POLS 1500 Lecture Notes - Lecture 10: International Monetary Fund, International Court, Starbucks

61 views5 pages
International court of justice
When states have disputes or arguments they take it to the international court of justice
who then decide what happens
So if a member state does not follow the rules then the international court of justice can
put sanctions (punishments) on that country
The un and conflict resolution
If the security says that one state is threatening the other then war can come to be but
all five permanent members have to agree with the resolution
193 case study > read thinking about why we need the un
Was the war in Iraq a legal war ?
Cannot send a refugee back to the country that they came from, unless they are from a safe
country we have principles but they always have an exception
Economic globalisation
Starbucks in New Delhi first starbucks which opened in India
Clothing brands
Food (having mangos here)
Some signs that economic globalisation is occurring:
Global diffusion of capitalism (trade and finance)
Process in which international trade increases relative to domestic trade
Increased movement of goods, people, information, and money across borders- with
decreased time and cost
World is increasingly defined by single markets rather than by many separate markets
Great depression: (1930s)
protectionism : > States wanted to protect their own economies no interference
Protectionist :> policies exacerbated global depression
Gains in domestic consumption outweighed by losses of exports
Keynesian Economics:
During recession, no automatic equilibrium
Government intervention in the economy to promote economic growth and stability
Bretton Woods 2 Institutions:
> international monetary fund (IMF)
> International bank for reconstruction and development > world bank
Also created the treaty:
General agreement on tariffs and trade (GATT → WTO ) (1995)
The collapse of Bretton Woods (1971)
Floating exchange rates (i.e currencies no longer fixed to US dollar)
New exporters challenge US economy (i.e. Japan, South Korea)
New US import dutites
Oil Crisis (1973): OPEC raises price on oil
Neoliberalism and the washington consenus
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
Free market ideology
Trade liberalisation
Privatisation
Deregulations (fewer regulations from the government)
Fewer restrictions on capital flows
International Monetary Fund
IMF: - makes loans to states in order to stabilize their currencies
Provides fiscal and monetary advice ( operates based on principle of Conditionality)
Conditionality: IMF exercises the right to exercise control over the borrower’s economic
policies (give you the loan but do some stuff under that condition > privatize this and
reduce your thing in this) so structural adjustment
Structural adjustment programs: reduce inflation , control over government expenditure
(austerity), trade liberalisation, privatisation, deregulation
Voting → determined by how much a country contributes to the IMF
World bank
Originally founded to aid reconstruction in Europe after WW2
Currently a major source of development assistance
conditionality : borrowing governments must accept certain conditions to get the lon
189 member countries: weighted voting according to how much a state contributes
25 exclusive directors appointed from the largest shareholders (president is traditionally
from USA)
Global trade and the transnationalization of production
Criticisms of the Bretton Woods Institutions
Unequal representation
Lack of transparency
Undemocratic decision-making
Perpetuates cycle of poverty
Focus on mega-projects rather than smaller projects that can have a big impact locally
Loans have helped to prop up corrupt leaders
Maintains economic disparity between rich and poor
Bretton Woods (1944)
Goal 1→ promote economic and political stability international (1) monetary fund (IMF)
Goal → promote trade cooperation
General Agreement on Tariffs and Trade (GATT)
Multilateral agreement (1947-1995)
Government does not discriminate against imports of interfere with exports by using
trade barriers = FREE TRADE = TRADE LIBERALISATION
Most favoured nation: principle any preferential trading agreement reached with one
country must be extended to other countries
Non- discrimination: a state’s tariff on a good is the same for all trading partners
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class