Intergovernmental Organisations (IGOs)
The declining influence of the USA … (and a quiz).
[I have been a geographical pedant this weekend. Firstly, I continue to be irritated by the presence of Israel and now Australia in the extravaganza that is Eurovision. Then yesterday, I took my nearly 6-year-old granddaughter to the Yorkshire Wildlife Park (a wonderful place to see lions, polar bears, an Amur leopard and more) only to see an extensive area (representing Africa) labelled ‘The Savannahs’… aargh! Savannah is a city in the US state of Georgia (or a girl’s name). It is savanna. Then, there is an area with animated dinosaurs labelled the ‘The World of Pangea’ – it’s Pangaea!
Anyway, in the aftermath of the recent inconsequential summit between China and the USA…]
Introduction
Intergovernmental Organisations (IGOs) have played a significant role in the process of globalisation and the interconnectedness of countries around the world. IGOs promote global cooperation and unify standards on issues of mutual concern.
Several IGOs focus on economic issues. For example, the World Trade Organization (WTO) promotes free trade through encouraging the benefits of market liberalisation. The International Monetary Fund (IMF) promotes privatisation whereby countries are encouraged to transfer ownership of public-owned services and property to the private sector to attract Foreign Direct Investment (FDI).
Consequently, IGOs are often stated to be responsible for promoting capitalism, the dominant global economic system. Supporters of capitalism argue that through a global economy run on free trade, all nations will benefit from increased levels of competition, efficiency and innovation.
Maintaining capitalism
The IMF and World Bank were set up following the Second World War to promote global economic growth and stability. The World Bank and IMF both lend money to countries for development purposes. However, there is also a form of this called conditional lending.
For example, the IMF has granted Pakistan considerable loans in the past, including a $6 billion loan in 2019. However, the conditions attached to these loans included the requirement for Pakistan to make national economic reforms, including the privatisation of state-led industries. Consequently, Pakistan has seen several state-led energy providers being transferred to private ownership. Although this may improve energy provision, it has increased prices and driven wealth inequality, via the transfer of assets and profits to global TNCs.
The USA influencing the decisions
Not only can IGOs appear to push a capitalist agenda but also, due to the decision-making structures of these organisations, there is limited scope for less powerful countries to make changes.
The vote share of the IMF and World Bank is in favour of the USA giving them overriding influence on all decisions. The USA maintains a 16.5% vote share, while comparatively wealthy China – with its larger population – only has a vote share of 6.1%. The president of the World Bank is elected by the organisation’s Board of Executive Directors. The US domination of this Board ensures that the organisation is led by someone aligned with their interests. All previous presidents of the World Bank have been from the USA. The most recent president of the Bank has dual American Indian heritage but was appointed following his role as the CEO of Mastercard, a global US multinational.
Facilitating networking and soft power
IGOs provide a forum for discussion and networking. The World Economic Forum (WEF) aims to foster global cooperation and economic growth. The annual meetings in Davos, Switzerland are attended by global elites in politics and business, alongside a smaller number of NGO representatives and academics.
Superpowers’ attendance, involvement and networking at their annual meeting ensures that capitalist ideology and values are promoted. The world’s leaders can ‘pitch’ their thoughts on how this ideology and values should move forward. For example, in 2025, President Trump, via video link to the meeting, promoted his ‘America First Agenda’ by announcing tax reductions for businesses operating in the USA. He has used the forum as an opportunity to criticise the use of ‘red tape’ by the European Union (EU) for trade – promoting less bureaucracy and fewer restrictions to the USA’s trade.
Building strategic alliances
Cooperation through IGOs provides scope for alliances to be established that secure superpowers’ interests. This can be seen via lending from the IMF. Lending policies at the IMF are established via the Executive Board made up of 24 elected countries, which has always included the USA.
In recent years, Ukraine has been in receipt of IMF loans to help stabilise the country’s economy and promote Ukraine’s sovereignty. This simultaneously provides a counterbalance to Russia in the region. The UN security council (SC), the primary mechanism for maintaining global security, has also been involved in IMF loans.
And now, President Trump…
The influence of IGOs to secure the interests of superpowers has existed for decades. However, recently as discussed earlier, President Trump has taken a critical stance against the USA’s involvement in some IGOs, keen to ensure that America’s interests are put first. In January 2025, he announced that the USA would withdraw from the World Health Organisation (WHO). His central argument was that the USA was paying an unfair large share compared to other countries, with little benefit to the USA itself. The USA was the single largest contributor to the WHO by providing approximately 15% of the annual budget. The USA’s withdrawal has had far-reaching consequences for global health inequality.
President Trump has also criticised the WTO for failing to uphold a fair playing field for global trade, suggesting that it was ‘set up to benefit everyone but us’. However, historically, most WTO complaints filed by the USA against other countries have been ruled in the USA’s favour.
BRICS nations’ responses to traditional IGOs
To challenge the status quo, the BRICS nations have responded by developing both their economies and geopolitical power. In 2014, the BRICS nations established their own alternative to the IMF and World Bank called the New Development Bank. In this new IGO, BRICS nations (led by China) now have much greater influence over decisions. This has the potential to increase the collective influence and power of the BRICS nations across the globe and steer other developing and emerging economies away from USA-centric policies and ideas. By offering loans with different conditions and in non-US dollars, fewer countries are likely to be under the influence of the USA.
The current war between Israel/USA v. Iran may well intensify movements away from the influence of the US dollar. Iran has managed to still supply China with oil ‘through the back door’ that is the Caspian Sea and been paid for it in Yuan, not dollars. The recent summit between Presidents Xi and Trump, though it appears to have been cordial, may have reinforced China’s determination to provide an ‘alternative’ source of finance for developing countries. The financial ‘Thucydides Trap’ is developing 1..
Conclusion
Capitalism as the dominant global economic system continues to prevail. IGOs have been established to maintain this system, promoting free trade, private and foreign investment and strategic alliances. In so doing, IGOs can still be seen as maintaining the status quo for the US superpower and its allies, although that power appears to be waning.
--------
1. For an excellent observation on the recent Xi-Trump summit see Nick Bryant’s piece here.
A quiz (Answers follow below)
1. Which international organisation was founded on 26 June 1945 by 51 member states?
2. The United Nations Framework Convention on Climate Change (UNFCCC) was founded in 1992 as part of the UN to fight ‘dangerous human interference in the climate system’. Which city was it founded in?
3. The United Nations is an IGO employing about 125,000 people worldwide. Which UN department employed the most people in 2022?
4. Which UN specialist organisation manages copyright, patents and trademarking at a global level?
5. Which activity sphere do USMCA, ASEAN and CARICOM operate in?
6. Effective since 1961, with 12 original members rising to 58 by 2026, what does the ATS seek to protect?
7. Two global IGOs are based in the Hague, the Netherlands. One founded in 1945 and the other in 2002. What do these two IGOs deal with?
8. Which is the newest member state of the United Nations? It became a member on 14th July 2011.
Answers
1. The United Nations. It was founded in San Francisco although its global HQ is in New York. The UN has 193 member states as of 2026.
2. Rio de Janeiro. The UNFCCC was founded at the UN Earth Summit. The IPCC (Intergovernmental Panel on Climate Change) is part of the UNFCCC.
3. UNICEF. It had over 15,000 employees in 2022. UNICEF provides healthcare, nutrition and social care to children in need.
4. WIPO (World Intellectual Property Organization). It is based in Geneva and sets standards to protect intellectual property.
5. Trade. They are all examples of trade blocs. The Caribbean Community was established in 1973, the Association of Southeast Asian Nations in 1967 and United States, Mexico, Canada Agreement in 2018 (replacing NAFTA, that began in 1994).
6. Antarctica. The Antarctic Treaty System governs territorial claims, scientific activity, fishing and tourism in what is often said to be the world’s last great wilderness.
7. Crime and justice. The International Criminal Court (2002) and International Court of Justice (1945) and both located in The Hague. It is sometimes referred to as the ‘international city of peace and justice’ due to the number of organisations based there that work in the field of justice.
8. South Sudan. It became a member following a referendum in Sudan that year that split the country into Sudan and South Sudan. Perhaps surprisingly Switzerland only became a UN member state in 2002.