Political and Economic Governance Flashcards
When and why was the UN established?
The UN was founded in 1945 as an instrument of global governance and a preventor of wars.
What is set out in the preamble of the UN Charter?
goals to ‘save succeeding generations from the scourge of war’, to ‘reaffirm faith in fundamental human rights’ and to ‘promote social progress and better standards of life’
How many active ‘organs’ are there of the UN?
5 - Security Council, General Assembly, ECOSOC, ICJ and the Secretariat
How does the Security Council work?
UNSC Resolutions are binding on all UN member states and, if necessary, enforced by UN peacekeepers
It is made up of 5 permanent members (the USA, the UK, China, Russia and France) and ten non-permanent members elected for two-year terms by the General Assembly
Security Council resolutions are passed if 9 out of 15 members vote for them (but if any of the P5 vote against a resolution, it is vetoed)
What are UN peacekeepers?
Soldiers provided voluntarily by UN member states
Who are the current non-permanent members of the UNSC?
As of April 2024, the non-permanent members are Algeria, Ecuador, Switzerland, Slovenia, South Korea, Mozambique, Japan, Guyana, Malta, Sierra Leone
Strengths of the UNSC - arguments
Represents the realities of power
Can act collaboratively
Represents collective security
Weaknesses of the UNSC - arguments
Unrepresentative composition
Internal rivalries cripple efficiency
Difficult to reform
Strengths of the UNSC - represents the realities of power
Does not accurately represent population or states, but it does accurately represent the distribution of economic, military and political power across the globe
e.g. no African P5 member because there is no African superpower
P5 distinguishable by their possession of nuclear weapons (only 4 states outside the P5 also have them - India, Pakistan, Israel and North Korea)
Having the most powerful states dominating the UNSC means that peacekeeping operations or interventions are more likely to succeed because it is backed by global power (the inefficiency of the League of Nations was down to the fact that the USA and the USSR did not participate)
Strengths of the UNSC - can act collaboratively
Has proven itself capable of collaboration through successful peacekeeping operations.
e.g. of recent success is a peacekeeping operation in Cote d’Ivoire after a damaging civil war in 2004. Around 12,000 peacekeepers successfully disarmed nearly 70,000 combatants. Furthermore, they oversaw two peaceful elections and the return of 250,000 refugees
Strengths of the UNSC - represents collective security
UNSC is a representation of the principles of collective security - than an attack on any state is an attack on the global order of sovereignty
e.g. 1990s Gulf War, where Iraq invaded Kuwait and was repelled by a UNSC-authorised forced
Evidence that UNSC is successful in promoting collective security? - almost 300 conflicts since WW2, but less than 10 have been interwars
Weaknesses of the UNSC - unrepresentative composition
A third of the UNSC’s members are from Western countries despite only representing about a 1/7 of the global population
Asia represents 59% of the global population but only a fifth of total seats on the security council
P5 contains 3 ‘Western democracies’ and a further non-democratic European country
Titus Alexander - UNSC = a ‘pillar of global apartheid’
Weaknesses of the UNSC - internal rivalries cripple efficiency
Anything which contradicts the core national interests of one P5 member will be vetoed. This is especially true when one of the P5 feels that a resolution may ‘advantage’ another P5 member relative to themselves
e.g. recent vetoes include the USA (resolutions against Israel), Russia (resolutions against Asaad in Syria) and China (with regards to the Uyghur issue)
Weaknesses of the UNSC - difficult to reform
Issues difficult to solve as members of the P5 would veto any attempt to expand the permanent membership of the UNSC, seeing it as diluting their own power - makes it effectively impossible to add members
Global politics has changed significantly since 1945 and many states feel as though they should be permanent members (e.g. Germany, Japan and India), but they have no viable route to achieving this
How many members are there of the UN?
193 - all of these states must be treated equally according to the UN charter
Current challenges to the UN
Climate change
Nuclear weapons and proliferation
Peace and security
Reducing poverty
Current challenges to the UN - climate change
The UN’s key task has been to get a majority of member states to agree on the existence and impact of climate change - achieving this though IPCC, an objective scientific panel.
Organises key international summits (e.g. 1992 Rio summit at which states agreed to work together to reach further specific agreements to tackle climate change)
Current challenges to the UN - nuclear weapons and proliferation
UN has played a leading role in limiting the proliferation of nuclear weapons and other weapons of mass destruction
Provided a vital forum for states to decide on, codify and sign the NPT (only 4/193 UN member states haven’t signed)
UNGA has a dedicated Disarmament Commission
Within the UN system, there is the IAEA which monitors states and ensures they are abiding by the terms of the NPT
Current challenges to the UN - peace and security
UN peacekeeping activities have expanded in scope and number since 1945 (becoming more active since the end of the Cold War lessened the state of gridlock between Russia and the US)
1990s saw the biggest increase in UN-approved military intervention e.g. Somalia (1992), Rwanda (1994) and Bosnia (1995) - however, some of these were unsuccessful
As of April 2024, currently 11 deployed peacekeeping missions
Current challenges to the UN - reducing poverty
MDGs (agreed in 2000) represented a huge increase in focus and scope for the UN’s development efforts
Continued this through the SDGs when the MDGs met their endpoint in 2025
Examples of aims in MDGs and SDGs
MDGS - eradicate extreme poverty and hunger, to promote gender equality
SDGs - no poverty, zero hunger, affordable and clean energy
Successes and failures of the MDGs
Rates of extreme poverty cut in half (but 1/8 people worldwide still go hungry)
17,000 less children die each day (but 6 million children still die before their 5th birthday each year)
Maternal mortality fell 45% (but only 1/2 of women in developing regions receive prenatal care)
Are the SDGs on track for success?
No
Deputy Secretary-General of the UN Amina Mohammed estimated that 600 million people will still be living in extreme poverty in 2030
Currently a sustainable development financing gap of $4 trillion annually
Explain the function of the UN Secretariat
It is the UN’s bureaucracy, led by the UN secretary-general
Includes branches such as the Department for Peacekeeping Operations (DPKO), the UN Development Programme (UNDP) and the Office for the Coordination of Humanitarian Affairs (OCHA)
Explain the function of the UNSC
It is the UN’s executive committee, responsible for peace and security, and for passing binding resolutions
It has five permanent members and 10 non-permanent members chosen by regional quotas
Explain the function of the UNGA
Acts as the UN’s Parliament. Every member state can participate in debates and is represented equally.
Its annual meetings allow world leaders to address the UN and there are often votes on major issues (e.g. in 2012, there was a vote about granting Palestine observer status)
Explain the function of the ICJ
Makes judgements principally on territorial disputes between states
Explain the function of the UN Economic and Social Council
Responsible for economic security and development.
Made up of 54 member states, elected by the UNGA for two-year terms
Oversees the work of the WHO and UNICEF
Founding objectives of the UN
Stop war
Advance human rights
Social progress
Strengths of the UNGA
Global forum
Equal representation
Promotes dialogue between states (thus reducing risk of conflict)
Expertise
Weaknesses of the UNGA
Represents states, not people
‘Rewards’ dictatorship
Merely a ‘talking shop’
Strengths of the UNGA - global forum
Global forum for the solving of global issues - it is a space in which problems affecting multiple countries can be discussed
e.g. 31st UNGA special session on the coronavirus pandemic gathered state representatives to discuss how to tackle the economic, social and political fallout of the virus
Proof of effectiveness? - no state has ever permanently withdrawn from the Assembly (Indonesia did so briefly in 1965 but came back the next year)
Strengths of the UNGA - equal representation
One vote per state regardless of population size or economic/military/political power
Encourages participation from smaller states and ensures their voices can be heard - it is not possible for powerful states to veto resolutions and they can be outvoted by developing states
e.g. the Group of 77 (a coalition of developing states) was instrumental in passing the resolution against the apartheid regime in South Africa and continues to be fundamental in supporting initiatives towards global disarmament and demilitarisation
Strengths of the UNGA - promotes dialogue
Promotion of dialogue reduces the chance of conflict
Provides an outlet for verbal, diplomatic sparring, allowing states to communicate their frustrations in a non-violent manner
Even where dialogue is not particularly constructive (e.g. Khrushchev banging his shoe on a table while denouncing the Filipino delegate as a ‘toady of American imperialism’ in 1960), this is still better than war
Number of interstate wars has fallen dramatically since 1945
Weaknesses of the UNGA - represents states, not people
Each state gets a single vote regardless of population size
e.g. at an extreme, it is possible for states representing only 5% of the world to be able to pass a vote on an important issue because the global population is so unevenly distributed (undemocratic?)
UNGA provides forum for state governments to debate and vote based on their interests without any representation for oppressed minorities within states (e.g. Uyghur Muslims in China, LGBT people in Russia)
Weaknesses of the UNGA - ‘rewards’ dictatorship
State governments decide who they want to send as delegates to the Assembly and instructs them on how to vote - this ‘rewards’ dictatorship as an autocratic state is able to cast a vote in the UN on behalf of all their citizens, regardless of whether or not these citizens have democratically consented to their rule
This leads to despotic regimes being able to play a key role in shaping global policy
e.g. Saudi leadership of the UN Human Rights Commission (a sub-body of the UNGA) in 2015, despite the state having beheaded more people than ISIS that year
Weaknesses of the UNGA - merely a ‘talking shop’
UNGA resolutions are not binding
Criticism of it being a talking shop as the same issues are debated over and over again without any progress
e.g. Israel has been condemned in 45 resolutions for activities such as illegal settlement-building in Palestinian territories - yet there have been no moves towards peace in the region, nor any tangible attempt to hold Israel to account
Kofi Annan (former Secretary-General) criticised the UNGA for its ‘watered down’ resolutions
Examples of UNGA committees
Disarmament and International Security Committee
Economic and Financial Committee
Social, Humanitarian and Cultural Committee
Strength of the UNGA - expertise
The UNGA committees are a means of streamlining the work of the assembly into focused committees, providing expertise on particular matters
In a year, each committee will submit as many as 60 recommendations for the UNGA to consider
e.g. in 2015, the UNGA adopted the recommendations of the Economic and Financial Committee on cooperation with middle-income countries
e.g. in 2015, the UNGA adopted the recommendation of the Social, Humanitarian and Cultural Committee regarding the rights of migrants
Examples of special agencies within ECOSOC
WHO
Strengths of the WHO
Provides a forum to tackle the issues of health and mortality
Particular focuses for the WHO include diseases such as malaria, tuberculosis and AIDs as well as research into issues like antibiotic resistance
Biggest successes of the WHO - eradication of smallpox through a vaccination and education programme and the eradication of all polio in all but 3 countries (Pakistan, Nigeria and Afghanistan - areas in which WHO workers were attacked)
59% reduction in child mortality and 44% reduction in maternal mortality due to WHO initiatives
Weaknesses of the WHO
Chronically underfunded, which limits its efficiency (relies on private donors like Bill Gates, who provides 9.4% of WHO funding through his foundation)
Allegations of inefficiency - criticised for incompetency during the 2013-15 Ebola epidemic in West Africa
Cannot impose binding directives on member states
Strengths of the ICJ
Upholds international law
Genuine neutrality
Gives states a way to ‘back down’
Weaknesses of the ICJ
Jurisdiction is conditional
Unenforceable rulings
Inability to solve intra-state conflicts
Strengths of the ICJ - upholds international law
Principal institution which upholds the concept of ‘international law’ by arbitrating disputes between states according to established principles and conventions
Involves conflict resolution (e.g. 2018 case regarding activities by Nicaragua along the border of Costa Rica) but also the regulation of issues like applying the UN Convention on the Law of the Sea
e.g. in 2002 the Court determined the land and maritime boundary between Cameroon and Nigeria
Strengths of the ICJ - genuine neutrality
The 15 judges are required to be independent and neutral by the Articles 16-18 of the ICJ Statute
If a case involves the state of a judge on the ICJ, then the other state may select an additional ‘ad hoc’ judge to balance any possible bias in judgement
The representation of states of varying levels of power (e.g. current President is Nawaf Salam, who is Lebanese) means that most states perceive the Court as genuinely neutral
e.g. of its perceived neutrality making its decisions seem more legitimate - ICJ rejected a claim by Bolivia against Chile for coastal land lost in 1883 and Bolivia accepted the judgement as one made by a neutral body
Strengths of the ICJ - gives states a way to ‘back down’
States may not want to back down in disagreements as it implies a loss of prestige and respect - ICJ rulings provide a way for states to respectably draw back from conflict
e.g. Nationalist tensions between Thailand and Cambodia about a 900-year-old temple (Preah Vihear) defused by an ICJ ruling, preventing conflict in the region
Weaknesses of the ICJ - jurisdiction is conditional
ICJ jurisdiction only applies when both states have agreed to abide by a ruling
e.g. in 2018, Iran brought a case against the USA about sanctions imposed upon them. The ICJ ruled in Iran’s favour and issued an order for the USA to lift the sanctions, so the USA simply refused on the grounds that they had not agreed to ICJ jurisdiction
Weakness of the ICJ - unenforceable rulings
No formal mechanisms for the enforcement of its rulings (especially true in the case of powerful states who are able to veto UNSC resolutions)
e.g. despite a ruling in 2016 that China does not have a right to sovereignty in the South China Sea, China has continued to build its naval bases and military presence in the region
Weaknesses of the ICJ - inability to solve intra-state conflict
ICJ can only solve conflicts between states. It has no jurisdiction to intervene in a state’s internal affairs
Renders it powerless to deal with many disputes and conflicts including civil wars/disputes of independence (such as Catalan independence from Spain), any intra-state genocide (such as within Sudan and Myanmar) or human rights abuses (such as in Russia)
ICJ has proven itself unable to deal with the crises of today
Successful international treaties within global governance
Treaty of Rome (formed EEC) (1957)
ASEAN Free Trade Area agreement (1992)
Kyoto Protocol (1997)
Rome Statute (formed ICC) (1998)
Treaties ARE an effective means of global governance
Allow states to form agreements on any issue, ranging from the environment to world health
Targeted and specific, which allows states to retain control over their sovereignty by picking and choosing which agreements suit their national interests
Represent formal international law, increasing likelihood of accountability
Treaties are NOT an effective means of global governance
States can choose whether or not to sign up to them (3/5 UNSC members have not ratified the Rome Statute) and can leave at any time (North Korea on the NPT)
What is NATO?
A collective military security agreement that was signed at the start of the Cold War (1949), with the aim of protecting its members from the threat of military (especially nuclear) attack from the Soviet Union
What is article 5 of the NATO treaty?
An attack on one member shall be regarded as an attack on all member states
When has NATO’s Article 5 been used?
Only once, when NATO allies indicated their support for the USA after the 9/11 attacks
When was NATO established and how many members did it have at its inception?
Founded in 1949 by the signing of the Washington Treaty and originally had 12 members (the USA, Canada and 10 states from western Europe)
How many members does NATO have currently?
32 (most recent addition is Sweden)
What was NATO founded to do?
To provide collective security against the threat of the Soviet bloc and to promote deeper political integration and stability in Europe
What was the early role of NATO?
Its original purpose, according to Lord Ismay (NATO’s first secretary-general) was ‘to keep the Russians out, the Americans in and the Germans down’
What was formed in response to the emergence of NATO?
The Warsaw Pact was formed in 1955 as a rival collective security organisation comprised of the USSR and 7 of its puppet states
Arguments about NATO’s changing role?
Involvement beyond Europe
Growth and expansion into Eastern Europe (and the implications for peace and stability)
How did the end of the Cold War change NATO?
The end of the Cold War brought about an existential threat for NATO
However, NATO was still committed to fighting militant nationalism in Europe, as well as promoting democracy and political integration
Changing role of NATO: involvement beyond Europe
NATO’s primary role was collective security in Europe - however, changing political context challenged this
Only time Article 5 invoked was after 9/11 - Afghanistan invasion
NATO took control of the International Security Assistance Force to provide peaceful conditions in which democracy could flourish
NATO maintained a presence in the country from 2003 to 2014
Why was NATO’s role in Afghanistan controversial?
NATO’s military personnel suffered considerable casualties (more than 2000 US and 400 UK personnel were killed). People questioned how NATO troops serving and dying in Afghanistan helped the national interests of the member states
Civilians were killed, particularly in airstrikes (e.g. the bombing of a wedding party by a US air raid in 2008). Not only did this cause intense suffering, it also caused tensions between NATO and the Afghan government
Changing role of NATO: growth and expansion into eastern Europe (and implications for peace and stability)
Initial role of NATO - collective security to ultimately bring about peace
Has expanded into former Soviet bloc countries - 10 former Warsaw Pact members have joined
This arguably has negative implications for peace and security and NATO can be accused of aggressive expansion - Putin called it ‘menacing’
Ukraine invasion partly caused by NATO?
Strengths of NATO?
Countries bound by shared values of freedom, democracy and rights
Has changed with the times and found new ways to serve its members
Proven capability in military action
Successful NATO operations?
Air campaign against Bosnian Serbs in Kosovo
Weaknesses of NATO?
Dominated by the USA
Original purpose redundant?
Doesn’t actually serve its purpose of maintaining world peace
Evidence that NATO is successful in promoting democracy and rights?
Using the 2018 “Freedom in the World” index, twenty-six of NATO’s twenty-nine members were rated as “free.” In contrast, only 39 percent of the world’s population lives in countries rated as “free.”
Is NATO dominated by the USA?
Much bigger expenditure on NATO than any other country (around $860 billion - next highest is Germany with around $68 billion)
Only time Article 5 invoked was to support US
However, US has sustained significant losses in NATO, so it is not disproportionately dominant
What event showcased the failings of economic governance?
The 2008 financial crisis - this was exactly the type of situation that institutions like the IMF and the World Bank were created to prevent.
The crisis was caused by a lack of strict regulations in the global financial system - this was partly due to the neoliberal economic agenda promoted by the Bretton Woods institutions
The IMF failed to see the crisis coming (even until April 2007, it was forecasting that ‘world growth will continue to be strong’)
How did the economic governance institutions deal with the 2008 financial crisis?
The G20 summit in 2009 saw states take important decisions to inject capital into their banking systems in order to prevent the collapse of the global banking system (e.g. the UK placed the Royal Bank of Scotland under state ownership and the USA took similar measures with failing banks Fannie Mae and Freddie Mac)
The IMF lent up to $700 billion to states most affected by the downturn (esp PIIGS)
The World Bank tripled its lending, primarily to middle-income states
What did the Bretton Woods conference establish?
The IMF (1947) - established the US dollar as the basis against which all other states’ currencies would be valued, stabilising world countries from major fluctuations in their value
The International Bank for Reconstruction and Development (1946) - later known as the World Bank, it had the aim to provide a pool of investment for middle-income states
The General Agreement on Tariffs and Trade/GATT (1947) - later known as the WTO, it is an international forum in which states can make trade deals and establish international rules on trade
What was the founding purpose of the IMF?
Its initial role was to encourage stability in world exchange rates. It oversaw a system of fixed exchange rates (which broke apart in 1971), meaning that investments were more stable and currency value was less likely to fluctuate.
What is the role of the IMF today?
Provides economic stability by giving financial support or loans to states that are suffering from debt crises. For example, in 1976 the UK borrowed $3.9 million from the IMF. More recently, it bailed out the PIIGS in 2008.
It monitors the economic outlook of both the world economy and its individual member countries, including forecasting potential threats.
It advises member countries on how to best manage their economies, particularly less developed member countries on which technical expertise may be lacking.
How does the IMF perform its function of surveillance and monitoring?
Advises its 189 member states by encouraging policies that foster economic stability, reduce vulnerability to economic and financial crises, and to raise the standard of living.
e.g. Lagarde predicted Brexit would lead to increased inflation and reduce the UK’s GDP by 5.5.%
How does the IMF perform its function of lending?
A member country may request IMF financial assistance if it suffers, or is likely to suffer from, a debt crisis.
How does the IMF perform its function of capacity building?
IMF experts can provide training to member states to help them manage their economies more effectively
e.g. experts on tax collecting may advise member states about how to implement a fair and effective taxation system
The IMF has established Regional Training Centres in Africa to help build expertise in Sub-Saharan African states
Criticisms of the IMF
Undemocratic
Imposition of Western free-trade agenda
Failure to perform its function of surveillance
Strengths of the IMF
Adaptability
Can genuinely help states that are struggling economically
Weaknesses of the IMF: undemocratic
Some has criticised the IMF for being undemocratic - voting power is weighted according to how much each state contributes financially
e.g. the IMF requires 85% of votes to make a decision, but the US has 17% of the weighted vote (essentially giving it a veto)
Weaknesses of the IMF: imposition of Western neoliberal agenda
Based on neoliberal values of free trade
This is most evident in the SAPs - in order to receive a loan, a state must undergo economic reforms (e.g. cutting wasteful public spending, privatisation, reducing public sector wages)
This impacts upon state sovereignty!!
These became so controversial that the IMF had to change their name to ‘poverty reduction strategies’
Examples of successful SAPs
South Korea in 1997 - arguably brought it closer to developed states
Examples of SAPs having detrimental effects on state economies
e.g. pensions cut in Greece (estimated to be worth 25-55% less than at the beginning of the crisis)
e.g. 40 million people fell below poverty line in Indonesia due to SAP during Asian Financial Crisis
Weaknesses of the IMF: failure to perform its function of surveillance
Most obvious criticism is that it doesn’t perform its function of surveillance
e.g. 2008 financial crisis!!
Strengths of the IMF: adaptability
Shown itself to be adaptable and flexible in several ways
1971 - when the system of fixed exchange rates ended, the IMF began publishing recommendations on economic policy to guide the world economy
1990 - after the fall of communism, the IMF refocused on debt reduction and economic development to aid the ex-Soviet bloc states
2017 - increased the voting quotas of Brazil, India, Russia and China in response to changes in the global economy
Has proven itself fit for purpose in am evolving economic landscape
Strengths of the IMF: positive action in some countries
Focus on capacity building
e.g. Regional Training Centres established in Sub-Saharan Africa
Played a key role in ‘bailing out’ the PIIGS - loans to Greece alone totalled $146 billion over 3 years
Objectives of the World Bank
Providing loans and technical and financial assistance to support reconstruction and development
Growing emphasis on sustainability
Carries out analytical work on development matters, which is made freely available to states and NGOs working on development
Examples of World Bank projects
Invested $140 million in ‘Higher Education Centres of Excellence’ in eastern and southern Africa
Provided $700 million for developing renewable energy centres in Ghana, which generate up 40% of Ghana’s domestic power
Since 2002, the WB has invested over $3.3 billion in development and reconstruction in Afghanistan
Strengths of the World Bank
Anti-poverty funds
Adaptability and sustainability
Weaknesses of the World Bank
Promotes economic dependence
Corruption
Western dominance
Ecological damage
Strengths of the World Bank: anti-poverty funds
In 2016, the WB provided $63 billion in low interest loans to 275 projects in developing states
e.g. it has worked with the Arab League to reduce female unemployment, expanded electricity and power supply to countries like Tanzania, funded programmes to extend education in Yemen
Strengths of the World Bank: adaptability and sustainability
Willing to adapt and change its practices to increase the efficacy of its projects
e.g. used to focus on grand infrastructure projects like hydroelectric dams but when faced with issues with this approach (like the fact that local technical knowledge to sustain and repair such infrastructure was limited), it changed its focus to development involving local people and organisations
e.g. current project to build low-cost schools in Eastern Afghanistan, investment in higher education in eastern and southern Africa
Weaknesses of the World Bank: encourages economic dependence
A common conditionality for World Bank loans to developing countries is the rapid growth of crop exports so that they can repay their loans
These ‘cash crops’ are produced to be exported, rather than for domestic consumption
e.g. cocoa beans in Cameroon and coffee beans in Ethiopia
Causes developing countries to become dependent on the West
Weaknesses of the World Bank: Western dominance
Imbalance of voting powers
USA carries 16% of voting powers but no other state has more than 5%
Every World Bank president (including current President Ajay Banga) has been American
Rising powers like Brazil, India and China have less than a third of the voting powers of the USA
Weaknesses of the world bank : corruption
Many WB loans have been known to be diverted from their intended purpose - lines the pockets of corrupt government officials
e.g. in 2016, officials in the Afghan capital Kabul embezzled $700 million of aid money from the WB
e.g. a significant portion of a $30 million loan to Armenia to restore the capital’s piping system has gone missing
However, not the fault of the WB
Weaknesses of the World Bank: ecological damage
Despite WB’s recent focus on sustainability, pushing economic development as a condition of loan repayment has caused ecological damage
WB invests in projects to generate rapid economic growth which may have negative environmental impacts
e.g. coal-fired power plants in South Africa, oil rigs off the coast of Ghana, gold mining in Peru (which contaminates the water supply)
Objectives of the WTO
To progressively reduce tariff levels between member states
Strengths of the WTO
Relatively democratic
Achieved its goal of tariff reduction
Weaknesses of the WTO
Gridlock
Inability to compel powerful states
Negative externalities
Strengths of the WTO: relatively democratic
Far more democratic than other global economic institutions
Decisions made by a simple majority - each member state has a single vote with equal weight
Not overly dominated by Western states - approx. 60% of WTO members are developing states
Rules of the WTO collectively written by its member states and its member states elect the leadership
Strengths of the WTO: tariff reduction
Has successfully reduced trade barriers (down from an average of 22% in 1948 to 5% in 1999), making it easier for states to trade, in turn bringing down the cost of manufactured goods
e.g. so-called ‘Banana wars’ solved by WTO - EU agreed to reduce tariffs on Central American bananas, making bananas cheaper for EU citizens
Weaknesses of the WTO: gridlock
Gridlock has left the WTO unable to implement any further free trade reform
‘Doha round’ of negotiations for reducing tariffs began in 2001 but have since stalled over disagreements about issues like agriculture (developing countries reluctant to reduce tariffs on importing external agricultural goods as it puts their farmers at risk)
Weaknesses of the WTO: inability to compel powerful states
Possible for states to ignore WTO rulings - unfair
2012 - WTO ruled that US aircraft manufacturer Boeing had received illegal government subsidies (seen as a violation of fair competition and free trade), but the US government continued to provide government subsidies anyway
Weaknesses of the WTO: negative externalities
WTO prioritises free trade above issues like workers’ rights, child labour and environmental damage
e.g. protest at 2003 WTO meeting in Cancun
When and why was the G7 founded?
Founded in 1975 as an informal forum for governments of advanced economies to have regular correspondence
Strengths of the G7
Effective discussion forum
Internal legitimacy
Global economic power
Weaknesses of the G7
Internal divisions
Global illegitimacy
Unrepresentative membership
Strengths of the G7: effective discussion forum
Provides a forum where states can discuss common concerns/interests openly
Easy to reach policy consensus due to small meetings where member states have similar values
e.g. 2016 G7 summit confirmed the G7 Action Plan on Countering Terrorism and Violent Extremism
e.g. 2023 G7 summit - member states agreed to provide Ukraine with budget support
Strengths of the G7: internal legitimacy
The G7 utilises a rotating presidency system on an annual basis. The presidency brings with it the power to direct the agenda for the year’s summit (2024 summit to be under the Presidency of Italy). This prevents any one state from dominating discussions and makes the group more internally democratic and legitimate, contributing to productive discussion
Strengths of the G7: global economic power
Because of the overwhelming economic power of its member-states, the G7 is able to make important interventions in global economic governance.
1999: Cancellation of $100bn multilateral and bilateral debt owed by developing countries to G8 countries
2005: Doubling aid to Africa and cancelling debts owed by 19 developing countries at the Gleneagles Summit
2008: Key role in coordinating responses to the financial crisis and increasing funding for the IMF
2014: Punished Russia by expelling it from the G8 after it annexed Crimea
Weaknesses of the G7: internal divisions
There have been some serious divisions within the G7 in the past four years. President Trump argued that other states were ‘exploiting’ the US and responded by imposing steel tariffs on the EU, Canada and Japan). Trump also argued in 2018 and 2019 that Russia should be reinstated to the G7. In 2019, the G7 for the first time ever did not issue a ‘joint communique’ (a common agreement published at the end of the annual summit)
Weaknesses of the G7: global illegitimacy
The G7 has been accused of promoting neoliberal economic policy in the interests of developed countries, to the detriment of developing countries and other issues. In particular, the G7 has been unwilling or unable to seriously debate global poverty and climate change
e.g. 2016 G7 meeting - leaders reconfirmed the importance of free trade and their commitment to fight protectionism
Weaknesses of the G7: unrepresentative
The G7 is no longer representative of the dominant share of the global economy. In the late-1980s it accounted for nearly 70% of the global economy but today this is 46%, largely because of the rise of states like China, India and Brazil.
The exclusion of China, the second-largest economy in the world, limits how influential it can be. Russia ‘walking away’ from the G8 after being sanctioned and suspended in 2014 shows that the G7 is no longer considered the main forum for economic policy discussions.
The rise of the G20 (discussed below) has arguably increased the irrelevance of the G7
When and why was the G20 formed?
Formed in 1999 as a means of expanding the G7 to include a wider group of industrialised states and emerging economic powers
Strengths of the G20
Broader membership
Forum for discussion
Weaknesses of the G20
Focal point for anti-capitalist protests
Too exclusive
Internal divisions
Strengths of the G20: broader membership
Balance between traditional (e.g. France, UK and USA), newly emerged (e.g. China, Brazil and India) and newly emerging (e.g. Argentina and Indonesia) economic powers
Seen as a more legitimate institution of global governance
Participation of more states enables it to be more effective in tackling global problems
Strengths of the G20: forum for discussion
Like the G7, the G20 can provide a more intimate forum for economic policy discussion than a larger institution like the UN. This has led to some major successes – for example, the free trade deal struck between MERCOSUR (effectively the South American version of the EU) and the EU, announced at the 2019 Osaka Summit after decades of negotiation
Weaknesses of the G20: too exclusive
Although the G20 is more inclusive than the G7, it still excludes the vast bulk of the world’s 195 countries. Many advanced economies (e.g. Poland, Norway and Singapore) and many developing economies (e.g. Nigeria) have criticised the G20 for excluding them from participation. The G20 often ‘invites’ these states as participant observers, but this isn’t the same as membership
Weaknesses of the G20: internal divisions
The G20’s broader membership (compared to the G7) also increases the number of possible policy disputes, and therefore limits the efficacy of the institution. For example, the 2020 summit (hosted virtually by Saudi Arabia) was marred by arguments between the EU and Saudi Arabia for their numerous human rights abuses
Two definitions of poverty given by UN
Absolute poverty - person earns less than $1.25 per day (exclusively economic measure)
Relative poverty - compares somebody’s income against average income of their country and judges whether people have the minimum income needed to maintain their country’s average standard of living (this covers around 10 million people in the UK)
What is a useful way in which to think about development?
In terms of Maslow’s hierarchy of needs - this argues that human beings need to protect their physiological health (e.g. having access to food and water). However, human development is fundamentally limited and incomplete if humans cannot progress through their higher levels of need like esteem (e.g. reducing inequality of income or opportunity) and self-actualisation (e.g. economic empowerment)
Ways of measuring poverty
Economic growth
HDI
MPI
Difficulties in measuring poverty
Gathering data is difficult in developing countries
States can manipulate or withhold information
Difficulties in measuring poverty: states can withhold/manipulate information
e.g. China announced in 2021 that it had lifted 100 million people out of poverty since 2012. However, China defines poverty as earning less than about $2.30 a day, but (as China is classified as an upper-middle income country by the World Bank), the poverty line is much higher, at $5.50 per day
e.g. countries like Slovakia have historically declined to publish figures
Difficulties in measuring poverty: hard for developing states to gather data
Poorer states face challenges in gathering data
17/35 Sub-Saharan African countries have not held a census in the last 20 years - censuses are crucial in measuring poverty levels as a state’s Geni coefficient cannot be measured without accurate population figures
Accessing remote communities can be difficult in states suffering from conflict or have poor infrastructure
Ways to measure development: economic growth
Most quantitative measure of development
Key measures of this are GDP (gross domestic product, which measures all economic activity within a state) and GNP (gross national product, which measures all economic activity by companies and individuals from a particular state)
Most basic indicator of positive or negative development is whether a state’s economy is growing or shrinking (e.g. in 2017, Venezuela’s economy shrank by 13%, whereas China’s economy grew by 7%)
Criticisms of economic growth as a measure of development
Does not take into account political development e.g. China has had high economic growth but a poor record on democracy and human rights
Economic growth can be misleading - e.g. in 2008 Pakistan had GDP growth of 7% but required an IMF bailout
Does not take into account wealth inequality
Ways to measure economic growth: HDI
Human Development Index - a composite indicator of poverty, meaning it takes into account a range of factors to create a score out of 100 (e.g. highest is Switzerland’s score of 0.967, lowest is Somalia with 0.380)
Covers indicators of development like life expectancy at birth, education and income
Criticisms of HDI
Doesn’t factor in income inequality (introduced additional measure in 2010 called ‘Inequality-Adjusted Human Development Indicator’ - however, data on inequality unavailable for many countries)
Ways to measure economic growth: MPI
Multi-dimensional Poverty Index - used by the UNDP
Includes indicators of standards of living like access to drinking water, sanitation and education.
Causes of poverty
North-South divide
World systems theory
Impact of globalisation
Impact of colonialism
Causes of poverty: north-south divide
Yes, cause of poverty: Global North had a headstart (hugely influential in asserting global neoliberal agenda through BW institutions), MNCs based in global North exploit Global South for cheap labour and natural resources)
No, some global south states catching up: many global south states have successfully industrialised, especially the Pacific Rim countries like Brazil, Malaysia and the Philippines. States in the global south included more in economic governance institutions like G20
Causes of poverty: world systems theory
Left-wing globalisation sceptic Immanuel Wallerstein, developed his ‘world systems’ theory arguing that globalisation locks developing countries into a permanent dependency status
Developed (‘core’) countries exploit developing (‘periphery’) countries for materials and labour, leaving the periphery countries dependent on capital from the core.
e.g. the Congo is exploited for its stores of cobalt (used in mobile phones, for example), making it economically dependent on states who buy their materials
Causes of poverty: impact of globalisation
Economic globalisation has arguably benefitted richer countries and left the poorer countries behind
States are increasingly vulnerable to economic downturns that occur outside their borders
e.g. as 97% of Angola’s total exports come from oil, it is heavily dependent on the stability of global oil markets
Causes of poverty: impact of colonialism
When states gained independence, they had little experience of self-government
Borders drawn up arbitrarily - created conflicts (which cause poverty) e.g. dispute between India and Pakistan over Kashmir
(could counter this by saying colonialism brought infrastructure and rule of law)
Theories of development
Modernisation theory
Neoliberalism
Explain the modernisation theory of development
Developed by US economist Rostow and suggests that states need to work their way through several stages of growth (traditional society, preconditions for take-off, take-off, drive to maturity and age of high mass consumption)
Criticised for being far too Western-focused and not taking into account the fact that developing states cannot catch up in a similar way
Explain the neo-liberal theory of development
Urges laissez-faire economics to stimulate economic development (e.g. through free trade, tax reform and deregulation)
(Called into question by 2008 financial crisis, as well as concerns about excessive greed/bankers’ bonuses)
Areas of political governance?
UN
NATO
Treaties (nuclear weapons)
How many countries possess nuclear weapons?
Nine - the US, the UK, France, China, Russia, Pakistan, India, Israel and North Korea
How many nuclear weapons are estimated to exist in the world today?
13,080
What is the best example of a treaty to limit nuclear weapons?
The 1968 Non-Proliferation of Nuclear Weapons Treaty, which aims to stop states from acquiring nuclear weapons and to persuade nuclear powers to disarm
How many signatories does the NPT have?
191
Evidence that the NPT was successful?
South Africa gave up its nuclear weapons when it signed the NPT
Since the 1980s, only one state (North Korea) has successfully developed nuclear weapons
Evidence that the NPT was unsuccessful?
Has not persuaded nuclear powers to disarm - in February 2017, Donald Trump announced his desire to increase the USA’s nuclear capabilities.
In March 2017, the USA led over 40 countries in a boycott of UN negotiations to ban nuclear weapons
Examples of powerful states withdrawing from nuclear weapons treaties?
In October 2023, the Russian government agreed a withdrawal of its ratification of the CTBT
In 2019, the US pulled out of the INF (Intermediate-Range Nuclear Forces Treaty), which banned intercontinental nuclear weapons
The CTBT has not entered into force as 8 of the 44 Annex-2 states (whose signatures are required for the treaty to enter into force) have not ratified the treaty. These include the US, China, Pakistan and North Korea
Membership of the UN
The United Nations (UN) has 193 Member States, which have grown from the original 51 in 1945. All UN Member States are members of the General Assembly. States are admitted to membership by a decision of the General Assembly upon the recommendation of the Security Council.
The only two non-member states are the Holy See (Vatican City) and Palestine, which are assigned the status of permanent observers of UN proceedings for political and religious reasons2.
Learn more:
How does NATO make decisions?
Consensus
How much money has the US contributed to NATO?
The U.S. contributes significantly to NATO’s defence budget, having contributed $21.9 trillion over the past 75 years. It allocates almost twice as much of its GDP as the rest of the members, making up two thirds of the total NATO defence expenditures.
Membership of NATO
NATO has 32 members from Europe and North America
Most recently, Finland and Sweden have joined, in April 2023 and and March 2024 respectively.
