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International Economic Organizations (Spring 2007)
GraduateSchool of International Studies, YonseiUniversity
Thursdays, 9:00-12:00
Lecturer: Keon-Woo Lee
Office: Room 1605, PlatinumBuilding, 156, Jeoksun-dong, Jongno-gu
Phone: (02)733-6699, 016-234-2474 Fax: (02) 733-6698
E Mail:
Description
There are many international economic organizations (IEOs) playing an important role in the orderly growth and development of the world economy. They are
- International Monetary Fund (IMF) to promote international monetary cooperation and to prevent, predict and manage financial crisis.
- The Chiangmai Initiative to supplement the role of IMF in ASEAN + 3 countries.
- The World Bank Group Organizations, namely, IBRD, IDA, IFC, MIGA to promote economic development and poverty reduction,
- Regional Development Banks such as ADB, IADB, EBRD, AFDB to promote economic development and regional cooperation in their respective regions,
- The World Trade Organization to promote fair international trade,
- European Central Bank to manage a common currency in Europe,
- Bank for International Settlement to safeguard the financial soundness of commercial banks,
- And various other organizations promoting international standards and good practices in their respective fields.
With the globalization of the world economy, these IEOs are expected to play an increasing role in the world economy. The main purpose of this course is to equip students with basic knowledge and insight on these IEOs, specifically their history, objectives, operational policies, functions as well as recent debates related to their effectiveness. This course will be highly useful for those students who are interested in building their career in international organizations, government, global companies or financial institutions.
Modus Operandi of the Class:
The lectures will be supported with Power Point presentations wherever feasible. However, students are expected to digest the pre-assigned reading materials before they come to the class for a more meaningful participation in the class discussion. The lecture schedule given below indicates the name of institutions to be covered as well as the suggested reading materials for each lecture. Students are also encouraged to review other information in the website of the IEOs to be covered for more meaningful contribution to the class discussion. The additional reading materials will be suggested during class or will be posted on the course home page You are suggested to visit this site at least once a week.
Students, individually or in a group, will be assigned to make presentations on some of the IEOs or specific issues. Considering the large number of IEOs to be covered by this course, there will be no textbooks for the class. However, students are recommended to prepare a binder to compile reading materials and Power Point slides presented by the lecturer and colleagues .
Evaluation
The final grade will be determined based on the following weights:
Mid-termtest: 30%
Final examination: 40%
Presentation, participation in class discussion and attendance: 30%
Total 100%
Tentative Lecture Schedule,
Week 1. Course Outline,
Major developments and trends in development cooperation after World War II.
The role and activities of the Development Assistance Committee (DAC) of OECD, given its strong influence on the operational policies of IEOs.
Week 2. Millennium Development Goals (MDG):
The origin and contents of MDG, which have now become the backbone of policies adopted by all development agencies in their day to day operations.
Reading: United Nations Millennium Declaration (A/RES/55/2) dated 18 Sept. 2000
Report of the International Conference on Financing for Development, MonterreyMexico, March 2002 (United Nations)
Week 3. International Monetary Fund (IMF)
IMF’s role in preventing, predicting, managing financial crises.
Review of the effectiveness of IMF (the Meltzer Report and OGA Report)
Reading: . What is the International Monetary Fund?
Barry Eichengreen, Toward a New International Financial Architecture, IIE (pages 1-18)
Week 4. IMF and the financial crisis in Korea
IMF’s contribution in solving the financial crisis in Korea and the Letter of Intent, stipulating policy reform agenda and the conditions for IMF Loan.
The Currency Swap Arrangement under the Chiangmai initiative
Reading: The Letter of Intent of the Government of Korea addressed to the Managing Director of IMF dated December 24, 1997 ( ) and dated May 2, 1998 ( )
Week 5. . The World Bank (IBRD and IDA)
Goals and objectives in relation with MDG
Operational tools and modus operandi
Issues and challenges faced by the World Bank
Reading: The Letter of Development Policy from Korean Government dated September 24, 1998 to the President of the World Bank;
Week 6 Other Bretton Woods Institutions: The role and functions of International Finance Corporation (IFC) and Multilateral Investment Guarantee Corporation (MIGA)
Week 7. Asian Development Bank (ADB):
ADB’s role and function in general
ADB’s initiative in assisting the Great-Mekong and Central Asian countries under its Regional Economic Cooperation Program.
Reading: Regional Economic Cooperation in Central Asia,
Regional Economic Cooperation in the Great Mekong Sub-region,
Week 8. Mid-term examination
Week 9. European Bank for Reconstruction and Development (EBRD):
EBRD’s role in transforming centrally planned economies intoa market economies after the break-up of the USSR.
The feasibility of the proposed Northeast Asian Development Bank and the North-east Asia Economic Hub.
Reading: Moving Transition Forward
Week 10. The Bank for International Settlement:
The core principles for effective banking supervision (Basel II)
And its implications to commercial banking
Reading: Basel Committee on Banking Supervision,
Basel Committee Core Principles for Effective Banking Supervision, Oct. 2006
Week 11. The European Central Bank
From a common market to a common currency, the Euro.
The feasibility of the proposed Asian Dollar.
Reading: The European Central Bank, The Eurosystem, The European System of Central Banks (pages 4-19)
Week 12. The World Trade Organization
WTO system vis-à-vis Free Trade Agreements
Doha Development Agenda: World BankTrade Note, dated December 17 2003
Reading: World Trade Organization
10 benefits of the WTO system
Week 13. International Standard setting bodies (Student Presentations)
OECD: Principles of Corporate Governance
IASB: International Accounting Standards
IFAC: International Standards on Auditing
IOSCO: Objectives and Principles of Securities Regulation
IAIS: Insurance Core Principles
Week 14 Other institutions (Student Presentations)
International Labor Organizations
APEC
NAFTA
UNDP
UNIDO
Week 15 Final Examination
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