IGOs and World Trade

Geography: Edexcel A Level, topic 11.4.3

Three IGOs established after the Second World War have controlled the rules of world trade and financial flows.

The three IGOs have helped to maintain the dominance of 'western' capitalism as the dominant paradigm in the globalised economy.
They support free trade and economic development.
They initially established a fixed exchange rate system based on gold and the dollar, aiming to help increase international FDI and capital flows.
Increasing the funding and capital available to developing countries helped them to develop and grow.

The World Trade Organisation

The WTO aims to reduce the trade barriers between different countries.

The WTO tries to get all countries internationally to agree to the same terms that help to create free trade.
The latest round of talks began in Doha in 2001, but have not yet been concluded.

According to the WTO 'tariffs give a price advantage to local producers'. They are effectively a tax on imports.
The WTO tries to reduce barriers to trade (like tariffs). The WTO tries to persuade nations to reduce their tariffs on a range of goods and services.

The International Monetary Fund (IMF) promotes global economic and financial stability. The World Bank lends money to fund development.

The IMF encourages developing countries to accept foreign direct investment (FDI) and open up their economies to free trade.
The IMF is often criticised for promoting a 'western' model of economic development that works in the interests of developed nations and TNCs.
In 1976, Britain had to borrow $3.9bn from the IMF when it faced an inflationary crisis.
In 2018, Argentina accepted a $50bn loan from the IMF after their currency, the Argentinian peso, weakened materially.

The World Bank lends money to the developing world to fund economic development and reduce poverty.
The World Bank has helped developing countries develop connections with the global economy.
It is sometimes criticised for having policies that prioritise economic development over social development.

The WB, WTO and IMF support what?
What did the Bretton Woods institutions establish initially?
How much was the loan that Argentina accepted in 2018 from the IMF after their currency, the Argentinian peso, weakened?
How large was the loan that Britain accepted from the IMF in 1976?