IGS 10a Lecture Notes - Lecture 20: Odious Debt, International Monetary Fund, Free Trade
26 Aug 2016
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Drawn up in 1944: dominatd postwar economics. Lend to developing, decolonizing countreis to establish new currencies, manage current account crises. Lend large amounts to developing coutnreis for capital improvements. Organize trade talks to lower tariffs worldwide. Stiglius: odious debt- debt that"s been signed on by someone else and the nation has to pay back the debt (the burdens of someone else signing on) Classic views of trade: mercantilism -- world trade, like international politics, is a sero-sum game, liberalism -- world trade, like international politics, need not be a zero-sum game, structuralism -- world trade harms under-developed nations. World divided into classes -- exploiting and exploited. Exploiting class takes value of surplus labor from workers. Free trade benefits coutnries who are in the strongest position to trade. Supposeduly free trade system is really set up to benefit the rich countries (becuase poorer world has to sell cheap labor or natural resources) They"re both talking about american companies moving to overseas.
