Economic Organisations Flashcards
(26 cards)
What is a Structural Adjustment Programme?
Conditional loans provided by the International Monetary Fund (IMF) and the World Bank to countries that experienced economic crises.
Often involves economic reforms and policy changes as conditions for receiving the loans.
Define the Washington Consensus.
A set of ten economic policy prescriptions considered to constitute the ‘standard’ reform package promoted for crisis-wracked developing countries.
These policies are supported by institutions like the IMF and World Bank.
What is a tariff?
A tax or duty to be paid on a particular class of imports or exports.
What was the principal goal of the Bretton Woods Conference in 1944?
Creating an efficient foreign exchange system and preventing competitive devaluations of currencies.
Who were the primary designers of the Bretton Woods System?
John Maynard Keynes and Harry Dexter White.
What currency was pegged to gold in the Bretton Woods System?
The U.S. dollar.
What important organizations were created by the Bretton Woods Agreement?
- International Monetary Fund (IMF)
- World Bank
When did the Bretton Woods system collapse?
1971.
What are the primary purposes of the IMF?
- Surveillance
- Capacity development
- Lending
What is the IMF’s role in the international financial system?
Maintaining stability, monitoring exchange rates, and giving policy advice to member states.
What was the IMF’s function before the collapse of the Bretton Woods system?
Acted as a ‘currency buffer’, lending to countries experiencing balance-of-payments deficits.
Since when has the IMF focused more on lending to developing countries?
Since 1971.
What significant update was made to the IMF’s mandate in 2012?
It included all macroeconomic and finance issues affecting global stability.
What percentage of votes does the USA hold in the IMF?
16.5%.
What are Structural Adjustment Programs often criticized for?
Being a form of neo-colonialism that undermines sovereignty.
What economic model was abandoned during the creation of Structural Adjustment Programs?
The Keynesian model.
What is one negative effect of privatization associated with Structural Adjustment Programs?
Negative effects on the reliability and affordability of access to water and electricity.
What is the main purpose of the World Bank?
To reduce global poverty.
How much did the World Bank provide in loans in 2016?
Over $63 billion.
What is one of the World Bank’s 2030 targets?
Reduce the percentage of the world’s population living on less than $1.90 per day.
What is a major weakness of the World Bank?
It is US-dominated, influencing policy prescriptions.
What does the WTO aim to eliminate?
Protectionism and promote free trade.
What did the WTO replace?
The General Agreement on Tariffs and Trade (GATT).
What is one strength of the WTO?
More democratic than other Bretton Woods institutions, with decisions made by simple majorities.
