Global Economic Governance

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Define global economic governance.
Framework of coordination and management that is facilitated by bodies such as the World Trade Organisation, the International Monetary Fund and the World Bank.
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Who is the debate between?
Liberals and critical theorists.
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What is the function of global economic governance?
The purpose is to provide a stable framework for sustainable growth for all in the world economy.
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"Multilateral approach to counter protectionism and preserve peace"
GATT had success in reducing trade barriers in manufacturing from an average of 47% in 1947 to 3% by 2000. This has continued with the WTO. China in 2001 was required to dismantle over 7000 barriers.
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"Globalisation and economic growth"
IMF Ireland 2010 enabled them to conquer a debt crisis and continue to grow economically. Market friendly policies allowed China to average 10% economic growth for the last thirty years dragging hundreds of millions out of poverty.
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"Financial framework to coordinate world economy"
The G20 used its coordinating power to encourage government spending. This body established the Financial Stability Board in 2009 whose primary function is to “assess vulnerabilities affecting the financial system”.
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"Domination of the West (American Structural Power)"
Within the IMF the USA is the only country with an effective veto. This is because member countries fund the IMF and the USA supplies the most amount of money – in 2010 they supplied $100bn. The leader of the World Bank is always American.
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"Free trade does not benefit the poor"
‘Third World’ debt. World Trade Organisation prevents developing countries from diversifying as this may require tariff protection.
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"Weak framework/structural problems"
Failed to regulate financial markets/banking systems. Reform of the IMF stalled in 2012 due to intergovernmental disagreement. WTO since 2001 Doha Rounds stuck.
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Card 2

Front

Who is the debate between?

Back

Liberals and critical theorists.

Card 3

Front

What is the function of global economic governance?

Back

Preview of the front of card 3

Card 4

Front

"Multilateral approach to counter protectionism and preserve peace"

Back

Preview of the front of card 4

Card 5

Front

"Globalisation and economic growth"

Back

Preview of the front of card 5
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