Unit 4: Global Institutions and Governance

Table of Contents

1. The United Nations (UN): Origin and Role

The United Nations is the most prominent intergovernmental organization in the world. It was established on October 24, 1945, as a successor to the failed League of Nations, with the primary aim of preventing future world wars.

Primary Objectives

2. The Principal Organs of the UN

The UN operates through six main bodies, each with distinct functions:

3. The Need for UN Reforms

The world of 2026 is very different from 1945. There is growing pressure to reform the UN, especially the Security Council.

Key Areas of Reform

4. Bretton Woods Institutions: IMF and World Bank

Created in 1944 at the Bretton Woods Conference, these two institutions manage the global financial and economic order.

Feature International Monetary Fund (IMF) World Bank
Primary Focus Monetary Stability & Exchange Rates Development & Poverty Reduction
Role Acts as a "Global Central Bank" to help countries in financial crisis. Provides long-term loans for infrastructure, health, and education.
Lending Short-term loans for Balance of Payments problems. Long-term loans for development projects.

Criticisms

Both institutions are often criticized for their "Conditionality"—forcing poor countries to adopt specific economic policies (like privatization) in exchange for loans, often harming the poor.

5. Exam Focus: Tips and FAQs

Exam Tips

  • The P5: Remember the five permanent members of the UNSC: USA, Russia, China, UK, and France. They are the only ones with the Veto.
  • ICJ Location: Note that the ICJ is the only major UN organ not located in New York; it is in The Hague.
  • IMF vs World Bank: Do not confuse them. If the question is about a financial crisis, think IMF. If it's about building a bridge or school, think World Bank.

Frequently Asked Questions

Q: What is the Veto Power?
A: It is the power of a permanent member of the UNSC to stop any resolution from passing, even if all other 14 members agree with it.

Q: Why is the UN considered weak by some?
A: Because it lacks its own army and depends on member states for funding and troops. It also cannot interfere in the "internal affairs" of a sovereign state easily.


End of Unit 4 Notes | Prepared for DSC 354 | Knowlet