IGO's

Question 1

IMF

Answer 1

Economic crisis - provide debt relief through loans
Focus on stability rather than growth
Focuses on LIC

Structural adjustment policies (SAP’s)
1. Open borders to FDI - privatisation of industries
2. Austerity = reduce government spend

Example = Ghana 2015
Overinflated public sector - borrowed from high interest lenders = price of their commodities dropped in value leading to unsustainable debt

IMF provided $918m loan - benefit from FDI

Evaluation:
- In Jamaica austerity led to a decrease spend on teachers and nurses

Question 2

World Bank

Answer 2

Developing countries = provide loan for infrastructure
Economic growth rather than stability
Focuses on both LIC and HIC

Also require SAP’s

Example = Philippines 2014
World Bank provided $470 loan
Benefit in rural areas from 5% increase in household income

Evaluation:
- In Tanzania they privatised the water industry = Citywater UK ended up switching up water to those who couldn’t pay bills

Question 3

WTO

Answer 3

1. Reduction in tariffs
2. Reduction in subsidies

Aim is to increase the flow of goods

Evaluation:
- Benefits TNC’s as they don’t pay tariffs
- Sunrise compares become outcompeted
- Increase reliance on foreign businesses

Question 4

Globalisation

Answer 4

World bank
- accelerate globalisation
- increase flow of goods

IMF
- accelerate globalisation
- increase FDI = flow of capital

WTO
- increase flows of goods
- absence means average country will face an increase in tariffs on exports by 32%

Question 5

Superpowers

Answer 5

USA = 16.5% of voting share in World Bank and IMF

Means they are able to Vito policies as they need an 85% acceptance rate to pass

SAP’s = open borders - promotion of capitalism

WTO = TNC’s - top 10 in the USA

All promoting Westernisation