's structure revolves around three main bodies.

The highest body of the OECD is the Council, which meets once a year at a ministerial level and twice a month at an ambassador level. It includes representatives from each member-country. Similar to the decision-making procedure of the WTO, unanimous agreement is necessary for all decisions and recommendations, with countries having the option to abstain from voting. If a country chooses to abstain, it is not obligated to accept the corresponding recommendation. The Secretariat, led by the Secretary General, assumes all duties and responsibilities emanating from the Council. Over time, the position of Secretary General has been strengthened with an ambassador-level chair. The organization consists of eleven directorates organized according to expertise criteria.

The organization's secretariat and directorates primarily operate as a think tank, identifying issues early on, proposing solutions, and presenting them for discussion. Specialized committees with representatives from member countries and non-members convene to advance ideas and monitor progress in various policy areas like economics, trade, science, employment, education, and financial markets. The Development Assistance Committee (DAC) plays a significant role in regulating assistance for developing

countries and determining their development status (DAC list 1).

While the majority of WTO members are developing countries, the OECD is mainly composed of developed countries and often known as the organization of first-world nations. The World Bank has recognized that most OECD members are high-income countries. This contrast highlights the power of the WTO despite having a larger number of developing country members who often do not participate in crucial rounds and meetings.

One explanation for this disparity is the limited resources and capabilities among many smaller developing nations mentioned earlier. As a result, a few influential countries shape policies for many nations worldwide, leading to a process of global trade liberalization.

One argument is that the extensive policies in the WTO-agreements have an impact on national policies of member countries, including economic policy, welfare, healthcare, and environmental policies. These agreements also affect national and European law because member-states are required to accept the WTO's treaty with all bodies, such as the Dispute Settlement Body (DSB), which can make decisions that override national law. The DSB exists to resolve disputes between members when bilateral agreements cannot be reached. The WTO considers dispute settlement to be essential for the stability of the global economy and sees it as a unique contribution. By having a dispute settlement mechanism, the WTO has become a highly influential organization. However, some anti-globalization activists and NGOs see these measures as a threat to trade interests without considering human rights and environmental concerns.

The power to enforce decisions of the OECD is not as strong as that of the WTO, although it has a broad mandate. While consensus can result in binding treaties, these do

not directly affect member sovereignty like the dispute settlement process of the WTO. Member states have the option to abstain from voting on certain recommendations, but those who agree must propose changes to their national law. Despite being based on non-binding treaties (soft-law), economic policy coordination still has an integrative impact. Consultations between government representatives contribute to understanding each state's interests and actions. Moreover, member countries are required to explain themselves to the Council if they deviate from agreed policies. The OECD also influences political decision-making in negotiations within the Council and committees, which then extends to other institutions such as the WTO or IMF.

Indeed, the direct impact of all the substantial research work and statistic data provided by the Secretariat is difficult to measure, but it is seen as a very important orientation guide, especially to small member countries. Essentially, the member states of the OECD are required to liberalize the flow of products and services, as well as to maintain and extend the transfer of capital.Likewise, the WTO’s Trade Policy Review Body and the OECD’s Committee on Capital Movements and Invisible Transactions (CMIT) observes the implementation and obligations that come as a result of the liberalization of service and capital transfer.

Given the general lack of binding rules, the OECDs decision-making process within negotiations is of a normative character, and cannot be compared to the strict implementation structure of the WTO. The WTO as a successor of the GATT was established develop rules for international trade with a view to liberalize global trade. The OECD, by contrast, grew out of the OEEC, which had the mission to coordinate the Marshall Plan.

Since its establishment, the

OECD has been dedicated to helping governments effectively utilize their opportunities in line with global changes and challenges. This requires considering all potential issues of a nation as influential factors. The OECD conducts a prominent study called the Programme for International Student Assessment (PISA), which emphasizes the importance of quality education for a nation's human potential and economic growth.

With increasing globalization, international trade organizations such as the WTO and the OECD have become more important in their respective roles. This is evident from the increasing number of countries seeking membership in these organizations.

In summary, it can be observed that both organizations mutually influence each other's function and impact. The policies implemented by the OECD shape a nation's mindset by presenting optimal perspectives on global economic policies while also promoting cooperation with the trade agreements established by the WTO.