Understanding Inflation and the United Nations
Inflation
Definition
Inflation is the general and persistent increase in pricing over time. Various factors contribute to inflation, including increased money circulation leading to higher demand, and rising costs of production factors (raw materials, energy, wages, etc.). A sustained period of low prices is called deflation.
Types of Inflation
- Moderate Inflation: Prices increase slowly. When prices are relatively stable, people are cautious with their money, often placing it in low-yield bank accounts (checking or savings) to preserve its value in the short term. They may be hesitant to commit to long-term contracts, anticipating that the price level will remain relatively stable.
- Galloping Inflation: Prices increase at double or triple-digit rates (e.g., 30%, 120%, 240%) within a year. This signifies major economic shifts.
- Hyperinflation: An abnormal and excessive inflation rate, potentially exceeding 1000% annually. This indicates a severe economic crisis, as money loses its value, purchasing power diminishes, and people rush to spend their money before it becomes worthless.
The United Nations
What is the UN?
The United Nations (UN), founded in 1945 after World War II, facilitates international cooperation in law, peace, security, economic development, and human rights. The current president is Abdassalaw Ali.
Functions of the UN
- Arms Control and Disarmament: Banning nuclear testing and weapons to maintain security.
- Peacekeeping: A military body tasked with maintaining peace in conflict zones.
- Human Rights: Ensuring all individuals have basic human rights.
- Humanitarian Assistance: Providing aid during disasters or conflicts.
- Millennium Development Goals: Addressing poverty and combating diseases like AIDS.
Membership
The UN consists of 192 independent and sovereign states. Vatican City is an independent state but not a UN member. Some members have observer status, allowing them to speak but not vote in meetings.
Voting Systems
- Simple Majority: A majority of members present and voting, used for general matters.
- Two-Thirds Majority: Used for matters of peace, security, and electing Security Council members.
- Two-Thirds Majority Plus Permanent Members’ Approval: Required for certain critical decisions.
Key Organizations
UNHCR, UNICEF, FAO, UNESCO, WHO, World Bank, IMF
Main Actions
Examples include actions in Haiti, Iraq, and on climate change.
UN Security Council
The UN Security Council maintains international peace and security. It comprises 15 countries: five permanent members (U.S., France, UK, China, Russia) and 10 non-permanent members elected for two-year terms as regional representatives. The Council presidency rotates monthly.
History
The first Security Council meeting was held on January 17, 1946, mostly in New York.
Permanent Members
- China
- Russia
- USA
- France
- United Kingdom
The IMF
The International Monetary Fund (IMF), established in 1945, promotes sustainable exchange rate policies, facilitates international trade, and reduces poverty. It’s a specialized UN agency with 185 member states.