Case Study: WTO, WB & IMF Flashcards
(24 cards)
What is the purpose of global political organisations within global systems?
To provide stability and consensus across nations.
Which institutions support the global financial system?
The International Monetary Fund (IMF) and the World Bank.
What does the WTO oversee?
International trade and access to markets.
What has driven the creation of bodies like the IPCC?
Concerns about the global environment.
What are some criticisms of international institutions?
- Often led by powerful nations with vested interests
- Can increase inequality, conflict, and injustice
- Limit how less developed nations respond
What is the main role of the IMF and World Bank?
To regulate and act as intermediaries in international capital flow.
When and why were the IMF and World Bank created?
After WWII, to steady the global economy and provide financial stability.
What are the key functions of the IMF?
- Regulates financial flows
- Stabilises the financial system
- Monitors the global economy
- Advises governments on improving their economies
- Gives loans to countries with economic problems
When does the IMF provide loans?
When it will prevent a global economic crisis – as a last resort.
Who typically leads the IMF?
A European managing director.
What is the World Bank’s main aim?
To reduce poverty in less developed countries.
What areas does the World Bank fund in LICs?
- Health
- Education
- Infrastructure
Where does the World Bank get its funding?
From subscriptions paid by member countries.
What is expected of countries who receive loans from the World Bank?
They must repay the loans.
Who typically leads the World Bank?
An American president.
What is a key difference in their purposes?
- IMF: Stabilises economies
- World Bank: Develops economies
How do the IMF and World Bank differ in their staffing?
- IMF: 2,300 staff from 185 countries
- World Bank: 7,000 staff from 185 countries
How do they acquire funds?
- IMF: Member quotas
- World Bank: Borrowing and member contributions
Why are IMF and World Bank criticised for reinforcing inequality?
- Based in and led by HICs (USA and Europe)
- LICs needing loans have less influence
What conditions do IMF and World Bank often place on loans?
LICs must implement changes such as:
- Reducing regulations
- Making trade and investment easier
What are the key roles of the WTO?
- Supervise and liberalise trade
- Reduce trade barriers
- Settle trade disputes
- Negotiate international trade agreements
- Provide stability and predictability
How many members does the WTO have, and who are they mostly?
Over 160 members – mostly developing or least-developed countries.
How does the WTO make decisions?
By consensus among its members.
What is a major criticism of WTO trade practices?
Developed countries often keep trade barriers, limiting imports from LICs and harming their economies.
