Role of IGO's Flashcards
What are intergovernmental organisations (IGOs)?
Organisations like the IMF and their role with global economics
IGOs facilitate international cooperation and policy-making on various global issues.
What role do national governments play in globalization?
Some national policies encourage connectivity with the rest of the world
National governments can influence global trade and economic relations through their policies.
What significant event took place in Bretton Woods in 1944?
Attendees decided on a capitalist framework to create more money and promote economic stability
The Bretton Woods Conference established the IMF and World Bank to promote global economic cooperation.
What is the main function of the World Trade Organization (WTO)?
To ensure that trade flows as smoothly, predictably, and freely as possible
The WTO establishes and enforces global trade rules among nations.
List the roles of the International Monetary Fund (IMF).
- Promote global financial stability
- Ensure exchange rate stability
- Forum for international monetary cooperation
- Provide temporary payments to members experiencing difficulties
The IMF plays a crucial role in maintaining international economic stability.
What was the initial aim of the World Bank?
Reconstruction and economic development after WWII
The World Bank focuses on long-term economic development and poverty reduction.
What types of projects does the World Bank invest in?
- Infrastructure
- Energy
- Health
- Education
- Poverty alleviation in developing countries
These investments aim to improve living conditions and promote sustainable development.
True or False: The IMF provides loans to countries to prevent global financial crises.
True
The IMF helps stabilize economies to prevent negative impacts on the global economy.
Fill in the blank: The World Trade Organization deals with the global _______ of trade between nations.
[rules]
The WTO establishes guidelines to facilitate international trade.
What year did Pakistan join the World Trade Organisation (WTO)?
1995
This membership required Pakistan to comply with WTO trade rules.
What did Pakistan enforce around its coast before joining the WTO?
A 200-mile exclusion zone
This zone was designated so that only Pakistani fishing boats could fish there.
What type of vessels were allowed to fish in Pakistan’s coastal waters after joining the WTO?
Deep-sea trawlers owned by TNCs
TNCs refer to transnational corporations.
What has happened to Pakistan’s fishing communities since the introduction of foreign competition?
They are left in poverty
Local fishermen report a significant decline in their livelihoods.
What report did ActionAid publish in 2013 regarding Pakistan’s fishing industry?
‘Taking the fish’
The report highlighted the declining fish stocks and the impact on local fishermen.
What did ActionAid find about Pakistan’s fish stocks?
They were falling to dangerously low levels
This decline affected the rights of coastal villagers to fish.
Fill in the blank: The WTO’s purpose is to promote _______.
free trade
It achieves this by persuading countries to abolish import tariffs and other barriers.
True or False: The WTO is responsible for overseeing the rules of international trade.
True
It also polices free trade agreements and settles trade disputes.
What do countries typically need to do to comply with WTO trade rules?
Abolish import tariffs and other barriers
This compliance is often associated with globalization.
What is the significance of the 200-mile exclusion zone?
It allowed only Pakistani fishing boats to fish there
This was a protective measure for local fishermen before WTO membership.
What has been a consequence for local fishermen due to the presence of foreign trawlers?
Thousands were forced to give up fishing altogether
Many fishermen reported losing their means of livelihood.
What are the four main points of opposition to the WTO?
- Sovereignty issues due to pressure on states to change laws
- Lack of significant weight on problems declared as violations of free trade rules
- Rich countries not fully opening their markets
- Lack of democratic accountability in hearings on trade disputes
True or False: The WTO gives significant weight to problems declared to be in violation of free trade rules.
False
What is a significant criticism regarding rich countries and the WTO?
They have not fully opened their markets to producers from poorer countries
What is a major concern related to the democratic accountability of the WTO?
Its hearings on trade disputes are closed to the public and media
What is one argument in support of the WTO?
It is democratic as its rules were written by member states
How does the WTO help to raise living standards?
By expanding free trade
In the 1980s, what percentage of Guatemala’s cotton crop was exported?
75%
What could have increased Guatemala’s export earnings instead of exporting raw cotton?
Processing its raw cotton into finished clothes
Fill in the blank: Only ______% of the land devoted to cotton production would have been needed to generate the same income as finished clothes.
1
What happened to Guatemala’s cotton production by 2005?
Competition from other countries ended production completely
What do TNCs now do in Guatemala regarding cotton?
They import raw cotton and use the workforce to produce cheap T-shirts for export
What was the impact of WTO policies on Guatemala’s ability to grow other crops?
It made it difficult for Guatemala to grow other crops
