EQ1 8A.3 GOVERNMENTS - DEVELOPMENT POLICIES Flashcards
what do Governments and International Government Organisations (IGOs) play a significant role in
defining development targets and policies
In general, countries that are more to the ‘left’ and more democratic tend to invest more in what
in social progress factors e.g. education and health
countries that are more to the ‘right’ and more authoritarian tend to invest less in what
social progress factors
an extremist socialist example
Socialist Cuba, where social development is a high priority.
an extremist authoritarian example
Saudi Arabia, with very low levels of per capita spending on public services
how are governments classified (left to right)
Governments can be classified along a continuum from left wing (socialist) to right wing (capitalist).
how are governments classified
They can also be classified along a continuum from democratic (hold regular elections) to authoritarian and totalitarian (with small powerful elites).
in most countries what does economic development provide
the means (capital and human resources) that drive and sustain human development
what 2 types of development are critical and in the hands of governments
economic and human development
what do governments determine
Governments determine how much of a country’s wealth should be spent on providing education, health and other social services.
what does government spending depend on
This depends very much on governmental attitudes towards social progress
when were the IGOs established
Three IGOs established after the Second World War
what do the IGOs control
the rules of world trade and financial flows.
the 3 main institutions are
The World Trade Organisation (WTO).
The International Monetary Fund (IMF).
The World Bank (WB).
what are the aims of the institutions
The three IGOs have helped to maintain the dominance of ‘western’ capitalism as the dominant paradigm in the globalised economy.
They support free trade and economic development.
The three IGOs have helped to maintain the dominance of ‘western’ capitalism as the dominant paradigm in the globalised economy.
They support free trade and economic development.
what is the aim of the WTO
The WTO aims to reduce the trade barriers between different countries.
what are the global agreements of the WTO
The WTO tries to get all countries internationally to agree to the same terms that help to create free trade.
The latest round of talks began in Doha in 2001, but have not yet been concluded.
what does the WTO say about tariffs
According to the WTO ‘tariffs give a price advantage to local producers’. They are effectively a tax on imports.
The WTO tries to reduce barriers to trade (like tariffs). The WTO tries to persuade nations to reduce their tariffs on a range of goods and services.
what does the IMF do
promotes global economic and financial stability.
what does the world bank do
lends money to fund development
what does the IMF encourage
The IMF encourages developing countries to accept foreign direct investment (FDI) and open up their economies to free trade.
why is the IMF criticised
The IMF is often criticised for promoting a ‘western’ model of economic development that works in the interests of developed nations and TNCs.
why did the Britain use the IMF in 1976
In 1976, Britain had to borrow $3.9bn from the IMF when it faced an inflationary crisis.
why did the Argentina use the IMF in 2018
In 2018, Argentina accepted a $50bn loan from the IMF after their currency, the Argentinian peso, weakened materially.
how has the world bank helped developing countries
The World Bank lends money to the developing world to fund economic development and reduce poverty.
The World Bank has helped developing countries develop connections with the global economy.
why is the world bank criticised
It is sometimes criticised for having policies that prioritise economic development over social development.
what has happened since the 1970s for developing countries
Since the 1970s, tougher rules and strict conditions have been applied for large-scale lending, especially for developing countries. These have included the SAP and HIPC schemes
what does SAP stand for
SAP stands for Structural Adjustment Programmes.
what is a SAP
They are usually made up of loans from the IMF and World Bank.
SAPs have made countries that receive lending follow specific routes to development, such as privatisation.