Political And Economic Organisations 😊

Question 1

What does the IMF stand for?

Answer 1

International Monetary Fund

Question 2

What does the IMF do?

Answer 2

Lends money to governments in return for economic liberalisation (moving towards free market or trade)

Question 3

When and where was it set up?

Answer 3

Bretton woods hotel

1944

Question 4

What countries were present?

Which were missing?

Answer 4

USA, Canada, Western Europe, Australia, New Zealand

Asia, Africa etc…

Question 5

What rules were introduced in 1946? X5

Answer 5

1. Currencies were tied to US dollar
2. Standardised production so people can trade with other countries
3. Tried to eliminate trade protectionism where countries protect own industries
4. Promoted free market economies and liberalisation to encourage free trade
5. Reduce quotas, subsidies and tariffs

Question 6

Case study for debt

Answer 6

Jamaica

Question 7

Jamaica at a first glance… negatives X6

Answer 7

. Lack of hospital facilities 
. Poor schooling 
. No proper sewage/ disposal methods 
. All goods are cheaply shipped 
. Jamaicans cannot travel freely 
. Currency is weak

Question 8

What is the world bank?

Answer 8

Lends money for development projects and rebuilding after disasters

Question 9

What did IMF and WB do in exchange for loans? X4

Answer 9

Devalue currency- so everything is cheaper
Cut spending on healthcare and education
Raise taxes
Reduce trade barriers

Question 10

Farming- what did the IMF make Jamaica do? X5

Answer 10

1. Farmers had to pay 20% interest
2. USA are interested in selling their potatoes in Jamaica
3. America subsidise their own farmers but don’t let Jamaica
4. They dropped subsidies and barriers
5. They make Jamaica buy products from them then don’t accept Jamaica’s product

Question 11

What has occurred with Contract farming?

Answer 11

No more farming- goods are imported abroad

They make them buy products before refusing to accept their products

Question 12

What are free zones? X3

Answer 12

People operate with no taxes
Areas set up factories with jobs for the locals
Created low level employment

Question 13

How were workers treated in the free zone? X4

Answer 13

Exploited
Poor wages
No health and safety
Chinese work for cheaper- loss of Jamaican jobs

Question 14

How do IMF votes work?

Answer 14

Need 80% of votes to change rules
Votes allocated by size of the economy
USA accounts for 17% alone

Question 15

What happened with the McDonald’s law suit?

Answer 15

Jamaican McDonald’s claimed their brand was first

Claimed for copy right

Question 16

What has occurred with the meat at the Jamaican McDonald’s?

Answer 16

McDonald’s agreed to use Jamaican beef but imported cheap, steroid injected meat from USA

Question 17

Effects on Jamaica?

Answer 17

. More coffins are required
. Lots of poverty, crime and violence
. Civil unrest due to inequalities
. Slavery to IMF