The Impact of International Organizations on battling Poverty

The disparity that exists between developed and developing countries, is a result of the capitalist society and globalization today. International mechanisms have been installed over time, to create regulations and guidelines pertaining to productivity and progress of the international community. As a result of the direct focus on globalization and expansion, the repercussions can be overlooked, as they might not always appear to be pressing issues. What is apparent, however, is that as time progresses, these ‘un-pressed’ issues, can and have developed into the extreme disparities that are the continuation of poverty—and in turn, bring up the issue of human rights violations.

The concept that needs to be integrated is the idea of getting transnational corporations to take part in human development, in relation to human rights. As stated by Olivier de Shutter, “Transnational Corporations (TNC’s)—corporations having business operations in countries other than their country of incorporation, either directly or through subsidiaries and affiliates—have the potential to be important actors in development, not only in that they may contribute to the expansion of exchanges and therefore economic growth, but also in that they may help fulfill a form of development oriented towards the expansion of human capabilities, of which human rights are both a main ingredient and a precondition.” If this concept is able to be integrated into regulations of international corporations, it would be beneficial for all those involved. As poverty has a direct correlation with finances, this is one solution that would seem apparent. The other aspect, however, is finding the solution as to how to directly apply these finances to human development. Through prior literature observed in this course, there have been suggestions that these TNC’s should be applied, but how? Uvin states, “As globalization, economic integration, and global corporate mobility proceed at a fast pace, and as corporations are granted increasingly strong international legal protection for their rights to trade, invest, and produce freely, should they not be subject to duties as well?” (Uvin, 15)

One great stride made by the World Trade Organization, has set an example that has attempted to set the precedent for these standards aiding financial development of human development. The numbers and regulations associated with wages are just some of the many decisions made by the World Trade Organization, which affect the levels of poverty in countries all around the world. “Establishing the World Trade Organization (WTO) with avowed objectives including higher standards of living, steady growth of real income, full employment, and economic growth patterns compatible with sustainable development. The preamble also proclaims that even the least developed countries will share the benefits of global production and trade in goods.” United Nations Economic and Social Council Statement on November 26, 1999. The resolution developed on November 26, was the first step “to ensure that human rights principles and obligations are fully integrated in future negotiations in the World Trade Organization”.

As was mentioned in the United Nation’s Global Impact Principles, there are expectations of values that are to be upheld in the areas of human rights, labor standards, the environment, and anti-corruption. While it may be the belief that little action is taken to enforce these principles, it directly addresses the relationship between companies and their influence upon matters pertaining to human rights. The action taken by the World Trade Organization is one example of the acknowledgement and development that will hopefully continue in the future.

On September 19, 2007 at a conference in Manila, Philippines, “Top global and regional financial officials pledged to help small and weak states in Asia and the Pacific build and strengthen capacity to benefit from trade and spur economic growth to alleviate poverty.” This is another prime example of the actions that can and are being taken by international organizations (though directly associated with finance). It is apparent contrary to public belief, though they may be minimal, actions are being taken by these international organizations.

Obviously vast improvements need to be made in order to have a grand enough impact on battling poverty of those developing countries, but it is apparent that efforts are being made. The aspect of human development that needs development, is applying moral and financial obligations to those Transnational Corporations. Forcing the development upon those corporations could affect the integrity of the matter, so the ideal would be to appeal to the beneficial aspect of human development through making the matter relatable to those running Transnational Corporations, who are too, affected by human development in the long run.

Sources:

Foundation for the Global Impact. http://unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html