Game Theory
In Economics the study of Game Theory examines situations where several participants in mutual dependence encounter decisions. Generally the rational Homo-Economicus is consulted as a model. A famous example of the Game Theory is the so-called Prisoner’s Dilemma.
Global Deal
A so-called Global Deal, a contract between the South and North, was proposed by the EU, Switzerland and Norway in preparation of the World Summit on Sustainable Development (Johannesburg 2002) at Denmark’s request. However, because of pressure by the United States it could not be set on the daily agenda. The Global Deal, amongst other purposes, would have cancelled third world debt and contained the negative ecological consequences of the economic growth.
Global Economic Miracle
A central concept of the Global Marshall Plan Initiative is to transpose the positive experience of the economic boom in Europe after the Second World War (see Economic Miracle) to the entire world. Following the same principle, in which war-torn Europe and especially Germany was restored to great economic prosperity, a similar boom in the current developing countries should be initiated. From which, eventually the whole world can profit, such as the USA had profited from the historic economic miracle (see Marshall Plan).
Global Environmental Agency
United Nation Researchers called for the establishment of a Global Environmental Agency (GEA) in a 2002 public report. It would coordinate and implement the 500+ previously decided international environmental protection agreements. Next to Brazil, Germany, Singapore and South Africa, Jacques Chirac and Lionel Jospin, as well as Renato Ruggiero, General Director of the WTO have spoken for such an organization that the economist Prof. Esty (Yale) would like to call the Global Environmental Organization (GEO).
Global Governance
The concept of “Global Governance” has many political and economic interpretations, differing in concept and rationale, which are always targeted at the political structure of globalization – meaning the formation of governance structures that justify changed conditions. Governance structures are understood as a complex system of reciprocal leadership and responsibilities; for instance, treaties and organizations, as well as informal standards and other dependencies. See also governance.
Good Governance
Starting from the governance concept of the World Bank (see governance), the Development Aid Committee of the OECD (DAC) in 1995 continued to refine an orientation framework for the DAC membership for the advancement of “good governance” in their partner countries. Since then the concept, already variously interpreted because of its normative pretence, can no longer be dismissed from the debate on developing countries and administrations. The definition of good governance according to the German Federal Ministry for Economic Development and Cooperation is “good basic political conditions for social, ecological and economic development, for responsible commerce of states with political power (also safety area) and public resources. This requires a capable open management, i.e. political and administration acknowledgement of the civil services and possible economic participation to provide information and transparency and give an account of their actions vis-à -vis the public (accountability of the inner and outer). A right to governance and a right to safety, also in the sense of equality, must be guaranteed” (source).
Governance
Since the 1990’s governance has attained an increased importance in the theory and practice of economics. Governance can be defined as the collective of the countless ways in which individuals, as well as public and private institutions, control their affairs. This also includes all the formal and informal rules and organisations. In doing so, a new integrative model, whose multi-dimensional interdependence of different entities seen as a self-controlled network, would be underlain instead of the traditional claim of leadership by positions of control or coordination (government, board of directors, etc.)
Gross Domestic Product
The gross domestic product (GDP) of a nation measures the economic performance of this nation by adding together all paid activities (i.e. exports as well as domestically sold products and services). At best, this value is appropriate for horizontal comparisons (between different nations) and vertical comparisons (economic growth) because many data points are incorrect or are not included in the calculation at all. For example, the omission of environmental degradation from the calculation can increase the value of the GDP because degradation is often a result of commercial transactions.
Gross National Product
Earlier called the gross social product, the gross national product (GNP) is only slightly different than the GDP (see above). It does not measure the economic performance of a nation, but rather the performance of its citizens in terms of income and output.
Homo Economicus
In economics it is accepted that man is characterized by selfishness and rationality. He strives toward maximal wealth, prestige and freedom (e.g. open options) and has at his disposal a large wealth of knowledge and intelligence which help him in his ambitions. This simplified model is called “homo economicus”. Often falsely interpreted as a condemnable aberration of the economic world, it is basically not a description of mankind itself, rather an accepted model to a theoretical structure of mankind’s behaviour. Like other economic models, it also is very useful for certain theoretical problems, but not for all.
Homo Economicus Cooperativus: The model of homo economicus can be expanded, in that the deciding actors could meet and abide by an agreement. Many situations, the Prisoner's Dilemma for example, depend on the personal interests of all the actors. Transforming Homo Economicus to Homo Economicus Cooperativus and then transferring this model world to reality signifies that the individual pursuit of personal interests (against each other) is replaced with pursuits of the same interests, e.g. compatible self-interests (with each other) – this is about the scope of a Planetary Contract.
Insightful
(see enlightened selfishness)
Inter-American Development Bank
The Inter-American Development Bank is an international organization that has been supported by North and South America as well as European Nations for over four decades to promote economic and social development and the regional integration of Latin America and Caribbean countries. Credit is allocated above all to public institutions.
Homepage for IADB
Internalizing Costs
Economic procedures of all kinds (production, consumption, transportation, etc) accrue costs that are only partially reflected on the final price. External costs, usually environmental damage, are created individually, but left out and burden the whole of society. Internalizing external costs means that those who create such cost include them in the final price. This can, for example be achieved partially through taxes, but also through appropriate adjustments in the legal system. Only then will individuals see the actual worth of the process and then the market economy pricing system can accentuate their big advantages (by allocation).
International Finance Corporation
This international organization was founded in 1956 as part of the World Bank Group. Their function is to financially support private businesses in developing nations.
International Finance Facility
Gordon Brown, Chancellor of the Exchequer, suggested this mechanism at the end of 2002 in order to fill expected financial holes of worldwide development aid. In the scope of an international Finance Facility (IFF) international bonds could be issued to public donors in a financial market, which would then result in higher financial contributions available to developing nations.
International Labour Organization
The international Labour Organization (ILO) was originally a permanent institution of the League of Nations with the goal to protect world freedoms on the grounds of social equity. The ILO started in 1919 in Versailles and since 1946 it has been a special organization of the United Nations. For their current 177 members, the ILO has finalized 185 treaties and 194 recommendations which meet different areas of worker’s rights (e.g. age limits, maternal leave).
Homepage for ILO
International Monetary Fund
The IMF is an international organization that together with the World Bank is named the Bretton-Woods-Institution. Their main function is to advance international cooperation with regards to monetary policy, stabilizing exchange rates and awarding credit to nations if they have liquidity problems. The IMF has considerable influence on the monetary policy of such states by associating supporting measures with their preset conditions.
Homepage for IMF
