SOC236H5 Chapter Notes -International Labour Organization, Structural Adjustment, Walmart
Document Summary
Financial institutions and other global corporations w/o national ties now use govts to dissolve any national restraints on their activities. Practice structural adjustment: borrower countries unable to obtain credit from other sources must change govt policies before loans are released. The number of votes a country receives is based on how much capital it gives the institution, so rich countries like the. World bank loaned to western european govts to help rebuild their countries after wwii bank turned towards. Development loans to 3rd world countries & receive criticism for favouring large, expensive projects regardless of their appropriateness to local conditions. Imf: lender of last resort to member countries that can"t borrow money from other sources (prevent countries from defaulting on previous loans from private banks) Imf conditions = structural adjustment program/austerity plan: eliminate price controls, subsidies, devalue its currency, or eliminate labour regulations like minimum wage laws (working class, poor are affected)
