IGO's and Neo-colonialism

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  • Created by: Anoush
  • Created on: 26-11-15 09:18
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  • IGO's and Neo-colonialism
    • The International Monetary Fund (IMF)
      • Formed in 1944, USA to stabilise currencies after the great depression of the 1930's and WWII.
        • There are 185 members who decide how to invest the money but voting rights aren't equal.
          • Western developed nations have 54.50% of the votes. The USA, individually, has 17% of the votes.
            • The poorest nations only have 1% of the votes.
      • Develop a fund that could be loaned out to other countries in debt.
        • Partly it was thought that reducing poverty would also reduce the spread of communism.
      • The IMF reflects US and EU interests.
        • It has imposed strict conditions on countries to cut spending on health and education in return for financing their debts.
        • Singapore fall to Japan in 1942, and its occupation until The Allies retook control in 1945, led to huge damage.
          • Fearing communism, the USA(supported by IMF) encouraged rebuilding through loans and investment
            • Singapore's economic recovery was rapid. It became one of the 'Asian Tigers'. GDP grew from $5.9bn in 1970, to $153bn.
    • World Trade Organisation (WTO)
      • Also formed in 1944. Role to be a bank to finance development, respond to natural disasters and humanitarian emergencies.
        • In 1950's, it began financing the development of former colonies.
      • Gained a bad reputation by financing projects that were environmentally damaging or impossible to repay e.g. SAP's in Sub-Saharan Africa.
        • Voting structure is like that of the IMF e.g. US has 16% of the votes
        • EU and USA spend $400bn annually on farm subsides.
      • An organisation for liberalising trade (free trade- no restriction e.g. tariffs, subsides and quotas)
        • WTO has allowed for subsides to be paid to large farms (typically in the EU and USA) of a range of crops.
          • This allows for farms to create huge surpluses of food, which drives down prices.
            • Led to the 'dumping' of food on LEDC's which undermines local production and local farmers.
          • Ghana joined the WTO in 1995, in an attempt to increase its global trade.
            • Until then, the Ghanaian government had subsidised its farmers to encourage them to stay on the land and grow food for Ghana's growing cities.
              • The WTO imposed the joining condition that Ghanaian farmers should no longer be subsidised, although they had done so.
                • Ghanaian farmers in a tomato-growing area in the Upper East District are finding it hard to sell their own products as imported EU tomato's are cheaper.
                  • Tomato canning factories have closed. And rice growers are overwhelmed with cheap, imported rice from the US.
                • In 2007, the EU charged a 15% import tariff on chocolate containing cocoa butter , but no tariff at all on raw cocoa beans.

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