Global Governance Flashcards
Some cards need answers
World bank
An organisation that promotes investment globally and provides loans for countries under certain conditions. Its main aim is to reduce poverty and is an important source of financial and technical assistance to developing countries.
International Monetary Fund (IMF)
An organisation which standardises global financial relations and aims to promote global monetary and exchange stability by monitoring the global economy. It consists of 188 countries who work to promote financial cooperation between countries to reduce poverty, normally through the promotion of trade and high employment.
World Trade Organisation (WTO)
Formed in 1993, it aims to cut trade barriers that stop other countries trading freely so that goods can flow more easily.
United Nations (UN)
Known as the “Guardian of international peace, security and human rights”. It promotes the development of poorer nations through work with the IMF and World Bank.
Organisation for Economic Cooperation and Development (OECD)
A global think tank for 30 of the world’s wealthiest nations.
Transnational corporation (TNC)
A global company which operates in more than one country. HQs are often in HICs, with factories in LICs/NEEs, where workers are cheaper.
Key facts about the IMF
188 member countries
2,700 employees
$675bn in quotas.
Biggest contributors: Germany, UK, Japan (based on GDP)
Biggest borrowers: Ukraine, Portugal, Pakistan, Greece
Key facts about the World Bank
189 member countries
10,000 employees
Funded by issuing bonds
Lending commitment reached nearly $59bn in 2022-2023.
Biggest borrowers: Countries in Africa, East Asia and the Pacific.
Criticisms of the IMF and World Bank
Critics say the requirements with the loans were unfair (for IMF and WB).
Environmentalists criticise them for the environmental and societal impacts of some of their projects.
Greece’s economic problems
Greece was spending beyond their means. They had a retirement age of 55, with a €1,000 monthly state pension. They approached Germany several times to bail them out, but there was lots of animosity against Greece.
Example of a failed “top down” scheme
Lake Turkana Fish Processing Plant in Kenya.
Lake Turkana Fish Processing Plant in Kenya
Donor: Norwegian government.
Cost: $22 million.
Where it went wrong: It was designed to improve jobs in the area, but the area had no history of fishing, or even fish eating. People in the area just had no skills in this industry. The plant was completed and only opened for a few days until it was shut down.
Example of a successful “bottom-up” scheme
Hydroelectricity in Peru.
Hydroelectricity in Peru
Charity: Practical Action
Bringing electricity into small communities has helped to improve the lives of many residents.
Top-down development
Government led development
Concerned with management of the economy as a whole
Governments make decisions with little participation from local people
Hope that economic development will “trickle-down” to regions and local areas.
Bottom-up development
Grassroots development.
People centred, concentrating on helping people to help themselves.
Encourages the involvement of local people
Benefits people at the local level
NGOs are involved
They give financial aid and technical expertise
Role of the World Trade Organisation
Creating a level playing field of trade through rules.
Resolving disputes between countries.
Can impose sanctions on countries who don’t follow the rules.
Roles of the UN
Maintain world peace and security
Provide long-term humanitarian and development assistance and uphold human rights
Eradicate and prevent global hunger
Protect refugees worldwide
Eradicate and combat the spread of global disease
Develop friendly relations
Settle legal disputes (within international law)
Promote and support wise use and sustainable development of the global environment
Poverty reduction and improvement of living standards worldwide within a sustainable framework
