ECONOMIC GG REDUCE POVERTY?

Question 1

IMF/WB REDUCE POVERTY?

Answer 1

For- promote growth -
IMF reforms aim to liberalise trade, privatise state enterprises, and reduce deficits to attract investment and foster sustainable growth.
Classical Economic Development Theory supports opening economies to trade and investment to promote specialisation and efficiency.
Ghana (1980s): IMF reforms reduced inflation and fostered growth.
India (1990s): Rapid liberalisation led to 6–7% annual growth, global IT leadership, and extreme poverty falling from 45% (1993) to ~6% (2024).

Against -deepen poverty and dependency -SAPs required privatisation, deregulation, and cuts to public spending, harming essential services.
In line with Dependency Theory: reinforced Global South’s dependence on raw materials and exploitative global structures.
Sub-Saharan Africa: 38% still in extreme poverty; 75% of exports remain unprocessed raw materials.
Nigeria (1986 SAP): poverty rose from 28% to 66% by early 1990s; Zambia (1990s SAP): poverty rose from 49% (1989) to over 80% mid-1990s.

Question 2

2) WTO

Answer 2

FOR- free trade driving poverty reduction -WTO promotes free trade and prevents protectionism.
Bali Trade Facilitation Agreement (2013) cut global trade costs by 14.3%.
Global GDP tripled from $33T (2000) to $104T (2023); global extreme poverty fell from 35% (1990) to 9% (2019).
China’s WTO accession (2001) drove integration in global supply chains; 800 million people lifted out of poverty (1981–2019).

AGAINST - ENTRENCHING STRUCTURAL INEQUALITY-
Structural Theory: core countries dominate global markets; periphery nations trapped exporting low-value commodities.
Nigeria: 92% of exports are oil/gas; 40% of population in poverty; volatile revenues perpetuate poverty.
East Asia’s success (China, South Korea) driven by state intervention, not free market forces — contradicting Classical Economic Development Theory.

Question 3

UN/IGOS

Answer 3

FOR - DRIVE GLOBAL COMMITMENT TO REDUCE POVERTY - UN launched MDGs (halving poverty by 2015 — goal met early) and SDGs (ending extreme poverty by 2030).
SDGs address structural drivers of poverty (inequality, climate change, education, healthcare).
At COP26 and G7 2021, developed countries reaffirmed $100B annual pledge to help developing countries mitigate and adapt to climate change.

AGAINST - DOMINATED BY WEALTHY COUNTRIES -
IMF & World Bank voting power favours wealthy nations (US holds de facto veto).
WTO’s Doha Round failed as developed countries refused to end harmful agricultural subsidies.
World Systems Theory: global system benefits core nations; developed countries prioritise their interests.
$100B climate pledge (first made in 2009) remains unmet, showing lack of genuine commitment to tackling poverty.