Flashcards in Global systems Deck (44)
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1
how many countries are in the world bank
188
2
what does the world bank aim to do
promote financial cooperation between countries to reduce poverty - normally through the promotion of trade and high employment
3
what does the United Nations promote
the development of poorer nations through work with the IMF and world bank
4
what does the world trade organisation (WTO) do
deals in the rules of trade between countries ensuring trade flows freely
5
what is the international monetary fund (IMF)
it is an important source of financial and technical assistance to developing countries. its main aim is to reduce poverty
6
what is a transnational corporation (TNC)
a global company which operates in more than one country
7
where are the headquarters and where are the factories for TNCs
headquarters are usually in MEDCs with factories in LEDCs where labour is cheaper
8
what is the main difference between the IMF and the World Bank
world bank focusses on development projects (specific eg building schools) whereas the IMF seeks to maintain the global economy
9
what does the IMF promote
international monetary cooperation and provides policy advice to help countries build and maintain strong economies
10
what does the IMF provide compared to the world bank
IMF gives actual money and loans
world bank provides skills and assistance (has the goal to reduce poverty)
11
negatives of the IMF for poorer countries
decisions about which countries may borrow money are made by rich countries. poor countries have little say about loans and the conditions attached to them
12
conditions attached to borrowing money from the IMF
reduce government borrowing - higher taxes and lower spending
higher interest rates to stabilise the currency
allow failing firms to go bankrupt
privatisation, deregulation, reduce corruption
13
example of the IMF
in the Asian crisis of 1997 many countries such as Thailand were forced by the IMF to put in high interest rates and tight policy to strengthen exchange rates. but these changes caused a recession and high unemployment levels
14
benefits of IMF assistance
if a country has a balance of payments deficit the IMF steps in and fills the gap
serves as a council and advisor to countries attempting a new economic policy
publishes papers on new economic policies
15
where does the IMF get its money from
the quota system
bilateral borrowing
lending capacity
gold holdings
16
what is the aim of the WTO
to ensure that trade flows as smoothly as possible. want to remove as many barriers to trade as possible but have to ensure the highest levels of security
17
where does the WTO get its money from
the WTO's regular budget
voluntary contributions from WTO members
cost-sharing either by countries involved in an event or by international organisations
18
positives of WTO involvement
cut living costs and raise living standards
stimulate economic growth and employment
help countries develop
contribute to peace and stability
19
negatives of WTO involvement for poorer nations
benefits the wealthy nations as they have more of a say (more negotiation power as they have more TNCs) eg developed countries were forced to open their agricultural markets which damaged their economy)
20
who controls the WTO
the WTO is controlled by its members - the countries make their decisions through various councils and committees whose membership consists of WTO members
21
how many members does the world bank have
188 member countries
22
where does the world bank get its money
interest from the loans they hand out
23
what does the world bank promote
financial cooperation between countries to reduce poverty. normally done through the promotion of trade and high employment
24
examples of the aims of the world bank
eradicate extreme poverty and hunger
gender equality
universal primary education
environmental sustainability
combat diseases such as AIDS
25
how many staff in how many countries does the world bank have
7000 staff from 185 countries
26
name 3 positives of the world bank
provides qualifying governments with low interest loans, zero-interest credits and grants
debt borrowings and cash infusions help with global education, healthcare, infrastructure and development
shares information with world governments through advice, research and analysis
27
name 3 negatives of world bank involvement
some criticism over ethical issues (eg hydroelectric damns financed by WB displaced people downstream)
loan conditions mean countries can end up in more debt than before
WB works with private sector can cause role of state to be undermined- may result in a shortfall of necessary services (eg healthcare)
28
who controls the world bank
is run by its members
29
why does the voting system for the WB and IMF cause inequality
governments get votes based on the amount of money they put into the organisation
30
