8.2.9
International Institutions
International Organisations and Globalisation
International Organisations and Globalisation
Various international political and economic organisations are very important in the advancement of globalisation.
Bretton Woods institutions
Bretton Woods institutions
- Intergovernmental organisations (IGOs) like the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank promote free trade policies to encourage FDI and to accelerate globalisation.
- Since World War 2, these organisations have worked together to remove tariffs and quotas on goods that act as barriers to free trade.
Bretton Woods institutions cont.
Bretton Woods institutions cont.
- As more developing and emerging countries join the organisations, their actions to encourage free trade arguably continue to accelerate globalisation. China joined the World Trade Organisation in 2011.
- These IGOs are collectively referred to as the ‘Bretton Woods institutions’ after the place in America where they are established.
BRIC institutions
BRIC institutions
- BRIC refers to Brazil, Russia, India and China.
- New alternatives or rivals to the Bretton Woods institutions are rising as the BRICs gain global influence and set up their own organisations - such as the China Development Bank.
- In 2015, the BRIC nations set up the New Development Bank to rival the World Bank.
BRIC institutions cont.
BRIC institutions cont.
- By 2017, this New Development Bank had given loans of $1.5 billion dollars to member countries. Most of these loans went on developing renewable energy in these countries.
- China is particularly influential in Africa, where Chinese money funds lots of infrastructure projects in the likes of Kenya.
Intergovernmental Organisations (IGOs)
Intergovernmental Organisations (IGOs)
Lots of IGOs founded by the USA have a key influence on the global economic system. The World Bank and IMF are called Bretton Woods institutions (this is where they were established in 1944).
The IMF
The IMF
- The IMF was founded in 1944. It aims to help stabilise global currencies and it provides loans to developing countries to reduce poverty.
- In return for a loan, a country must enforce a Structural Adjustment Program (SAP).
- A SAP ensures that capitalism is promoted within the country and it can require a country to impose cuts to public services and privatise many state industries.
- Many countries (particularly those in Africa) can see the IMF as a lender of last resort.
- Many people also argue that SAPs and loans from the IMF result in the worsening of poverty for many developing countries as they can then become trapped in a cycle of debt (paying back debt & interest).
The IMF cont.
The IMF cont.
- Although the IMF is a global IGO, 8 countries control 47% of the total votes between them and these are the global superpowers.
- So, through their control of the IMF, the superpowers have significant influence over the global economic system.
- Recently, there have been reports of countries being loaned money from China in order to meet the conditions needed for further loans from the IMF.
- This is an example of China’s growing influence as a superpower and an alternative to the IMF.
The World Bank
The World Bank
- The World Bank was founded in 1944.
- Similarly to the IMF, the World Bank aims to support capitalism.
- It also provides loans to developing countries and provides finance following natural disasters and humanitarian emergencies.
- Whilst aiming to reduce poverty, the World Bank also wants to achieve sustainability.
The World Bank cont.
The World Bank cont.
- Sustainability is the ability to meet the needs of the current generation without compromising the ability of future generations to meet their own needs.
- The World Bank is currently working towards two goals for the world to achieve by 2030:
- To end extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%.
- To promote shared prosperity by ensuring that the income of the bottom 40% in every country increases.
1Introduction to Markets
1.1Nature of Economics
1.1.1Economics as a Social Science
1.1.2Positive & Normative Economic Statements
1.1.3The Economic Problem
1.1.4Resources
1.1.5Production Possibility Frontiers
1.1.6Specialisation & Division of Labour
1.1.7Types of Economies
1.1.8End of Topic Test - Nature of Economics
1.1.9Application Questions - Nature of Economics
1.2How Markets Work
1.2.1Rational Decision Making
1.2.2Demand
1.2.3Elasticities of Demand
1.2.4Elasticities of Demand 2
1.2.5Elasticity & Revenue
1.2.6Supply
1.2.7Elasticity of Supply
1.2.8Price Determination
1.2.9Price Mechanism
1.2.10Consumer & Producer Surplus
1.2.11Indirect Taxes & Subsidies
1.2.12A-A* (AO3/4) - Taxing Prices or Quantities?
1.2.13Alternative View of Consumer Behaviour
1.2.14End of Topic Test - Markets
1.2.15A-A* (AO3/4) - Markets
2Market Failure
2.1Market Failure
2.2Government Intervention
2.2.1Government Intervention in Markets
2.2.2Subsidies & Price Controls
2.2.3Pollution Permits & Regulation
2.2.4A-A* (AO3/4) - European Emissions Trading
2.2.5State Provision & Information Provision
2.2.6Government Failure
2.2.7End of Topic Test - Government Intervention
2.2.8A-A* (AO3/4) - Government Intervention
3The UK Macroeconomy
3.1Measures of Economic Performance
3.1.1Measuring Economic Growth
3.1.2National Income Data
3.1.3Inflation
3.1.4Causes of Inflation
3.1.5Consequences of Inflation
3.1.6Employment & Unemployment
3.1.7Causes & Impact of Unemployment
3.1.8A-A* (AO3/4) - Hysteresis
3.1.9Balance of Payments
3.1.10Current Account Deficit & Imbalances
3.1.11End of Topic Test - Economic Performance
3.1.12Application Questions Macroeconomy
3.2Aggregate Demand
3.3Aggregate Supply
3.4National Income
4The UK Economy - Policies
4.1Macroeconomic Objectives & Policies
4.1.1Possible Objectives
4.1.2Demand-Side Policies - Monetary
4.1.3Demand-Side Policies - Monetary 2
4.1.4A-A* (AO3/4) - The Future of Interest Rates
4.1.5Demand-Side Policies - Fiscal
4.1.6Demand-Side Policies in 2007-08
4.1.7Strengths & Weaknesses of Demand Side
4.1.8Supply-Side Policies
4.1.9Supply-Side Policies 2
4.1.10Conflicts Between Objectives
4.1.11A-A* (AO3/4) - Conflicting Incentives
4.1.12Phillips Curve
4.1.13End of Topic Topic - Policies & Objectives
4.1.14Application Questions - UK Policies
5Business Behaviour
5.1Business Growth
5.2Business Objectives
6Market Structures
6.1Market Structures
6.1.1Efficiency
6.1.2Perfect Competition
6.1.3Perfect Competition 2
6.1.4Monopolistic Competition
6.1.5Oligopolies
6.1.6The Prisoner's Dilemma
6.1.7Collusion in Oligopolistic Markets
6.1.8A-A* (AO3/4) - Which Factors Affect Collusion?
6.1.9Monopolies
6.1.10Price Discrimination
6.1.11Monopsony
6.1.12A-A* (AO3/4) - Models in Economics
6.1.13Contestability
6.1.14Benefits of Contestability
6.1.15End of Topic Test - Market Structures
6.1.16Application Questions - Market Structures
6.1.17A-A* (AO3/4) - Cereal Collusion
6.2Labour Market
6.2.1Demand for Labour
6.2.2Supply of Labour
6.2.3Labour Market Imperfections
6.2.4A-A* (AO3/4) - Labour Productivity & Unemployment
6.2.5A-A* (AO3/4) - What Level of Unionisation is Good?
6.2.6Wage Determination
6.2.7Elasticity of Labour Supply & Demand
6.2.8Intervention in Setting Wages
6.2.9End of Topic Test - Labour Market
6.2.10A-A* (AO3/4) - Labour Markets
6.3Government Intervention
6.3.1Reasons for Government Intervention
6.3.2Government Promotion of Competition
6.3.3Usefulness of Competition Policy & Examples
6.3.4A-A* (AO3/4) - Modern Competition Policy
6.3.5Privatisation
6.3.6Government Regulation
6.3.7A-A* (AO3/4) - Nationalisation vs Privatisation
6.3.8Government Protection of Suppliers and Employees
6.3.9Impact of Government Intervention
6.3.10End of Topic Test - Government Intervention
6.3.11Application Questions - Government Intervention
7A Global Perspective
7.1International Economics - Globalisation & Trade
7.2International Economics - Currency
7.2.1Merged Currency
7.2.2Restrictions on Free Trade
7.2.3Arguments for Protectionism
7.2.4Arguments Against Protectionism
7.2.5Balance of Payments
7.2.6Balance of Payments 2
7.2.7Floating Exchange Rates
7.2.8Fixed Exchange Rate
7.2.9International Competitiveness
7.2.10End of Topic Test - International Economy
7.2.11Application Questions - International Economics
8Finance & Inequality
8.1Poverty & Inequality
8.2Emerging & Developing Economies
8.2.1Measures of Development
8.2.2Factors Influencing Growth & Development
8.2.3Barriers to Development
8.2.4Barriers to Development 2
8.2.5A-A* (AO3/4) - The Bottom Billion
8.2.6Development Strategies
8.2.7Interventionist Strategies
8.2.8Aid
8.2.9International Institutions
8.2.10International Institutions 2
8.2.11End of Topic Test - Emerging & Developing
8.2.12Application Questions - Developing Countries
8.3The Financial Sector
8.4Role of the State in the Macroeconomy
9Examples of Global Policy
9.1International Policies
Jump to other topics
1Introduction to Markets
1.1Nature of Economics
1.1.1Economics as a Social Science
1.1.2Positive & Normative Economic Statements
1.1.3The Economic Problem
1.1.4Resources
1.1.5Production Possibility Frontiers
1.1.6Specialisation & Division of Labour
1.1.7Types of Economies
1.1.8End of Topic Test - Nature of Economics
1.1.9Application Questions - Nature of Economics
1.2How Markets Work
1.2.1Rational Decision Making
1.2.2Demand
1.2.3Elasticities of Demand
1.2.4Elasticities of Demand 2
1.2.5Elasticity & Revenue
1.2.6Supply
1.2.7Elasticity of Supply
1.2.8Price Determination
1.2.9Price Mechanism
1.2.10Consumer & Producer Surplus
1.2.11Indirect Taxes & Subsidies
1.2.12A-A* (AO3/4) - Taxing Prices or Quantities?
1.2.13Alternative View of Consumer Behaviour
1.2.14End of Topic Test - Markets
1.2.15A-A* (AO3/4) - Markets
2Market Failure
2.1Market Failure
2.2Government Intervention
2.2.1Government Intervention in Markets
2.2.2Subsidies & Price Controls
2.2.3Pollution Permits & Regulation
2.2.4A-A* (AO3/4) - European Emissions Trading
2.2.5State Provision & Information Provision
2.2.6Government Failure
2.2.7End of Topic Test - Government Intervention
2.2.8A-A* (AO3/4) - Government Intervention
3The UK Macroeconomy
3.1Measures of Economic Performance
3.1.1Measuring Economic Growth
3.1.2National Income Data
3.1.3Inflation
3.1.4Causes of Inflation
3.1.5Consequences of Inflation
3.1.6Employment & Unemployment
3.1.7Causes & Impact of Unemployment
3.1.8A-A* (AO3/4) - Hysteresis
3.1.9Balance of Payments
3.1.10Current Account Deficit & Imbalances
3.1.11End of Topic Test - Economic Performance
3.1.12Application Questions Macroeconomy
3.2Aggregate Demand
3.3Aggregate Supply
3.4National Income
4The UK Economy - Policies
4.1Macroeconomic Objectives & Policies
4.1.1Possible Objectives
4.1.2Demand-Side Policies - Monetary
4.1.3Demand-Side Policies - Monetary 2
4.1.4A-A* (AO3/4) - The Future of Interest Rates
4.1.5Demand-Side Policies - Fiscal
4.1.6Demand-Side Policies in 2007-08
4.1.7Strengths & Weaknesses of Demand Side
4.1.8Supply-Side Policies
4.1.9Supply-Side Policies 2
4.1.10Conflicts Between Objectives
4.1.11A-A* (AO3/4) - Conflicting Incentives
4.1.12Phillips Curve
4.1.13End of Topic Topic - Policies & Objectives
4.1.14Application Questions - UK Policies
5Business Behaviour
5.1Business Growth
5.2Business Objectives
6Market Structures
6.1Market Structures
6.1.1Efficiency
6.1.2Perfect Competition
6.1.3Perfect Competition 2
6.1.4Monopolistic Competition
6.1.5Oligopolies
6.1.6The Prisoner's Dilemma
6.1.7Collusion in Oligopolistic Markets
6.1.8A-A* (AO3/4) - Which Factors Affect Collusion?
6.1.9Monopolies
6.1.10Price Discrimination
6.1.11Monopsony
6.1.12A-A* (AO3/4) - Models in Economics
6.1.13Contestability
6.1.14Benefits of Contestability
6.1.15End of Topic Test - Market Structures
6.1.16Application Questions - Market Structures
6.1.17A-A* (AO3/4) - Cereal Collusion
6.2Labour Market
6.2.1Demand for Labour
6.2.2Supply of Labour
6.2.3Labour Market Imperfections
6.2.4A-A* (AO3/4) - Labour Productivity & Unemployment
6.2.5A-A* (AO3/4) - What Level of Unionisation is Good?
6.2.6Wage Determination
6.2.7Elasticity of Labour Supply & Demand
6.2.8Intervention in Setting Wages
6.2.9End of Topic Test - Labour Market
6.2.10A-A* (AO3/4) - Labour Markets
6.3Government Intervention
6.3.1Reasons for Government Intervention
6.3.2Government Promotion of Competition
6.3.3Usefulness of Competition Policy & Examples
6.3.4A-A* (AO3/4) - Modern Competition Policy
6.3.5Privatisation
6.3.6Government Regulation
6.3.7A-A* (AO3/4) - Nationalisation vs Privatisation
6.3.8Government Protection of Suppliers and Employees
6.3.9Impact of Government Intervention
6.3.10End of Topic Test - Government Intervention
6.3.11Application Questions - Government Intervention
7A Global Perspective
7.1International Economics - Globalisation & Trade
7.2International Economics - Currency
7.2.1Merged Currency
7.2.2Restrictions on Free Trade
7.2.3Arguments for Protectionism
7.2.4Arguments Against Protectionism
7.2.5Balance of Payments
7.2.6Balance of Payments 2
7.2.7Floating Exchange Rates
7.2.8Fixed Exchange Rate
7.2.9International Competitiveness
7.2.10End of Topic Test - International Economy
7.2.11Application Questions - International Economics
8Finance & Inequality
8.1Poverty & Inequality
8.2Emerging & Developing Economies
8.2.1Measures of Development
8.2.2Factors Influencing Growth & Development
8.2.3Barriers to Development
8.2.4Barriers to Development 2
8.2.5A-A* (AO3/4) - The Bottom Billion
8.2.6Development Strategies
8.2.7Interventionist Strategies
8.2.8Aid
8.2.9International Institutions
8.2.10International Institutions 2
8.2.11End of Topic Test - Emerging & Developing
8.2.12Application Questions - Developing Countries
8.3The Financial Sector
8.4Role of the State in the Macroeconomy
9Examples of Global Policy
9.1International Policies
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