The World Bank, IMF and NGOs Flashcards
The World Bank helps to promote growth and development in two main ways:
The World Bank helps to promote growth and development in two main ways:
- Development loans - to help countries in need
- Debt relief - for countries who can’t afford to pay their loans back
How much money did the World Bank loan out in 2016?
In 2016, the World Bank loaned out $61 billion to countries in need of development loans.
The International Monetary Fund
- Maintaining stability in the global economy
2. Occasionally provides bailouts to countries in need
How much money did the International Monetary Fund give to Greece as a bailout in 2010?
In 2010, the International Monetary Fund offered Greece a $147 billion bailout.
In 2012, an organisation gave a US$500 million loan to Tunisia in order to reduce absolute poverty and to help create jobs. Which organisation is most likely to have given this loan?
The World Bank helps to promote growth and development in two main ways: offering development loans to countries in need and offering debt relief to countries who can’t afford to pay their loans back.
This $500 million loan is a development loan, as it aims to reduce poverty and create jobs.
Which of the following are roles of the World Bank?
The World Bank helps to promote growth and development in two main ways: offering development loans to countries in need and offering debt relief to countries who can’t afford to pay their loans back.
Why are non-governmental organisations most effective in promoting growth and development?
Non-governmental organisations can help to promote growth and development. They tend to focus on specific issues, which means that they can provide more specialised knowledge and skills. They also often operate on a local scale, which means they are often more aware of the needs of the local population. These are known as grassroots organisations. Since they are often smaller, they are usually less bureaucratic than the World Bank/IMF - they have less paperwork and inflexible processes.
World Bank
A bank for countries which promotes development by offering development loans and debt relief.
International Monetary Fund
An organisation which monitors the global economy to ensure that it is healthy and stable. They occasionally offer bailouts to countries in need.
- Non-Governmental Organisations
Help to promote development by focusing on smaller-scale, specific issues.
n 2018, an organisation released a statement about Egypt’s economy. They said, “The results are clear: macroeconomic stability and market confidence has been restored, growth has resumed, inflation has fallen, and the public debt ratio is expected to fall for the first time in nearly a decade’.
Which of the following organisations is most likely to have released this statement?
The International Monetary Fund monitors the global economy to ensure it maintains stability. They occasionally offer bailouts to countries in need. In this case, they have monitored many aspects of the Egyptian economy and found it to be improving.
Why might non-governmental organisations be more effective at promoting growth and development than organisations like the World Bank?
Non-governmental organisations can help to promote growth and development. They tend to focus on specific issues, which means that they can provide more specialised knowledge and skills. They also often operate on a local scale which means they are often more aware of the needs of the local population. These are known as grassroots organisations. Since they are often smaller, they are usually less bureaucratic than the World Bank/IMF - they have less paperwork and inflexible processes.
Why might non-governmental organisations be less effective at promoting growth and development than organisations like the World Bank?
Disadvantages of NGOs are that they have much lower budgets than the multilateral organisations like the World Bank and the IMF. This often means they can have less impact and don’t benefit from economies of scale. They also have less power on the world stage as they are smaller, and so they are perhaps less able to influence governments and policy.
