Agencies of developent Flashcards
Agencies of development
Organisations and institutions that play a part i n development.
States
Includes governments, legal systems, police, military and civil services.
TNCs
Refers to corporations that have globalised operations. Eg. They sell around the world and have global supply chains.
NGOs
These aren’t directly connected to governments nor exists to make a profit, like businesses. Basically they’re large charity/ humanitarian groups.
IGOs
States can’t solve problems alone’ IGOs are supranational organisations, made up of a number of states that cooperate.
Why are TNCs able to act in unethical ways?
- Global influence (The largest TNCs are more powerful than some developing countries)
- Parent-subsidiary relationship (In court the subsidiary is prosecuted leaving the TNC protected both financially and in terms of publicity)
- Regional economic influence (Can force governments into overlooking what they do)
- Whose legal system? (They may break the law in their country but not in the developing country)
- How and whom to punish? (Fines are tiny as a proportion of profits and costs can be passed on to consumers)
Strengths of states
- Marxists and dependency theorists are opposed to capitalism and favours development being state led.
- Development states include Japan and the asian tigers showing states can have a positive impact.
Weaknesses of states
- Neoliberals dislike state intervention (TNCs should do the developing)
- China’s ‘great leap forward’, an attempt at internal state led development, cased the largest famine in history.
- Some countries aren’t able to develop through states. Eg. Africa loses $50billion each year through corruption.
TNCs strengths
- Bring investment in terms or money, tech and expertise and create jobs which local companies are unable to do.
- Need trained workers which should raise the aspirations of local people and encourages improvements of education.
- Bring modern values which may help development like gender equality.
- Need and will pay for infrastructure such as roads and power lines which locals can benefit from
- Encourages international trade and opens up new markets.
TNCs weaknesses
- Exploitation of workers.
- Exploration of the environment
- Exploration of markets
- The higher position jobs created may go to the expertise rather than the local people.
- Profits are unlikely to stay in the developing country
- Products are exported to western markets
- Biopiracy
NGOs strengths
- Smaller and more efficient than large scale bureaucracies
- Continuity
- Not driven by profit unlike TNCs
- Able and willing to take risks
- Able to undertake small scale projects working as partnered with local people.
- Responsive to donors with whom they rely for funding.
NGOs weaknesses
- Unclear accountability
- Working too closely with governments
- Inappropriate spending of funds
- Having links with TNCs
- Some portrays people in developing countries as helpless victims.
- Being too concerned with good publicity and building a successful brand
IGOs strengths
- Total aid spent by Eu bilaterally and through Institutions multilaterally is over $50 billion. (EU is the world’s largest donor)
- World bank provides the poorest countries with international development association (IDA ) loans at zero interest.
- World bank offers developing countries loans at much lower interest rates they can get commercially.
- World bank recently focused much more on poverty eradication and the setting of MDGs strengthened this.
IGOs weaknesses- IMF
- Adhering strictly to neoliberal policies despite lack of evidence of their effectiveness.
- Unconcerned with human effects of SAPs.
- Imposes same conditions of all regardless of how far the country has developed. (one size fits all)
- Deals mainly with short term economic problems rather than long term development.
- Failed to foresee economic crises.
Biopiracy
TNCs are able to patent traditional medicines and sources of food, making money from resources that ought to belong to developing countries and also eliminating domestic firms that sold these products.
