SEE: Globalisation: 3.2A
- Created by: MaggieNaylor
- Created on: 08-03-22 17:44
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- 3.2A: International political and economic organisations
- These organisations contribute through the promotion of free trade policies and FDI
- They are the 'Bretton Woods institutes'
- WTO, 1995
- Creates a level playing field for trade and encourages economic liberalisation
- Asks countries to abandon protectionist attitudes
- Encourages removal of tariffs and quotas
- 164 members
- Case study: Pakistan
- Joined WTO in 1995, was told to remove its 200 mile exclusion zone around its coast for fishing
- Meant TNCs exploited the waters and local fishing communities were left in poverty
- Case study: Ghana's cocoa trade
- Previously the Ghanian gov had subsidised Ghanian farmers to encourage food production
- WTO's conditions meant they couldn't do this, even though the US and UK do
- So, Ghanian farmers cannot compete with US/UK food
- Case study: Vietnam
- WTO can help forge new trade links
- August 2015 trade deal between EU and Vietnam
- Caused a boom of exports from Vietnam
- Creates a level playing field for trade and encourages economic liberalisation
- IMF- lends money for development purposes + maintains international financial stability
- In return for loans, it forces countries to privatise government assets
- Rules imposed often mean gov has to cut back on spending in other areas of investment e.g. education
- Also stabilises currencies e.g. involvement in Greek debt crisis from 2008
- Greece was forced to impose austerity, leading to many protests
- In return for loans, it forces countries to privatise government assets
- World Bank- lends money from developed to developing countries
- Receiving countries must agree to strict conditions on is loans and grants
- In 2014 it distributed $65 million in loans/grants
- + has had some success projects e.g. Hong Kong
- It has competition e.g. China Development Bank exceeded the amount it loaned in 2010
- Receiving countries must agree to strict conditions on is loans and grants
- These organisations contribute through the promotion of free trade policies and FDI
- Evaluation of WTO
- + Has had some successes e.g. forging new trade links
- - Difficult to get all 164 members to agree
- - Failed to stop richest countries from enforcing protectionism, which is harmful for developing countries
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