Week 8 Flashcards
What is essential for development?
Credit
What are two sources of international finance?
- Foreign Aid
2. Private Capital Flow
What are two types of Foreign Aid?
- Bilateral Development Assistance
2. Multilateral Agencies (loans)
What are the types of private capital flows?
- Commercial Bank Loans (Debt)[portfolio]
- Bonds sold by Governments (Debt) [portfolio]
- Governments can issue bonds to private sector
- Share Purchases (Equity) [portfolio]
- MNC activities (Equity) [fixed]
What is an example of a private capital debt crises?
Latin America- Petrodollars and import substitution
What is an example of a foreign aid crises?
Africa (third world debt and poverty trap)
What are the seven most heavily indebted countries from the Latin America debt crises?
Argentina, Brazil, Chile, Colombia, Mexico, Peru, Venezuela
What was the US Brady Plan?
US protecting its commercial banking sector to protect its domestic political economy by engaging in inter state relations between itself and debtor states
Who had the Common Agricultural Policy(CAP)?
The EU
Which country had the Export Enhancement Program (EEP)?
The US
What are reasons for subsidising agriculture industry?
- International Food Production and Food Security
- National Cultures and Global Systems
- Vested interests, rational choice theory and the Hong Kong Ministerial of the Doha Round
What were difficulties for the WTO in reaching agreements?
- Number of negotiating states has increased to 147.
- Member states very diverse – development level and economic structure.
- Move to address more than tariffs induces political participation (e.g. environment, labour, health).
What did the inability to reach agreements in the WTO lead to?
Regional Trade Agreements
