1. Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's
major industrial states in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary
order intended to govern monetary relations among independent nation-states.
Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations
gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and
Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July
Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton
Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD),
which today is part of the World Bank Group. These organizations became operational in 1945 after a sufficient number of countries
had ratified the agreement.
The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the
exchange rate by tying its currency to the U.S. dollar and the ability of the IMF to bridge temporary imbalances of payments.
On August 15, 1971, the United States unilaterally terminated convertibility of the dollar to gold. As a result, "[t]he Bretton Woods
system officially ended and the dollar became fully 'fiat currency,' backed by nothing but the promise of the federal government."
This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used
by many states. At the same time, many fixed currencies (such as GBP, for example), also became free floating.
2. Emerging Economy
Used to describe a nation in the process of rapid industrial growth, like such as China, India and Brazil.
3. European Parliament
The European Parliament (abbreviated as Europarl or the EP) is the directly elected parliamentary institution of the European Union
(EU). Together with the Council of the European Union (the Council) and the Commission, it exercises the legislative function of the
EU and it has been described as one of the most powerful legislatures in the world. The Parliament is currently composed of 754
Members of the European Parliament, who serve the second largest democratic electorate in the world (after India) and the largest
trans-national democratic electorate in the world (375 million eligible voters in 2009).
It has been directly elected every five years by universal suffrage since 1979. Although the European Parliament has legislative
power that such bodies as those above do not possess, it does not formally possess legislative initiative, as most state parliaments
within the Union do. Parliament is the "first institution" of the EU (mentioned first in the treaties, having ceremonial
precedence over all authority at European level), and shares equal legislative and budgetary powers with the Council (except a
few areas where the special legislative procedures apply). It likewise has equal control over the EU budget. Finally, the European
Commission, the executive body of the EU, is accountable to Parliament: in particular Parliament elects the President of the
Commission, and approves (or not) the appointment of the Commission as a whole. It can subsequently force the Commission as a
body to resign by adopting a motion of censure.
The President of the European Parliament (Parliament's speaker) is currently Martin Schulz (S&D), elected in January 2012. He
presides over a multi-party chamber, the two largest groups being the Group of the European People's Party (EPP) and the
Progressive Alliance of Socialists and Democrats (S&D). The last Union-wide elections were the 2009 Parliamentary Elections.
Parliament has two meeting places, namely the Louise Weiss building in Strasbourg, France, which serves for twelve four-day
plenary sessions per year and is the official seat, and the Espace Lopold (Dutch: Leopoldruimte) complex in Brussels, Belgium, the
larger of the two, which serves for committee meetings, political groups and complementary plenary sessions. The Secretariat of the
European Parliament, the Parliament's administrative body, is based in Luxembourg. 4. European Union
The European Union (EU) i/jrpinjunjn/ is an economic and political union or confederation*10+*11+ of 27 member states
which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community (ECSC) and the
European Economic Community (EEC), formed by six countries in 1958. In the intervening years the EU has grown in size by the
accession of new member states, and in power by the addition of policy areas to its remit. The Maastricht Treaty established the
European Union under its current name in 1993. The latest amendment to the constitutional basis of the EU, the Treaty of
Lisbon, came into force in 2009.
The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the
member states. Important institutions of the EU include the European Commission, the Council of the European Union,
the European Council, the Court of Justice of the European Union, and the European Central Bank. The European Parliament is
elected every five years by EU citizens.
The EU has developed a single market through a standardised system of laws which apply in all member states. Within the
Schengen Area (which includes EU and non-EU states) passport controls have been abolished. EU policies aim to ensure the free
movement of people, goods, services, and capital, enact legislation in justice and home affairs, and maintain common policies on
trade, agriculture, fisheries and regional development. A monetary union, the eurozone, was established in 1999 and, as
of January 2012, is composed of 17 member states. Through the Common Foreign and Security Policy the EU has developed a
limited role in external relations and defence. Permanent diplomatic missions have been established around the world and the EU is
represented at the United Nations, the WTO, the G8 and the G-20.
With a combined population of over 500 million inhabitants, or 7.3% of the world population, the EU generated a nominal
GDP of 16,242 billion US dollars in 2010, which represents an estimated 20% of global GDP when measured in terms of purchasing
The Food and Agriculture Organization of the United Nations (FAO) (Italian: Organizzazione delle Nazioni Unite per l'Alimentazione e
l'Agricoltura) is a specialised agency of the United Nations that leads international efforts to defeat hunger. Serving both developed
and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and debate policy.
FAO is also a source of knowledge and information, and helps developing countries and countries in transition modernize and
improve agriculture, forestry and fisheries practices, ensuring good nutrition and food security for all. Its Latin motto, fiat panis,
translates into English as "let there be bread". As of 8 August 2008, FAO has 191 members states along with the European Union,
Faroe Islands and Tokelau which are associate members. It is also a member of the United Nations Development Group.
The General Agreement on Tariffs and Trade (typically abbreviated GATT) was negotiated during the UN Conference on Trade and
Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO).
GATT was signed in 1946 and lasted until 1993, when it was replaced by the World Trade Organization in 1995. The original GATT
text (GATT 1946) is still in effect under the WTO framework, subject to the modifications of GATT 1994.
7. Global Governance
Global governance or world governance is the political interaction of transnational actors aimed at solving problems that affect more
than one state or region when there is no power of enforcing compliance. The modern question of world governance exists in the
context of globalization. In response to the acceleration of interdependence on a worldwide scale, both between human societies
and between humankind and the biosphere, world governance designates regulations intended for the global scale.
8. Gross National Product Gross National Product (GNP) is the market value of all products and services produced in one year by labour and property supplied
by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of
production, GNP allocates production based on ownership.
GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing
speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic
For the hyperglobalizers, globalization denes a new epoch of human history in which traditional nation-states have become
unnatural, even impossible business units in a global economy (Ohmae, 1995, p. 5; cf. Wriston, 1992; Guhenno, 1995). Such a view
of globalization generally privileges an economic logic and, in its neoliberal variant, celebrates the emergence of a single global
market and the principle of global competition as the harbingers of human progress. Hyperglobalizers argue that economic
globalization is bringing about a denationalization of economies through the establishment of transnational networks of