International Economic Organization – SS3 Economics Lesson Note (Second Term)

International economic organisations are bodies formed by countries to cooperate on trade, finance and development. Examples include ECOWAS, ECA, the IMF, the IBRD (World Bank), the African Development Bank, OPEC, UNCTAD and GATT. Each has stated aims, such as promoting economic cooperation, giving loans, stabilising oil prices or regulating international trade.

Behavioural objectives

By the end of the lesson, students should be able to:

1. give examples of international economic organisations;
2. state the aims and objectives of each organisation.

Instructional techniques and materials

Instructional techniques

• Identification
• Explanation
• Questions and answers
• Demonstration
• Videos from source

Instructional materials

• Videos
• Loudspeaker
• Textbook
• Pictures

What is the Economic Community of West African States (ECOWAS)?

ECOWAS is a sub-regional organisation formed by fifteen West African countries in 1975. Lagos was originally its headquarters before it was moved to Abuja. It now has sixteen member states as a result of the inclusion of Cape Verde. Its main aim is to promote economic cooperation among members, for the development of the sub-region and the African continent.

Aims and objectives of ECOWAS

1. Promotion of cooperation and development among member nations. This is the major reason behind the formation of ECOWAS. The development agenda was meant to cut across all sectors of each member state’s economy. The result is to raise the standard of living of citizens of member countries.
2. Harmonisation of policies. The commission also aims at harmonising the different sectoral policies of member states, for example agricultural policies and monetary policies.
3. Abolition of obstacles to free movement. ECOWAS aims to encourage the free movement of citizens from one member state to another.
4. Abolition of trade restrictions. ECOWAS also aims to make sure that goods and services are not subjected to quantitative and administrative restrictions among member states.
5. Establishment of a common tariff. ECOWAS also aims at establishing a common tariff and a common commercial policy among member countries.

What is the Economic Commission for Africa (ECA)?

The Economic Commission for Africa (ECA) was founded in 1958 as an organ of the United Nations. It aims to contribute continually to the development of Africa. Its aims and objectives are:

1. To promote the social and economic development of Africa as a whole.
2. To conduct economic research and provide useful conclusions that will help Africa develop.
3. To speed up the economic integration of the African sub-region.
4. To help in the establishment of the African Development Bank.
5. To contribute to the training of economic manpower that aids economic development.

What is the International Monetary Fund (IMF)?

The International Monetary Fund (IMF) was established in 1944 after a modification of the Gold Currency Standard. Its headquarters is in Washington DC, United States of America. Its aims and objectives are:

1. To serve as a clearing house for member nations.
2. To promote international monetary cooperation and the expansion of international trade.
3. To give advice and help to member nations.
4. To eliminate exchange controls.
5. To contribute to the development of member nations.

What is the International Bank for Reconstruction and Development (World Bank)?

The IBRD, also known as the World Bank, is an international financial institution and an organ of the United Nations. It was established with the main objective of providing development funds (in the form of loans) to underdeveloped countries of the world.

Aims and objectives of the IBRD

1. To assist in the reconstruction of territories affected by World War II.
2. To provide technical assistance to member nations.
3. To promote private foreign investment by supplementing private investment when private capital is not readily available on reasonable terms.
4. To help raise the standard of living in underdeveloped countries.
5. To promote international trade and balance of payments.

What is the African Development Bank?

The African Development Bank was established in 1964 to finance development projects in Africa. Its headquarters is in Abidjan, Ivory Coast (Côte d’Ivoire). Its aims and objectives are:

1. To grant loans to member states and private firms to speed up economic activities that will lead to Africa’s development.
2. To promote development projects that will facilitate the economic development of African countries.
3. To provide technical assistance for development projects and programmes undertaken by member states.
4. To provide funds for infrastructural facilities such as electricity and water.
5. To contribute to the economic integration of African countries.

What is the Organization of Petroleum Exporting Countries (OPEC)?

OPEC was established in 1960 by five oil-exporting countries. It now has thirteen member countries. Its main objective is to protect the interests of its members and form an economic bloc. Its aims are:

1. Stabilisation of the price of oil in the world market.
2. Fixing and allocating production quotas to member states.
3. Protecting its members from exploitation by multinational oil companies.
4. Stabilisation of the oil income of member states.
5. Ensuring a steady supply of oil to consuming nations.

What is the United Nations Conference on Trade and Development (UNCTAD)?

UNCTAD was established in 1964 to complement the activities of the General Agreement on Tariffs and Trade. Its headquarters is in Geneva, Switzerland. Its aims and objectives are:

1. To promote international trade.
2. To help poor nations solve their balance of payments problems.
3. To aid economic development.

What was the General Agreement on Tariffs and Trade (GATT)?

GATT was an agreement among many countries, aimed at regulating international trade. It was signed in October 1947 by twenty-three countries in Geneva, Switzerland, and lasted until April 1994. Its aims and objectives were:

1. To regulate and expand international trade.
2. To raise the standard of living of the world.
3. To develop and make full use of the world’s resources.
4. To come up with a tariff that benefits both developing and developed nations.

Evaluation

1. Give three examples of international economic organisations, stating their aims and objectives.

Classwork: As in evaluation.

Assignment

1. State the headquarters of ECOWAS, the IMF, the African Development Bank and UNCTAD.
2. State two aims of OPEC.

Teacher’s note: commend the students positively at the end of the lesson.