Global governance economic

Question 1

WTO Success Example - CPTPP 2018

Answer 1

Established a free-trade area between 11 countries in the Pacific region - worth $13.5 trillion

Question 2

WTO Success Example - RCEP 2020

Answer 2

free-trade agreement in the world, bringing together the largest economies in Asia-Pacific
E.g add 0.4% annual GDP

Question 3

WTO Success Example - Increase trade

Answer 3

Trade has grown 2100% between 1995 and 2014

Question 4

WTO Success Example - Boeing 2021

Answer 4

A 17-year dispute between the EU and USA over aircraft subsidies was finally resolved when the WTO ruled that Boeing and Airbus had received illegal benefits

Question 5

WTO Failure Example - Trump administration

Answer 5

E.g Ruled that the tariffs the Trump administration imposed on China were inconsistent with global trade rules and yet the USA refused to change its position.

Question 6

WTO Strength Example - Reduce Tariffs

Answer 6

1947 - 40% price of exported/imported good was tariff

2000 - 3% is tariff

Question 7

WTO Weakness Example - Doha Trade Round 2001

Answer 7

Series of negotiations with good aims, lowering trade barries, facilitating increased global trade and lowering agricultural subsidies

However failed and never went ahead

Question 8

WTO Weakness Example - Consensus

Answer 8

Each of its 164 member states has the power to veto decisions, so they must be made unanimously

Question 9

WTO Quad Weakness Example - Gambia

Answer 9

Fish freezing plant given by Japan
Gambia has no refridgerated trucks so it’s unused

Question 10

WB Weakness Example - Ugandan Honey bee

Answer 10

World bank gave money 4 times to Uganda for honey bees, each time money disappeared through corruption

Question 11

WB Weakness Example - Displacement

Answer 11

3.4 million

Question 12

WB Weakness Example - North Macedonia

Answer 12

Road upgrade and development project destroys parts of forests and the environment which it cuts through

Question 13

WB Weakness Example - Weighted Vote

Answer 13

US - 15% of vote

Question 14

WB Strengh Example - Gambia

Answer 14

World bank gave them sand for beaches + buildings

Question 15

WB Strength Example - Environment

Answer 15

Loaned India $65m to fund renewable energy

Question 16

WB Strength Example - Lending money

Answer 16

2021-22 - Lent $114.9 billion to developing countries to support projects designed to lessen the impact of increased energy and food prices

Question 17

WB Strength Example - Debt relief

Answer 17

By 2022, $76 billion in debt relief had been awarded to 37 of the worlds’ poorest countries

Question 18

WB Strength Example - Bangladesh

Answer 18

Provided humanitarian aid by with a rural water supply and saniation projects.
Provided nearly 1.2 million with access to improved water sources and hygienic latrines

Question 19

IMF Strength Example - Brazil

Answer 19

2002, loaned $30 billion to stop it from defualting.
Since then it has carried out free market reforms and has maintained strong economic growth

Question 20

IMF Strength Example - Ukraine

Answer 20

March 2022, gave $1.4 billion to Ukraine to help it survive economic shock of the Russian invasion,
2023 Loaned a further $15.6 bn to Ukraine

Question 21

IMF Strength Example - Assistance

Answer 21

Since 2020 - 96 Countries assisted

Question 22

IMF Weakness Example - Greece

Answer 22

Unpopular - 61% of citizens rejected it in a 2016 referendum
Forced to accept it anyway

Question 23

IMF Weakness Example - Shock Therapy

Answer 23

1990s Shock therapy in Russia led to economic collapse and rise of Anti-Western Sentiments

Chomsky - SAPs have disastrous consequences

Question 24

IMF Weakness Example - Tanzania

Answer 24

2000 - Demanded it start charging for education and healthcare to increase government revenue
Result: School enrolment drop from 98% to 66% and AIDS rate increasing by 8%

Question 25

IMF Weakness Example - Ecuador

Answer 25

2019 - Forced to undertake a 6% spending cut
Lead to demonstrations and unrest

Question 26

IMF Weakness Example - Joseph Stiglitz

Answer 26

Undemocratic policy formulation process

Question 27

IMF Weakness Example - Voting procedure weighting

Answer 27

Made by vote of board governors
Weighting for each coutnry is unequal
E.g USA 16% , Uganda 0.1%

Question 28

IMF Weakness Example - Neo liberal Policy

Answer 28

Ha Joon Chang - Neoliberal policy is not always successful

Question 29

Adam Smith Wealth of Nations

Answer 29

Division of labour among workers into specialised tasks is a driver of growth in the transition to an industrial, capitalist economy.

‘Invisible hand’ - individuals acting in self interest within a free-market can yield productivity and social gains through a system of mutual interdepend

Availabitility of specialised tools and equipment would allow workers to further specialise and thereby increase productivity.
-Ongoing Capital accumulation is necessary for this to happen, owners of capital need to keep and reinvest profits from their investments.

Question 30

Structural Development Theory (SDT)

Answer 30

Economies should preserve an external trade balance in the long term, as it will result in evolution and growth over time.

Question 31

Neo-Classical Development Theory (NCDT)

Answer 31

A steady economic growth rate results from 3 driving forces:

Labour
Capital
Technology

Question 32

Classical Economic Development Theory (CEDT)

Answer 32

Capital accumulation
Reinvestment of profits derived for speciailisation
The division of labour
Pursuit of comparative advantages

Question 33

Prebisch Singer Hypothesis (SDT)

Answer 33

The prices of primary goods (such as raw materials and agricultural products) tend to decline relative to the prices of manufactured goods over time.

Because demand for primary products is relatively inelastic, while the demand for manufactured goods is elastic

Question 34

Infant Industry Argument (SDT)

Answer 34

New or developing industries in a country need temporary protection from foreign competition in order to grow and mature.