PSCI-1102 Lecture Notes - Lecture 25: Latin American Debt Crisis, Bilateral Investment Treaty, Undue Influence
11 Nov 2016
School
Department
Course
Professor
Document Summary
Frequent attempts have been made to by create institutions to mediate financial interactions and facilitate mutually acceptable outcomes. At bretton woods in 1944, the us proposed creating the institution of the imf in the recognition that monetary and financial markets are prone to socially disastrous failure. A monetary institution that took on a greater financial role. All member states have a vote on its actitivities, but these votes are proportional to the member"s financial contribution to the imf resources. This has led to complaints that the imf is largely a tool of its richer and most powerful members. Countries can borrow from the fund in a crisis at low interest rates, but these funds come with conditions. If the debtor complies with imf norms, they are certified. Provides concessional lending at below-market interest rates to developing countries to help them implement development projects such as infrastructure projects (dams, roads, bridges)
