Multilateral Institutions Flashcards
What is a multilateral institution?
an organisation involving many nation states
What are 3 examples of multilateral institutions?
World trade organisation
International Monetary Fund
World Bank
What does the IMF do?
offer financial and technical assistance to its members
How could the IMF and world bank be described?
western/Eurocentric
How do the IMF and world bank rely on security?
it is necessary so that loans and capital aren’t given to corrupt governments/individuals
Why might the IMF provide loans?
as a last resort to prevent a global economic crisis
What does the world bank do?
provide economic assistance, usually in the form of long-term loans, to help developing countries
How does the world bank rely on financial systems?
money comes from borrowing on the international bond market
What is a ‘top down’ approach?
government receives funding, that hopefully trickles down to the poorest people
What is a ‘bottom up’ approach?
funding given to communities and grass roots
What is the WTO?
an organisation dealing with the rules of trade between nations. Agreements signed by world’s trading nations and ratified in their parliments
What does ratified mean?
legally upheld
What is the aim of the WTO?
ensure trade flows freely, smoothly and predictably
What are 3 advantages of the WTO?
- ensures fair trading practices for LICs (SDTs), could reduce unequal flows
- reduces damage caused by protectionism
- decisions made by members
What are 3 disadvantages of the WTO?
- HICs remain dominant in disputes
- protectionism can protect LICs from dominance of HICs and TNCs
- processes can be long-lasting (eg Doha round ongoing since 2001)
