Global Economic Governance

Question 1

Post-War Objectives

Answer 1

Address economic consequences of war.
Ensure economic stability for peace.
Belief: Economic interdependence reduces war likelihood.

Question 2

Post-Decolonization

Answer 2

Address socio-economic disparities (North vs. South).

Stabilize the global economic order.

Question 3

Trade and Development

Answer 3

Interconnectedness and specialization.

Liberalist perspective on trade fostering global cooperation.

Question 4

Bretton Woods Institutions

Answer 4

World Bank (WB)

International Monetary Fund (IMF)

World Trade Organization (WTO/GATT)

UN Conference on Trade and Development (UNCTAD) representing the Global South.

Question 5

Current Trends/Post-Financial Crisis:

Answer 5

Informal Governance:
G7 (G8), G20 since the 1970s.

Changing Role of the US:
Examination of US economic hegemony.
Role in organizations and influence.

Emerging Powers (BRICS, China):
Regional development banks.
Push for inclusion in economic policies.

Question 6

Bretton Woods Conference 1944:

Answer 6

44 participating states.
Objectives: Reconstruct Europe, prevent economic crisis.
Economic Liberalism foundation.
Institutions: World Bank & IMF.

Question 7

The World Bank

Answer 7

Established as IBRD.
Objectives: Poverty reduction, economic development.
Shifted focus from Europe to Global South.
189 member states, consisting of the World Bank Group.

Question 8

IBRD

Answer 8

Credits for public sector economic activities.

Focus on mid-income, credit-worthy low-income countries.

Conditions for credit include good governance, economic reforms.

Question 9

Areas of Investment of IBRD

Answer 9

Agriculture, infrastructure, education, healthcare, public sector reforms.

Provides economic data, research, and advice to governments.

Question 10

World Bank and COVID

Answer 10

Focus on financing vaccination, with significant commitments for Africa.

Question 11

World Bank Structure (IBRD/IDA)

Answer 11

Board of Governors (189).
Board of Directors (25).
Independent evaluation group and inspection panel.
President and staff (~10,000).

Question 12

International Monetary Fund (IMF)

Answer 12

Objectives: International financial cooperation, monetary stability.
189 member states.

Question 13

IMF Functions

Answer 13

Large scale credits to states in financial insecurity.
Technical assistance, monitoring, general research.

Question 14

IMF and COVID-19

Answer 14

Emergency financing, debt relief, relief trust, new financing arrangements.

Question 15

IMF Structure

Answer 15

Similar to World Bank with a Board of Governors, Executive Board, and Managing Director.

No formal complaint structure.

Question 16

Decision-making in WB and IMF

Answer 16

Connected to financial contributions.

Decisions by consensus or sometimes formal votes.

Voting shares debate, with some countries having de facto veto power.

Question 17

Criticism of WB/IMF

Answer 17

Implementation of neoliberal principles.

Washington Consensus: fiscal discipline, trade liberalization, privatization.

Lack of accountability, organizational culture.

Critique on power dynamics.

Question 18

Regional Development Banks

Answer 18

Origins in dissatisfaction with WB lending.

Examples: Inter-American Development Bank, Asian Development Bank, African Development Bank.

Question 19

Asian Infrastructure Investment Bank (AIIB)

Answer 19

Established in 2015 with 57 states, based in Beijing.
Origin, purpose, and debate on China’s influence.
Realist vs. accountability perspectives.
Safeguards and standards introduced.