Global governance: political and economic III Flashcards
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Structural Adjustment (SAPS)
- Policy changes implimented by the International Monetary Fund and the World Bank in developing countries. These policy changes are conditions for getting new loans from the IMF or World Bank, or for obtaining lower interest rates on existing loans
- Group debtor states entered the 1990s 61% more indebted than in 1982 and in 2002, introduced Poverty Reductuon Strategy Papers
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Criticims of IMF from Guardian
- Bad response to debt crises in Pakistan and Sri Lanka, crtiicises policy instead
- Facing increased resistance after attending policy conditions to loans
- Unpopular in Asia - trying to dismantle what they thought was ‘crony capitalism’ and change their economic management was seen as neo-colonial as it was characterised by state-led investment in specific industries
Why are criticisms from the IMF a problem
The decline of US power and emergence of alternative lenders and the reputuation as domineering has left it in an anamolous position
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Attempts made by the IMF to reform
- IMF officials publicly acknowledge that austerity could be counterprudctibe and that austerity tackling inequality had become of the institution’s central concerns
- Selective use of once-taboo policies such as capital countries to restrict the flow of foreign capital in and out of a national economy was reconsidered
Significance of the IMF reforms
-News outlets saw the transofmration and believe it has been oversold
- IMF despite thesr rhetorical shifts continue to insist on just as many, if not more, of the same structural reforms of borrowers as ever, sacking civil servants, cutting pensions, lowering minimum wages
- 2020 study by the Global Development Policy Centre at Boston University, found similar - today’s IMF recognises that austerity contrains growth - while continuing to demand austerity from states in receipt of its aid
G20 summit and who takes part in it
19 sovereign countries, the European Union (EU), and the African Union (AU). It works to address major issues related to the global economy, such as international financial stability
What’s been on the agenda for the G20
Gathering in Rio de Janeiro, Brazil this week to discuss the world’s most pressing challenges. The focus on the summit will be social inclusion, global governance reform, and energy transitions.
Absolute poverty
Living below 1.90$ a day
Income below a certain threshold necessary to meet basic necessities of life (food, shelter, clothing, rent).
Relative poverty
Country by country, if you are under 60% of the median income
Measure of poverty
A specific tool or metric used to assess the level or extent of poverty, such as income thresholds or the poverty line.
Indicator of poverty
A broader sign or factor that suggests poverty, like unemployment rates, access to education, or poor health, which may signal the presence of poverty without directly measuring it.
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Liberal view on development
- Typically focus on individual freedoms, economic interdependence, democartic governance and the role of IGOs and cooperation
- Free markets and global trade, civil liberties, gender equality and education
- Developmental aim as an opportunity to promote global stability
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Realist view on development
- Typically focus on the importance of state sov, military power and strategic geopolitical autonomy
- State-centered development and national security over human rights
- Anarchic international self-help system and skeptical towards international aid - economic development secondary to enhancing national power - not just improving living standards
- Trump has cut USAID
What is development
Traditionally developed on centering economic growth, it now considers political, social, economic and environmental growth
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What is the Brandt line and what is wrong about it
A political rather than a geographical term to contrast the developed, industrialised world (Global North) with the developing, agricultural world (Global South)
- Believes of sustained wealth, MNCs, leading players in global free trade agreements, and South dependent for foreign direct investment
- However many states in the South have industrialised - BRICS, China’s dramatic increase in economic growth, World Bank has estimated high income states in GBN have been responsible for 2/3 of CO2 released in the atmosphere since 1850. 2005 - China largest with Brazil and China respectively 5th and 8th place
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Moyo view
- End of aid dependency
- Responsibility of African government rather than Western intervention - aid contributes to scandals
- Over 60 years aid has failed to decrease poverty or increase growth
- Call for Equal Partnership - foreign direct invesment and opportunities and partnership instead of sympathy
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Collier view
- Bottom Billion - world’s poorest countries
Importance of strong institutions and good governance and targeted international support - Comprehensive, multi-faceted strategy is needed, addressing both humanitarian needs and econ. development
- Trade and market access for integrating developmental countries
Wait for Trish to respond.
