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Paper 3 Global · 2019 · 12 marks
Examine the criticisms that have been made of the World Trade Organisation and the G7/8.
Global Governance / Economics
Mark scheme: agreement
The WTO is a powerful intergovernmental organisation created to regulate trade and replacing the General Agreement on Tariffs and Trade with a focus on free trade Some consider that the WTO is too powerful and can compel sovereign states to change laws and regulations by declaring them to be in violation of the rules of the WTO The WTO is dominated by the US and the EU as part of the so called Quad which also includes Japan and Canada The Quad appears to be able to set the agenda of the organisation at the expense of issues, such as agricultural protection, which developing countries would rather focus on The WTO and G7/8 are accused of having a focus on economic growth rather than other important issues A focus on economic activity and economic growth means that the WTO and G7/8 seem indifferent to other issues such as the environment, child labour, and workers’ rights G7/8 is a bloc of industrialised states made up of the US, Canada, UK, France, Germany, Italy and Russia The organisation seems less relevant as other economic powers such as India and China have emerged and G7 percentage of global GDP has fallen from 70% in the 1980s to less than 50% G7/8 now faces competition from the G20 organisation G20 is more diverse than G7/8 with a wider membership representing two-thirds of the world’s population, including members such as China, the EU, South Africa and Saudi Arabia
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