Effectiveness of Global Governance

Question 1

global governance has been effective: PROMOTES GROWTH AND REDUCES POVERTY

Answer 1

Economic governance focuses on the stability of the global economy

Global economic bodies have a near universal membership and continue to thrive

Economic governance has implemented orthodox development theory which underpinned the growth of western economies and the Asian Tigers like South Korea

As a result the number of people living in absolute poverty continues to fall despite the global crash of 2007 to 8

Question 2

global governance has been effective: REFORMED

Answer 2

The IMF and World Bank have been reformed to take emerging global issues more seriously with the change from saps to PRSPs and the emphasis on sustainable development

Question 3

global governance has been effective: TACKLED GLOBAL CRISES

Answer 3

Economic governance has tackled global crises such as the 1970s recession and the 2007-09 global economic crash

Global recovery after 2009 has been stronger than after the Wall Street crash of 1929 with higher levels of international cooperation and opposition to moves to state protectionist policies such as increasing taxes on imports

Question 4

global governance has not been effective: PROTECTS INTERESTS OF THE WEST

Answer 4

Economic governance protect the interests of the USA the west and TNCs

It is based on the Washington consensus which benefits the north over the south by increasing structural dependency

Orthodox development theory has created wider issues such as climate change and has been ineffective in dealing with emerging global issues like poverty — the system needs further reform

for example, poverty rates may have fallen in East Asia but they remain high in Sub-Saharan Africa

Question 5

global governance has not been effective: CHALLENGED BY ECONOMIC CRISES

Answer 5

The effectiveness of global governance has been challenged by the increasing number of depth of economic crises and its responsibility for the banking and financial regulations at the heart of the 2007 to 8 global financial crash

At the G 20 meeting in 2010 the deal to cut interest rates and introduce a fiscal stimulus to pump money into the economy to drive growth collapsed with the threat of the debt crisis in Europe causing some states to cut spending

The IMF struggled to offer ideas to promote growth and tackle the debt crisis in countries like Greece