Flashcards in Global systems Deck (56)
What is the Frank and Wallerstein's core-periphery model of a world system?
A model which assumes that global power is concentrated through developed countries which loan TWB and the IMF who then loan money to poor countries for development and to stabilise the economy. Over time the periphery regions will repay the loan to the financial markets who then repay the core regions
Why is the Frank and Wallerstein model slightly outdated?
Rapid growth of large medium-income economies such as the BRIC and, more recently, MINT countries mean there is now a continuum of development, so many more regions of the world might be envisaged as the core
What is the BRIC?
An acronym used to identify a group of four countries - Brazil, Russia, India and Chine - whose economies have advanced rapidly since the 1990s.
What is the MINT?
An acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey
What is KOF?
A global institution who monitor and research into globalisation
What are the three dimensions of KOF?
Economic, Social, Political
According to the KOF index, who are the 3 most globalised countries?
Belgium, Netherlands, Switzerland
According to the KOF index, who are some of the lease globalised countries?
Sudan, Chad, Ethiopia
What does quality of life correlate too?
The level of globalisation
What is a natural outcome or side effect of increasing globalisation?
The increasing interdependence of the people and nations who live in that country
Who are the ones that oversee the global economy?
The World Bank
The international Monetary Fund
World Trade Organisation
Why are the 3 who oversee the global economy crucial to our economy?
They are fundamental in supporting the structure of the worlds economic and financial order, allowing for a stable global economy
What does the IMF do?
Oversee the global financial system - ensure its running smoothly
What does The World Bank do?
Promotes economic development in developing countries - focusing on LDCs
In what way does the IMF support the global financial system?
Offers financial and technical assistance to its members
In what way does The World Bank support the global financial system?
Provides long-term investment loans for development projects with the aim of reducing poverty
When will the IMF provide loans?
Only when it will prevent a global economic crisis - last resort
How did the IMF help Greece?
By stopping a domino effect when there was a financial crisis
When will The World Bank provide loans?
Provides special interest-free loans to countries with a very low per-capita incomes
How low does the per capita figure need to be for The World Bank to provide a loan?
US$865 per year
What is the purpose of a loan given by the IMF?
Helps members tackle balance of payments problems and stabilise economies
What is the purpose of a loan given by The World Bank?
Encourages start up private enterprises in developing countries
Who is the IMF funded by?
The quota subscriptions of its 185 member countries
Who is The World Bank funded by?
It acquires financial resources by borrowing on the international bond market
How big is the IMF?
Has 2300 staff from 185 countries
How big is The World Bank?
7000 staff from 185 countries
Why is the IMF criticised?
It imposes austerity cuts on loan recipients, subsequently education and health may suffer
Countries who put in the most money get voting rights - unfair as they may choose who they are dependant on
Why is The World Bank criticised?
Has often funded large top-down related projects such as multi-purpose HEP dams (since the 90s they claim to support the bottom-up projects)
What is a bottom-up project?
When local people are consulted and supported in making decisions to undertake projects or developments that meet one more of their specific needs