IGOs

What do IGOs do?

They promote free trade policies and FDI

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What was established after WW2?

the 'Bretton Woods institutions' were established after WW2 to destabilise the world economy and prevent returning to the conditions of the 1930s Great Depression

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What happened in 2008-09?

The GFC (global financial crisis) undermined the entire world economy and began in US and EU markets

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What happened in 2010?

China lent US$110 bn to developing countries which is more than the World Bank

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What happened in 2014?

BRICs announced the NDB (New Development Bank) as another alternative

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What is the WTO's main purpose?

To ensure stability of international monetary systems, increase living standards and alleviate poverty

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2 positives of the WTO

Helps to facilitate trade blocs/overseas trade agreements and resolves disputes & fines countries if rules are broken

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Another positive of WTO with example

Asks countries to abandon protectionist attitudes in favour of free trade, e.g. asked China to lift export restrictions on 'rare earth minerals' in 2014

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2 negatives of the WTO

Some believe that the WTO are anti-globalisation and help capitalists to get bigger & failed to stop rich countries from subsidising their own food produce. This protectionism is harmful to farmers in developing countries who also want to trade

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What is the IMF?

A financial based entity created after WW2 which lends money to countries who apply for help but in return, they must run free market economies and be open to investment so TNCs can enter more easily.

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How many members does the IMF have?

189 nations

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Positives of the IMF?

Lend money to governments of sovereign states to stabilise their economy and currency, e.g. in 1982 the IMF lent US$3.8 bn to Mexico during their debt crisis

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Negatives (split into 3 cards) of IMF?

They are an international profit bank with interest and the G7&G8 states have the most voice as they are the ones who put the most money in. They also had to borrow money from China in return for more voting power

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Another negative of the IMF?

They are maligned as they use austerity measures. For example, if a country cannot pay back the IMF, the IMF go into that country and cut gov. spending such as privatising their oil or cutting spending on healthcare or education, for example

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IMF negative + example?

They lend money to corrupt leaders. For example, they lent US$12 bn to the Congo during Mobutu Sese Seko's leadership (1965-1997) who were then unable to pay it back. As a result, the IMF used austerity measures even though the money was never seen

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What is the World Bank's main goal?

With its 162 nations (members), their main goal is to eradicate poverty

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Positive of the World Bank?

They lend money for specific reasons such as vaccination programmers or to build schools. E.g., they lent US$470m to Philippines in 2014 for a poverty-reduction programme as well as helping D. Rep. Congo to start a stalled mega-dam project.

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What have the World Bank eradicated?

They eradicated river blindness in Niger and polio in several other countries

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Negative of the World Bank?

They also use austerity measures and is a key player in climate change mitigation and adaptation efforts which contrasts with its carbon-intensive lending scheme and providing financial support for heavily polluting industries, e.g. coal power

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Other cards in this set

Card 2

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Card 3

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Card 4

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Card 5

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Other cards in this set

Card 2

Front

Back

Card 3

Front

Back

Card 4

Front

Back

Card 5

Front

Back

Comments

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Similar Geography resources: