Superpowers enquiry question 2 Flashcards
What are the Bretton Woods institutions?
IMF and WB
What is the IMF’s purpose - then and now?
- was to stabilise countries after ww2, preventing poverty and communism
- now money loaned out to help countries in debt, stabilising economies.
What does the IMF reflect?
The interest of America and Europe as the richest countries get the most voting power.
How can the IMF be harsh?
As it helps for superpowers to maintain power as they make nations dependent on them and therefore have the power to limit their development as the imposed conditions of borrowing money is decided by the wealthiest members.
How much voting power does the US have in IMF?
17%
What is the World Banks purpose?
To finance development as well as focusing natural disasters and humanitarian emergencies
How much voting power does the US have in the WB?
16%
How can powerful nations retain control in IGO’S
Due to some for of veto policy, therefore they can block policy and make sure that things are in their best interest.
What are the 6 steps to freedom that the WB and IMF SAP’S advocate for?
- reduced protection of domestic industries
- remove or decrease financial regulations
- minimum or no state control
- cut social spending
- removal of price controls
- raising interest rates to tackle inflation
What doe SAP stand for?
Structural Adjustment Programmes.
What does the OECD stand for
The Organisation for Economic Cooperation and Development
Name four important IGO’s in Global Economic Systems
IMF
World Bank
OECD
WTO
What does the WTO do?
The World Trade Organisation aims to ease trade and remove barriers to trade.
Pros of WTO
fairer system as one country uses one vote
Cons of WTO
voting has never occurred so undermines the pro
WTO is seen as a ‘rich man’s club’ biggest markets usually decide the outcome.
WTO and subsidies
removing/reducing farm subsidies makes trade fairer, however only rich can afford to subsidise their industries giving them an unfair advantage in market place.
What are subsidies
financial assistance to a business by the government to make it competitive and prevent potential collapse.
What is the negative of aid in international relations - GOOD EVALUATION POINT
aid always brings out influence, government given aid and monetary generally have a bad perception as it helps no-one
IMF IVORY COAST EXAMPLE
- IMF prevented Ivory Coast from receiving aid until 2013, only did so when government was transparent
- UN still bans diamond exports from the area due to them financing previous civil war.
negative of blue agreement on agriculture
ALLOWS SUBSIDISES TO BE GIVEN, SO LONG AS PRODUCTION IS REDUCED IN THE LONG TERM.
this allows farmers to go on producing large volume of goods at subsidised rates, eu and us then buy these and dump them on developing countries as a ‘form of aid’
Example of dumping aid (agriculture)
Tomatoes from Europe dumped on Ghanaians that already had large tomato production
Criticism of WTO
run by the rich for the rich
What is cultural imperialism
empires and particular groups taking over through cultural dominance and americanisation.
What are patterns of trade?
Who you trade with EU, China and US dominate world trade so therefore can exert influence. Developed countries have a greater share of global trade than developing countries as they mainly export valuable manufacture goods.
What three ways do TNCs help superpowers dominate and why are these important maintain status.
Westernisation, Patterns of trade and Patents
As the economic underpins the other factors when reaching superpower status.
What are patents?
They protect the rights of the inventor for at least 20 yrs, blue print that every time is produced producer gets paid e.g. covid vaccine.
Consequently rise in fake goods.
What percentage of fake goods are in world trade?
approx. 2.5%
How much money do counterfeiters produce in fake products worldwide per year
$700 billion
What is the westernisation
the control of the biggest advertising budgets, selling a way of life and influencing the biggest and wealthiest markets e.g. apple and amazon
Example demonstrating TNC influence over govt?
HSBC announced its headquarters would leave the UK due to the imposition of a banking levy in 2015.
in 2016 the govt reduced this to persuade them to stay
Why do fewer state companies exist?
Due to privatisation in the USA and UK in 1980s - 90s
Where did UK rank in 2015 soft power index?
first
What is soft power?
It describes the use of positive attraction and persuasion to achieve foreign policy objectives. The ability to cooperate rather than coerce, shaping others preferences
What are nye’s three sources of soft powers
- political values
- culture
- foreign policy
What 6 things can measure soft power?
govt
culture
education
global engagement
enterpise
digital
What is important when considering soft power
REPUTATION
What are the three important factors in international decision making
crisis response
conflict prevention
climate change mitigation
Describe crisis response
The focus on aid and humanitarian projects for refugees. Direct aid is needed.Large scale equipment is generally better than money due to corruption.
Example of crisis response - one broad, one detailed
Britain and USA biggest contributors of aid in Syria
Britain contributed over $1.5 billion of aid to 2016 humanitarian crisis in Syria