L18- Strategies influencing growth and development pt 4

Question 1

Role of international institutions

Answer 1

• after ww2, US + USSR emerged as a superpower= determined to not neglect international relations= set up international institutes that designed to promote more harmonious relations

Question 2

International institutions examples

Answer 2

• International Monetary Fund (IMF)
• World Bank
• The general agreement on tariffs and trade

Question 3

International monetary fund

Answer 3

-Oversaw Bretton Woods system (global fixed exchange rate system) =countries fixed their currency against the US dollar (which was backed by gold)= ended when Bretton Woods system broke down in the 1970s, US and UK adopted floating exchange rates.
- provides short term loans to countries that have balance of payments deficits and are no longer able to fund due to capital flight ot a downgrading of the country’s debt = IMF funds these loans by financial contributions from its members

Question 4

World Bank

Answer 4

• originally set up to provide long term loans for reconstruction and development to member nations whose economies were destroyed in ww2
• now aims to promote economic development and reduce poverty in middle and low income countries

Question 5

NGOs

Answer 5

• non- profit organisations- support economic and political development of LEDCs
• 2 groups:
• operational NGOs= focus on community based development schemes
  e.g. Red Cross
• advocacy NGOs= promote causes through lobbying, info campaigns etc