Management of the international economy
Opening up to trade and international flows of capital makes economies interdependent. International efforts to manage the international economy are prior to the 2008 crisis and the Covid-19 crisis which, due to globalisation, have affected and continue to affect the entire country. However, these economic integration efforts have intensified due to the pressure of the crisis.
The specialised institutions most directly involved in the international economy management efforts are:
- the International Monetary Fund (IMF);
- the World Bank Group;
- the Multilateral (Regional) Development Banks;
- the World Trade Organisation (WTO)
- the Bank for International Settlements (BIS)
- the Organisation for Economic Co-operation and Development (OECD);
- Financial Stability Board.
You will find more information about the economic and financial institutions here.
These institutions work within the limits of their respective competences, according to their own decision-making procedures. The essential consensus between States on the role of these different institutions is often prepared elsewhere, within civil society or in other international (United Nations) or regional organisations. State representatives also meet regularly in official ad hoc contexts, to discuss economic and financial issues of international importance, the “G”: G7 and G8, for advanced countries, G24 for emerging and developing countries, and lastly the G20, which comprises up to 22 advanced, emerging or developing countries.
The G20 summits held between 2008 and 2011 attempted to identify and take suitable measures to prevent a repeat of the 2008 financial crisis, particularly through financial regulation and more appropriate supervision of operators. For those countries which have the resources, this means:
- implementing recovery policies;
- providing financial support to countries in need;
- continuing to provide aid to developing countries.
Upcoming G20 summits will focus on the measures needed to boost the global economy in response to the COVID-19 crisis.