Topic 8 EQ3 Flashcards
What are geopolitical interventions?
Exercise of a country’s power in order to influence the course of events outside its borders
Possible motives for geopolitical intervention
Offering development aid
Promoting international trade and protecting trade routes
Increase global influence
How are geopolitical interventions delivered?
Development aid
Economic support
Military support
Two main delivery routes of development aid
Bilateral
Multilateral
What is bilateral aid?
Aid that is delivered on a one to one basis
What is multilateral aid ?
Aid given by donor countries to international aid organisations such as the World Bank
What does a bilateral aid allow a donor country to donor?
Pursue its own agenda and to target aid at preferred objectives
Characteristics of multilateral aid
Donor country have virtually no control
Except powerful countries influence the development policy of large organisations such as the world bank
What is the official development assistance ?
OECD measures aid
What is the OECD target for aid?
0.7% of GNI for developed countries - agreed in 1970. It is now suggested that it should be at least one percent
What is the problem with aid given as loans ?
Interest rates and repayment. Receiver countries can enter a downward spiral as a result of increasing debt
Why is technical assistance more beneficial than loans?
Involves the transfer of expertise , technology and education. Contributes more to human development than capital . Effective at supporting bottom up approaches
What are the main two types of economic support intervention?
Trade
Investment
How can trade interventions boost economic development ?
Trade blocs to encourage free trade and increase exports
Exchange rates - lowering to increase the competitiveness of exports
How can trade interventions be used to force bad regimes to change ?
Embargoes - bans in trade
Sanctions - restrictions on trade