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POLSCI 2I03 (101)
Andrew Lui (26)
Lecture 11

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Department
Political Science
Course
POLSCI 2I03
Professor
Andrew Lui
Semester
Fall

Description
Development, Trade and Global Health: Final will be the same format, with the presence of the essay questions. Final will be cumulative. The Regulation of Global Trade: GATT WTO Developing countries sign up to WTO voluntarily but choice heavily influenced by political pressures which favour powerful countries or blocks. When they act in concert the US and EU are usually able to convert their interests into law. They are able to use the institutional framework of WTO to exercise their power, that they have the most say in terms of how money is distributed, which country may receive that aid and the conditions of the aid. Websites on the course outline looks at the misconceptions of IMF and how it works. Regulatory structure presided over by IMF operates asymmetrically, favouring interests of advanced industrialized countries. IMF and World Bank have taken lots of criticism who say that this power development is detrimental. Because it favours the rich countries, the conditions associated with the aid are detrimental to the economy of those countries than the country receiving the aid. IMF and World Bank were created after the aftermath of WWII, to deal with the monetary or currency issues and the default issues (whether a country is able to pay its loans/ debts). To be a recipient of the IMF and WB, they are lenders of last resort they do not give out money freely to any country, countries that want money from IMF and WB they need to go to all the other private financial lenders first. Once they have demonstrated they have done, only then the IMF and WB will entertain proposals by the countries if they want. They only do it if the countries say they want monetary aid. They do not go to the countries and give them monetary aid. Criticism say that conditions attached to aid is unreasonable, but being a lender of money at all there are always stipulations of how you use that money. You have to have a business plan to show the IMF and WB how you are going to pay them the money. They are not charities in and itself. Emphasis: problem of development, how trade developments are connected, the development practices are connected to other measures. These are criticisms of the international trade system present today. They were created in the aftermath of the WWII. They came to stabilize western Europe, to help the countries battered by the world war and to help them stabilize. Neo-liberal institutionalism said that economies should be inter-dependent or increasingly inter-dependent that they would be less likely to go on war. So to make countries inter-dependent economically these institutions were created. Market Self-Regulation in Trade and Finance: Global trend towards market self-regulation increases vulnerability of one sphere to shocks arising from the other. Bretton Woods system engineered to serve the interests of stable global trade relations. Regulatory system generally follows very closely the perceived needs of the world’s most powerful economies. Often times the regulatory mechanisms is built in the IMF and WB to buffer the larger economies, the stability of the system as a whole. As a result, less emphasis on the solutions of these crises is placed. It favours the stability of the whole rather than individual parts. Implications: Post- 1970s move towards market self-regulation has been most noteworthy trend in spheres of global trade and global finance. Spill-over effects are a big concern of the way the current system operates. Because of decolonization and the function of the IMF and WB to integrate the global economies, it has created interdependence, but also vulnerability in smaller countries. World Poverty and Hunger: Traditionally, there has been a near-universal monetary-based conception of poverty among governments and international organizations  A condition suffered by people- mostly female- who do not earn enough money to satisfy their basic material requirements  Regarded as external to developed countries, but defining feature of the Third World  Provides justification for the former to help ‘develop’ the latter through market integration. Development was on a micro level, it was not about feeding the global south but to try to ensure that these countries would integrate into world capitalist system, and that their GDP would grow. And the people would study that. But series of things happen in 1970s -80s because of decolonization, failed plans, and types of aids given to south, and because of the proxy wars within Cold War people s
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