EQ2 Flashcards
the imf
bretton woods instituion
- conceived in 1944,+founded in 1945. it aims to help stablise global currencies + provide loans to developing countries to reduce poverty
- in return for a loan, country must enforce SAP
- sap ensures capitalism is promoted w/in country+it can require country to impose cuts to public services + privatise state industries
- -many countries (main in africa) see imf as last resort lender
- many argue saps + loans from imf result in worse poverty as can become trapped in cyle of debt
saps/ Structural Adjustment Programs
-IMF is a global IGO,** 8 countries** control 47% of the total votes between them + these r the global superpowers.
-via their control of the IMF, the superpowers have significant influence over the global economic system.
-Recently, there have been reports of countries being loaned money from China to meet the conditions needed for further loans from the IMF.
-This =eg of China’s growing influence as a superpower and an alternative to the IMF.
world bank
bretton woods instituion
-founded in 1944.
-Similarly to the IMF, it aims to support capitalism.
-It provides loans to developing countries + provides finance following natural disasters + humanitarian emergencies.
-also wants to achieve sustainability.
-2 goals for world to achieve by 2030:
1. end extreme poverty by decrease % of ppl living on less then $1.90 a day to no more then 3%
2. To promote shared prosperity by ensuring that the income of the bottom 40% in every country increases.
wto
-aims to ensure free global trade + oppurtunities equal for all countries
-wants capitalism to thrive + so trade=free= market act independently of gov
-2016- had 164 members. over 3/4 of its members r developing/least developed countries
-n korea ‘switched off ‘ country=not in it
-but, its failed to stop developed nations from protecting its own industries
-Donald Trump’s implementation of tariffs is more of a threat to it
WEF (world economic forum)
-founded in 1971
-Swiss not-for-profit organisation which promotes public-private co-operation
-it meets yearly in davos where theres thousands of politicans, delegates, economists etc
-costs $19,000 to attend= attendence for small businesses/under represented countries=limited
-also discusses issues like corruption and terrorism.
the role of tncs
-can be publicly traded tncs whose shares r owned by numerous stakeholders (usually other tncs, banks +large finicial institutions such as pension funds) around the world
-or state owned tncs that r majorilty owned by gov.-many r large but not well known as their brands r not global
tncs benefits
-main benefiaciries of the post 1990 us dominance of global economic system + free trade capitalism economy
-driven to max profit by their shareholders who benefit from the profit
-managers of tncs get large saleries+bonuses but shreholders instiution (banks, other tncs, pension funds) recieve even more
criticisms of tncs
-they pursue shareholder profit above all else
-theres been a dramatic shift in orgin of worlds largest companies since 2005, reflecting the rise of emerging powers
USA as global police
-usa has intervened military in foreign countries many times over last 40yrs.
-done this via: being member of UN security council, together w/allied countries as a coalitation but outside a UN remit, unalitarerly w no support from other countries
-since 1980, the uk + france have been invloved but v rarely china or russia. this reflects trend that usa/european countries tend to have similar geopolitical concerns + goals that arent shred by russia/china.
innovation + patents
-tncs + govs invest its into research + dev to develop new products
-in last 20 yrs china has begun to develop many more patents
-in 2012, chinese innovators applied for 652,000 new patents vs only 542000 in usa
-but there r question marks over chinese patent applications in terms of both quality + extent to which they can generate royalty revenue in future for chinese companies
innovation + patents
intellectual property
-IP laws can protect new dev in form of:
1. patents, for new inventions, technologies+ systems
2. copyright for artistic works such as music, books + artworks
3. trademarks to protect design such as logos
4. any person wanting to use a company has to pay a royalty fee to inventor or designer. globally over 85% of all royalty payments go to usa, eu + japan
innovation + patents
global royalities
-the domination of them reflects fact that:
1. existing superpowers + developed countries r paid for inventions + artistic worls they created decades ago
2. developed world tncs r best position to invest in R+D so patent holders tend to be new patent developers
3. educations levels r higher in already developed countries, as r skill levels
4. westernisation + cultural globalisation tend to spread us + eu music, film + tv (copyright) n brands (trademarks)
super powers+enviroment
-sp have large resource footprints
-china= 49% global coal consumption but has 19% of global pop. coal fueled chinas industrialisation since 1990 so has fuelled its status.
-enviromental issues:
1.urban air quality =low in NIC cities due to coalburning power stations. has major health implications, air quality in beijing, shanghai, delhi ad mumbai regularly exceed WHO safe limits
2. demand for FF, mineral + food imports + manufacturing gds exports account for most of worlds co2 emissions from shipping
3. deforestation + land degradation r issues in some emerging powers as seek to convert more land to farmland, continue to urbanise ^ demand/water + ^ use of chemicals in farming to ^ yeilds
whats china doing to aid enviroment?
-sign paris agreement. targets:
-peak co2 emissions by 2030,
-^ share of non fossil energy in total primary energy supply to around 20% by 2030
-lower carbon intensity of gdp by 60 to 65% below 2005 levels by 2030
whats usa doing to aid enviroment?
-target reduce emissions by 26-28% below 2005 levels by 2025, including land use/change + forestry (LULUCF)
