North Atlantic Treaty Organization (NATO)

NATO ● Is the political and administrative center

of the alliance
● Host roughly 6,000 meetings every year
● Initially based on London; was moved to
Paris in 1952; now, transferred, at
Brussels, Belgium in 1967

Headquarters ● Boulevard Leopold III in Brussels,

Belgium

NATO’s Purpose: ● Guarantee the freedom and security of its

members through political and military
means

It has the military power to undertake crisis-management operations – carried out under the
Collective Defense Clause (Art. 5)

Washington Treaty ● NATO’s founding treaty

Principle of Collective Defense Clause ● “An attack against one or several of its
members is considered as an attack
against all”
● Has been invoked once – in response to
9/11 (December 2001).
● Is at the very heart of NATO's founding
treaty
● Remains a unique and enduring principle
that binds its members together

NATO ● An alliance of countries from Europe and

North America – provides a unique link
between these 2 continents.

Key Structure

Member Countries ● Very top of the hierarchy

Nato’s structure encompasses both political and military dimensions, with the North Atlantic Council
and Military Committee serving as the highest authorities in each respective domain

Political Level

North Atlantic Council (NAC) ● Highest authority

● Composed of representatives from each
member state
● Responsible for making key decision
● Provides overall political guidance
● The ultimate authority at the head of the
network committees
 ● The Sec Gen. chairs the NAC
● The only body established by the North
Atlantic Treaty (Art. 9) in 1949
● The only one with the authority to set up
subsidiary bodies

NATO Delegations ● Below the NAC

● Permanent representatives from each
member state
● Serve as the primary channel for
communication

Nuclear Planning Group (NPG) ● Operates within the NATO Delegation

framework
● Has comparable authority to the NAC, but
only for matter within it specific area of
competence

Secretary General ● Appointed by member states

Current Sec. Gen.: Jens Stoltenberg ● Plays a crucial role in coordinating the
work of the alliance, representing it
externally
● Provides leadership at the political level

Military Level

Military Committee ● Highest military authority

● Consists of Chiefs of Defense
○ Responsible for advising NAC on
Military matters
● Military Representatives
○ A link between the Military
Committee and the NATO
Delegations
● Oversees two key commands: Allied
Command Operations and Allied
Command Transformation

Allied Command Operations (ACO) ● Responsible for the operational planning

and execution of NATO’s military
● Operational arm of the alliance

Allied Command Transformation (ACT) ● Focuses on developing and transforming

NATO military capabilities

Key Obligations

Article 5 (Collective Defense Clause) ● An armed attack against one or more of

the NATO member countries in Europe or
North America is considered an attack
against them all
 ● Underscores the commitment of NATO
members
● Implementation:
○ Involves consultations among
member states to determine the
appropriate response, which can
include political, diplomatic and
military measures
● Is at the core of NATO’s purpose
● Serves as a deterrent to potential
aggressors

Enforcement

Possesses the capability to enforce its obligations primarily through its military forces and structures.

NATO Response Force (NRF) ● NATO’s readiness forces

● Play a crucial role in enhancing the
alliance’s ability to response to emerging
crises

Key Clauses/Provisions

North Atlantic Treaty Signed on April 4, 1949

Founding document

Art. 5 ● The primary and most crucial clause

Art. 4 ● Provides for consultation among member

states
● Does not invoke the automatic response
of Art. 5
● Emphasizes the importance of political
consultation and cooperation

Art. 2 ● Encapsulates NATO’s commitment to the

peaceful resolution of international
disputes

Art. 3 ● Emphasizes the commitment of each

member to maintain and develop their
individual and collective capacity to resist
armed attack

Art. 6 ● Establishes that the treaty does not affect

the rights and obligations of the member
states under the UN Charter

These key clauses collectively form the legal framework that governs NATo’s purpose and function

Obligations
Rely on diplomatic, political, and internal mechanism to ensure member states adhere to their
obligations

Art. 4 ● Outlines provisions for diplomatic

consultation among member states in
response to threats against territorial
integrity, political independence, or
security

Member states within NATO may face political ● Strained diplomatic ties
repercussions for perceived non-compliance – ● Reduced influence
consequences include: ● Damage to international reputation

Despite lacking direct enforcement powers, NATO employs regular reporting and peer reviews to
monitor adherence, particularly regarding specific guidelines such as the 2% defense spending target

Compliance

NATO utilizes political and diplomatic efforts to address concerns and ensure alignment with its
objective

Operating on a consensus basis, NATO decisions require unanimous agreement.

Peer Pressure ● Influences compliance, stemming from

the desire to maintain positive
relationships

Collective decision-making ● Central to NATO’s governance

Public statements and official communiques ● Play a role in reinforcing the principles of
the coalition, fostering a shared
understanding

Political, economic, and diplomatic pressures ● Influences compliance within NATO,

reinforcing the alliance’s commitment to
collective security
 World Trade Organization (WTO)

WTO Headquaters ● International organization that regulate

global trade
● Established in 1995
● Succeeded the General Agreement on
Tariffs and Trade (GATT)
● Serves as the principle body for setting
rules governing international trade

Headquarters ● Geneva, Switzerland

Primary Purpose: ● Open trade for the benefit of all

Members ● 164 nations

Mandate ● Overall objective: to help members use

trade as a means to raise living standards,
create jobs and improve people’s lives
● WTO operate the global system of trade
rules
○ Global rules of trade provide
assurance and stability

Key Structure

Ministerial Conference ● Highest decision-making body of the

WTO
● Meets at least once every 2 years

General Council ● Main governing body of the WTO

Current Director General: Dr. Ngozi ● Responsible for overseeing the
Okonjo-Iweala functioning of the organization

Dispute Settlement Body (DSB) ● Responsible for sett;ling disputes

between member countries
● Operates based on the procedures
outlined in the Dispute Settlement
understanding (DSU)

Councils and Committees ● Focuses on specific areas of concern

● Provides forum for member countries to
discuss issues

Secretariat ● Administrative arm of the organization

● Responsible for providing support to
member countries
● Facilitating the work of WTO Bodies

Trade Negotiating Committee ● Responsible for negotiating trade

agreements among member countries
 ● They focus on specific areas related to
their interest.

Appellate Bodies ● Part of the WTO’s dispute settlement

mechanism
● Hears from the panel rulings on trade
disputes
● Ensures that WTO agreements are
implemented and applied correctly

General Obligations

Most-Favored-Nation Treatment ● Members must treat services and service

suppliers of any other Member no less
favorably than those of any other country.

Transparency ● Members must publish relevant measures

affecting the Agreement promptly.
● Inform the Council for Trade in Services
about new laws, regulations, or
administrative guidelines.
● Respond to requests for information
promptly.

Increasing participation of Developing ● Facilitate the participation of developing

Countries countries in world trade through
negotiated specific commitments.

Economic Integration ● Members are not prevented from entering

into agreements liberalizing trade in
services.
● Consideration given to agreements in the
context of economic integration or trade
liberalization.

Domestic Regulation ● Measures affecting trade in services must

be administered reasonably, objectively,
and impartially.
● Establish review procedures for
administrative decisions affecting trade
in services.

Recognition ● Members may recognize education,

experience, or licenses from other
countries.
● Recognition must not discriminate or
restrict trade in services.

Monopolies and Exclusive Service Suppliers ● Monopoly suppliers must adhere to

obligations.
● Notification required for granting
monopoly rights.
Business Practices ● Recognition of certain business practices
restraining competition.
● Consultations to eliminate such practices.

Emergency Safeguard Measures ● Multilateral negotiations on emergency

safeguard measures.

Payments and Transfers ● No restrictions on international transfers

and payments for current transactions.

Restrictions to Safeguard the Balance of ● Members may adopt restrictions in case

Payments of serious balance-of-payments
difficulties.
● Restrictions should not protect a specific
service sector.

Government Procurement ● Multilateral negotiations on government

procurement in services.

General Exceptions ● Measures allowed for public morals,

public order, health, compliance with
laws, and taxation.

Security Exceptions ● No requirement to disclose information

contrary to essential security interests.
Members can take action for the
protection of essential security interests.

Subsidies ● Recognition of the potential distortive

effects of subsidies on trade in services.
Negotiations on multilateral disciplines
to address trade-distortive effects.

Compliance

To become a WTO member, a state or customs territory with full autonomy in trade policies can accede
by agreeing on terms with existing members. This involves establishing a working party and engaging
in negotiations, leading to adopting an accession package.

Dispute Settlement Mechanism ● A crucial component of the WTO’s

enforcement mechanism
● Crucial for maintaining a level playing
field for all member countries
● Helps builds trust among member
countries

1986-94 Uruguay Round negotiations ● Significantly shaped the current set of

rules, introducing new provisions for
trade in services, intellectual property,
and dispute settlement

Trade Policy Review System Mechanism ● Enhances transparency by evaluating the

 impact of trade policies and providing
constructive feedback

Periodic scrutiny and global trade monitoring initiated after the 2008 financial crisis have become
integral to assessing WTO members' implementation of trade measures. These measures ensure that
all member countries are held accountable for their trade policies and that potential issues or
violations can be addressed.

WTO also provides technical assistance and capacity-building programs to help developing
economies fully participate in global trade and benefit from its opportunities

Enforcement

The World Trade Organization (WTO) has enforcement powers primarily through its dispute
settlement mechanism.

WTO dispute settlement is a rules-based, binding process that allows members to hold each other
accountable for their commitments under the WTO agreements.

Reverse Consensus ● means that a panel or Appellate Body

report is automatically adopted unless
there is consensus among WTO members
to reject it
● ensures that decisions are made in a fair
and impartial manner

Trade Sanctions ● A means of enforcing rulings

● Includes:
○ Suspend concessions or other
obligations to the losing country
● Is considered a last resort
● Intended to be temporary

WTO dispute settlement mechanism is designed to be a member-driven, consensus-based

organization, where decisions are made by the members themselves under agreed procedures that
they negotiated, including the possibility of trade sanctions
 International Monetary Fund (IMF)

IMF ● Founded in 1994 during the economic

downturn of the 1930s known as the
Great depression
● Established by a coalition of 44 member
nations
● Was merely a set of rules regulating
member state behavior rather than an
organization with any autonomy
● Is subject to the authority and oversight
of its member nations

Primary Objective ● To attain long term economic expansion

and well-being

Three Primary Objectives 1. Promoting international monetary

cooperation
2. Fostering trade and economic growth
3. Rejecting actions that could undermine
prosperity

Purpose (3 distinct methods) 1. Initially, it monitors the worldwide

economy as well as the economies of its
constituent nations
2. Furthermore, it offers tangible support to
its members
3. Finally, provides financial assistance to
nations maintaining equilibrium in their
balance of payments

Headquarters ● Washington, D.C., United States of

America

Member States ● 190 Countries

Mandate ● Promotes macroeconomic and financial

stability
● Provides policy advice and capacity
development support
● Provides short and medium term loans
● Staffs are primarily economists

Key Structure

Board of Governors ● Each member is represented by a

governor (finance minister or central
bank governor)

Executive Board ● Responsible for the day-to-day

operations of the IMF
 ● Composed of 24 Executive Directors

Managing Director ● Head of the IMF

Current Managing Director: Kristalina Georgieva ● Appointed by the Board of Governors

General Obligations

The primary roles of the IMF include overseeing the global monetary system and supervising the
economic and financial policies of its member countries. Additionally, the IMF provides financial
assistance to countries facing economic challenges and offers technical support and financial services.

Quota Subscription ● Is agreed upon evaluating the country’s

wealth, individual and international
economic performance, overall economic
status of the state
● Must be met to retain membership

Compliance

Each government that joins the IMF makes a commitment to work with the other members to resolve
global monetary issues.

Members are not allowed to impose restrictions on the exchange of local currency for foreign currency.

It operates as a system of peer pressure and persuasion (referred to as “surveillance”)

The Fund ● An accumulation of financial resources

provided by its members
● Maybe used to provide temporary
balance of payments financing to
members on a conditional basis

In order to correct economic imbalances, the IMF frequently mandates that member nations undertake
particular reforms and policy changes.

Nations consent to implement particular policy measures in return for financial assistance.

Enforcement

The IMF's role is primarily consultative and supportive, emphasizing policy coordination and
collaboration rather than punitive measures. The effectiveness of enforcement is dependent on the
cooperation of member states.

Article IV Consultations ● The monitors member state compliance

through regular assessments through
this article.

In cases of non-compliance: IMF can express concerns, offer policy advice, and, or extremely suspend a
country’s voting rights on global socio-economic concerns

The IMF does not have its own enforcement mechanism against non-compliance but can suspend
voting rights if a member consistently fails to fulfill its obligations.
 Key Clauses and Stipulations

Articles of the Agreement of the International ● Singed and entered into force on 22nd of
Monetary Fund july 1944
● Fundamental basis for the organization’s
existence

Art. 1 Sec. 2 ● “To promote global trade, foster

balanced growth, support employment,
increase real income, and develop
productive resources as key economic
policy goals”

Art. 1 Sec. 5 ● “To instill member confidence, the Fund

offers temporary access to its general
resources with appropriate safeguards,
allowing nations to address balance of
payments issues without resorting to
detrimental measures.”
World Bank