WTO

Question 1

successes of WTO

Answer 1

-agreeing to WTO rules can forge new trade links e.g. vietnam removed all quotas with europe in 2015 = created 31mil jobs in europe as exports to th 90mil consumers in vietnam ensured exports continued

• creates predictability with trade as cant introduce trade limits

-trade without discrimination (avoiding preferential trade agreements - WTO still allows tariffs and trade restrictions in certain conditions e.g. protection against dumping of cheap surplus good

Question 2

failures of WTO

Answer 2

-1980, 75% guatemalas cotton crop was exported and if guatemala processed raw cotton into finished clothes and exported these instead, they’d earn a lot more
-if only 1% of their land is devoted to cotton farming, then same income is generated so if they were allowed to grow more they could enter new markets

-WTO policies make this hard and guatemala tried exporting raw cotton until competition from other countries ended production completely in 2000’s

-Decisions often involve powerful govs and TNC’s which can negatively impact others e.g. pakistan fishing

-Ghana farmers no longer subsidised so cant compete with imported products from USA or europe (where gov were allowed to subside their farmers

-WTO policies mean tariffs on manufactured products but now raw e.g. raw cotton guatemala no tariffed but the clothes made from it are so guatemala stopped from making clothes and generating more income and a profit. Some cotton farmers given up farming completely - 80’s 75% of their cotton exported

Question 3

what does the IMF do

Answer 3

lend money for development purposes

maintain international financial stability

in return for loans, it tries to force countries to privatise

Question 4

IMF successes

Answer 4

• aims to reduce poverty worldwide and promote employment and economic growth

-Ensure govs have solid plans in place e.g. IMF criticised UK gov for being irresponsible with financial plans

Question 5

IMF weaknesses

Answer 5

• loans loaded with conditions as they are provided as a rescue for seriously in debt countries but often have to reapy at hefty interest rates

Question 6

what does world bank do

Answer 6

• financial economic development and assistance mainly in europe

Question 7

World bank successes

Answer 7

• help countries implement projects e.g. building health centres and schools or making clean water and electritcity more available
• loans not used as ballout like IMF but a fund for projects to help developed underdeveloped countries and grow economically

-offer loans to underdev countries at low interest rates

-offer debt relief so countries not faced with economic crisis

Question 8

world bank failures

Answer 8

• power rests with rich as richer countries have more assistance offered
• investments in fossil fuels rather than renewable

-doesn’t safeguard forests and sometimes overstepped local people boundaries

-development projects can cause harm e.g. violation of human rights = forced eviction and displacement fo communities = food insecurity and forced child labour