Supranational Organizations

Beyond the European Union, the trend toward globalization empowered a variety of other supranational organizations that had tremendous reach. National governments still played the leading role in defining and implementing policy, but they increasingly had to take the policies of institutions such as the United Nations and the World Trade Organization into consideration.

The United Nations (UN), established in 1945 after World War II, remains one of the most important players on the world stage. Representatives from all independent countries meet in the UN General Assembly in New York City to try to forge international agreements. While the smaller UN Security Council has broader powers, including the ability to impose sanctions to punish uncooperative states and even to endorse military action, its five permanent members — the United States, Russia, France, Great Britain, and China — each has the power to veto resolutions introduced in that body. The predominance of the United States and western European powers on the Security Council has led some critics to accuse the UN of implementing Western neocolonial policies (see "Changing Class Structures" in Chapter 28). Others argue that UN policies should never take precedent over national needs, and UN resolutions are at times ignored or downplayed.

A trio of nonprofit international financial institutions has also gained power in a globalizing world. Initially founded to help rebuild war-torn Europe, the World Bank and the International Monetary Fund (IMF) now provide loans to the developing world. Their funding comes primarily from donations from the United States and western Europe, and they typically extend loans on the condition that recipient countries adopt neoliberal economic reforms.

The third economic supranational institution, the World Trade Organization (WTO), is one of the most powerful supranational financial institutions. It sets trade and tariff agreements for over 150 member countries, thus helping to manage a large percentage of the world’s import-export policies. Like the IMF and the World Bank, the WTO generally promotes neoliberal policies.

The rise of these supranational institutions, which typically represent the shared interests of national governments, was paralleled by the emergence of a variety of nongovernmental organizations (NGOs). Some NGOs act as lobbyists on specific issues, such as environmental protection or public health; others conduct international programs and activities in their chosen area of focus. Though financed by donations from governments and private citizens, NGOs’ annual budgets can total hundreds of millions of dollars and their work can be quite extensive.