Economic: WTO, G7, G8 & G20 (Edexcel A Level Politics): Revision Note

The role and significance of the World Trade Organisation (WTO)

• The World Trade Organisation is an intergovernmental organisation that focuses on improving the global economy

  • Its aim is to strengthen global economic development by promoting stronger trade relations between states

• The WTO was established in 1995, following earlier international organisations that focused on trade, including the General Agreement on Tariffs and Trade (GATT)

• It negotiates trade agreements covering goods, services, and intellectual property

  • The WTO strongly advocates free trade between states

  • It provides a formal platform for settling trade disputes between states

• Most states in the world are members of the WTO or are in the process of joining

  • Current accession states include Sudan, Uzbekistan, and Bosnia and Herzegovina

Evaluation of the World Trade Organisation

The G7 and G8

• This intergovernmental organisation was established in 1975 by a group of highly established, economically-developed nations

  • Leaders of these countries meet each year to discuss economic, political and security issues

  • The Managing Director of the IMF usually also attends

• By 1976 the group included

  • The United States

  • The United Kingdom

  • France

  • Germany

  • Italy 

  • Japan

  • Canada

• The 8th state is Russia which joined in 1998-2014; this is why the group is sometimes referred to as G8

Evaluation of the G7/G8

The G20

• This intergovernmental organisation was established in 1999 following the global financial crisis of 2008

• Its aim is to bring together leaders and finance ministers from both economically-developed and emerging economies to strengthen economic policies and reform financial institutions 

• The President of the World Bank and Managing Director of the the IMF also attend these meetings

Evaluation of the G20