World Trade Organisation and Other Organisations in New Economic Context - Case Study Example

WORLD TRADE ORGANISATION Insert Insert A political economy is the relationship between economics, law, and politics. It also focuseson how institutions develop in social and economic systems like capitalism, socialism, and communism. World Trade Organization (WTO) is an economic system of collective ownership; the property is owned by the society as a whole mainly to discourage private ownership. The policy designed by the WTO concerning goods and services is for a mutual benefit by the participating countries. The consensus is meant to ease the flow and eliminate exploitation that may result from the demand-based market which is profit making. World Trade Organization has roots in trade policies, give-and-take obligations, and the communal charity. The belief that the economy is planned and coordinated and does not have to suffer from the business cycle is inherent in WTO foundations. In most cases, economic planning applies to factors of production while the allocation of resources is the design of the WTO (A Marxian Economist (anon.), 1952). The WTO board members are the member countries representatives who ensure that policies implemented are friendly. In a socialist economy, ownership varies, it can be commonly owned by the society as a whole, owned by workers cooperative or owned by the government. The management of enterprises in the WTO is one that fosters self-governance and self-management that is equal power relations in the workplace for professional sovereignty. All workplace hierarchies should be observed including the technical department remains in place to coordinate the hierarchy of the farm and provide directive on how to accomplish goals (Horvath, 1982). To eliminate evils of capitalism in the economy, a mutual consensus regarding the utilization of the resources available on earth is imperative. A planned economy which distributes employment opportunities among the people who are able to work, and this will guarantee a livelihood to every child, man and woman” (Albert, 1949). Banks, protection firms, telecom organizations, visit administrators, in networks and transport organizations looking to work together abroad can now appreciate the same standards of free and reasonable that initially just connected to exchange products. The WTOs protected innovation understanding adds up to principles for exchange and interest in thoughts and imagination. The principles state how copyrights, licenses, trademarks, topographical names used to distinguish items, mechanical plans, incorporated circuit design outlines and undisclosed data, for example, competitive innovations "protected innovation" ought to be secured when exchange is included. Nations convey the question to the WTO in the event that they think their rights under the ascensions are being encroached. Judgments by uniquely delegated autonomous specialists are taking into account elucidations of the understandings and individual nations duties. The framework urges nations to settle their disparities through the conference. Fizzling that, they can take a precisely mapped out, stage-by-stage strategy that incorporates the likelihood of the decision by a board of specialists and the opportunity to request the decision on lawful grounds. The Trade Policy Review Mechanisms motivation is to enhance straightforwardness, to make a more prominent comprehension of the approaches that nations are embracing and to survey their effect. Numerous individuals additionally see the audits as useful criticism on their strategies. Production quotas characterize WTO where all farms, mines or factory that operate are targeted to foster sustainability while reducing on process approaches that pollute the environment. Full employment system that every person who is capable of working is ensured. In case of surplus production, the central authority would provide a platform for then to decide to either increase or reduce input quota. There is a five-year plan put in place for the long-term development of key industries and the government (Walton and Kaplan, 1980) determined allocation of resources especially in the member states. As compared with other trade organization where supply and demand determine prices of commodities, the leadership in the WTO determines the amount to be produced and the price of each commodity produced. The third generation consideration by WTO is made with the optimum utility of available resources to sustain current populace. As in the case of coffee, when demand increases, prices rise for more profits if tea demand lowers the price of tea is lowered, and production reduced. In case of surplus production, the central authority would decide to either increase or reduce input quota (Aversa, n.d.). Depending on the public to control all production centers, and levels are at times very dangerous, the government tends to deal with other needs leaving out basic needs. Most states under WTO enjoy such benefits and the economic transition that is segmented in terms of each member country needs and capabilities. The idea has been considered a source of economic will and hence the political concern (The Successful Practice and Implementation of the Socialist Market Economy, 2002). WTO decision body sits and decides of trade regulations in a fashion that offers them security in the economic concept. They vote to pass a policy or give a unanimous decision. Politics play a part and affects member states individual relations. For example, a nation that does not support genetically modified foods and one that is in support will be affected in terms of trade commodities. The allocation of resources and trading of goods and services is decided by firms and household sustainability in determining prices of goods and services. Private property, wage labor, competitive markets and capital accumulation in member countries of WTO may not have direct influence yet their design leads to an increase in economic and political power. The wealthy states are able to call shots more than the developing states who offer little in the international market. The cost of goods and services and the compliance by consumers to pay for them determine economic output and allocation of resources. Customers decide purchasing according to their potentiality and preference. Though the system is for international relations, the government must provide best conditions for markets to thrive in legal structures, and sufficient infrastructure are put in place by the government. Under normal circumstances, the government control is limited (Cain, 1985). The industry provides equipment used for trading and secure trade terms. The government provides the personnel and policies as determined by the WTO. The community governs trade within their territories. Education systems on the other hand teach the mandate of the WTO and its success hence equip its citizens with knowledge concerning the operation of the international trade to avoid enmity in the market, which should only be governed by the state; demand, as well as supply. Medical care is also a mixed system is most countries or states. Most medical care services are paid for by insurance in high-income states. Most governments encourage all its public to get an insurance cover; the government given insurance covers by their employers while the unemployed are provided covers the employed. TV news broadcasting by profit-making networks and stations do not make profits directly from their viewers; they make money through advertising. Companies who may wish to advertize their products buy broadcast time from TV companies thus profit for the broadcasting companies. WTO provision of reliable news by broadcasting companies is a public service. TV channels also make profits through airing of sports especially professional sports across nations, and the trade terms must be fully implemented. Before airing, broadcast time must be paid to profit the source and the firm offering the service. Owners of franchise gather money from professional sports, the fans paying to watch the sport and TV channels that may need to air the sport. Pharmaceutical companies are in most cases regulated. The production of pharmaceutical is governed by the state in most countries; public money is used in research made by the companies. Private companies exist for dispensing of drugs in most cases. Airline operations are regulated due to its risk nature. The WTO operates solely the trading terms in the member sustainability while the airports are in most cases funded and owned by the public sector. Childcare is always a family affair, it must be provided by family members, the government and markets only supplements for the provision of the care. WTO involves freeing the private enterprises from bond imposed by the government, reducing social safety net that is cutting public expenditure and reducing regulations imposed by the government that may limit profit gain. It also involves privatization, which is selling of government-owned enterprises, provision of goods and services to the private sectors (Burgin, 2012). The system aims at pressuring the poor in the society to get solutions to their problems that include health, education and security. To achieve neo-liberalization, the state must achieve liberalization, privatization and globalization. The WTO, the World Bank (WB) and international monetary fund (IMF) are neoliberal institutions that set out rules that govern free international trade between nations. WTO eliminates all barriers to achieve a free trade, the World Bank and international monetary fund work on liberalization of the domestic resources and actual privatization of organizations in developing countries. Through these understandings, WTO individuals work a non-prejudicial exchanging framework that spells out their rights and their commitments. Every nation gets ensures that its fares will be dealt with reasonably and reliably in other nations businesses. Every nation guarantees to do likewise for imports into its own business. The framework additionally gives creating nations some adaptability in executing their duties. Most countries have adopted and implemented the liberal trading policies. All these systems have been in operation in different states, their advantages and disadvantages analyzed in the states have enabled countries choose the right economic systems, some states have changed to economic systems they perceive viable for their economic growth (Johnson and Kalecki, 1973). The WTO has planned economy is planned and coordinated and does not suffer from the business cycle in the case of capitalism. In most cases, economic planning applies to factors of production but not the allocation of resources. Full employment system that every person who was capable of working was insured employment. In case of surplus production, the central authority would decide to either increase or reduce input quota. Full employment system that every person who was capable of working was insured employment. In case of surplus production, the central authority would decide to either increase or reduce input quota. Conclusion There is a five-year plan put in place for the long-term development of key industries and the government. Agrarian economies had in place the communist system; Lenin incorporated farmers and peasants since only industrial firms could not succeed in implementing the revolution. Communist economies failed due to unplanned agriculture and failure to establish a classless society. Though the system is fully private, the government must provide best conditions for markets to thrive in legal structures and sufficient infrastructure are put in place by the government but in case of war, the government takes full control of the system. Both private and public hospitals exist, and one chooses the one he/she can afford. Doctors insist that their aim is to help patients and not to make a profit, so there is no need for government regulation. In the Soviet Union that was a socialist economy, the government diverted resources to military to strengthen countries security that lead to low supply of soap, foodstuffs and television sets among other basic commodities many people were unable to obtain this stuff due to low supply. The system aims at pressuring the poor in the society to get solutions to their problems that include health, education and security. To achieve neo-liberalization, the state must achieve liberalization, privatization and globalization. List of References A Marxian Economist (anon.), (1952). The Structure of a Capitalist War Economy. Mon. Rev., 4(1), p.21. Amin, S. (1982). The Struggle for Control of the World Capitalist Economy. Mon. Rev., 34(1), p.47. Aversa, G. (n.d.). Socialist Market Economy. SSRN Journal. Bieler, A. (2011). Labour, New Social Movements and the Resistance to Neoliberal Restructuring in Europe. New Political Economy, 16(2), pp.163-183. Bieler, A. (2011). 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The Successful Practice and Implementation of the Socialist Market Economy. (2002). Chinese Economy, 35(4), pp.39-74. Thirkell-White, B. (2007). The International Financial Architecture and the Limits to Neoliberal Hegemony. New Political Economy, 12(1), pp.19-41. Wallerstein, I. (1975). Class-Formation in the Capitalist World-Economy. Politics & Society, 5(3), pp.367-375. Walton, J. and Kaplan, B. (1980). Social Change in the Capitalist World Economy. Contemporary Sociology, 9(1), p.131. Žižek, S. (2010). Some concluding notes on violence, ideology, and communist culture. Subjectivity, 3(1), pp.101-116. Appendix Figure 1: Model of Communist Ideology Source: Boundless “The communist economic system” boundless business. Boundless, 14 Nov.2014. Read More