Key Institutions

World Bank Created at Bretton Woods (1944) Stated objective: – Strengthen economies and expand markets to improve the quality of life for people everywhere (especially poorest) – Use first rate financial standing to invest in health, education and the environment – Advise globally on the investment of private capital in development projects.

In other words… The World Bank helps poor countries by investing in them, and creating projects to improve standards of living.

International Monetary Fund (IMF) Founded at Bretton Woods Was supposed to avoid mistakes that led to the Great Depression in 1930s. Key objectives: – Promote international monetary cooperation – Facilitate expansion and balanced growth of international trade – Promote high employment and sustainable economic growth – Reduce poverty

In other words… The IMF lends money to the member states (there are 184). Has been criticised as has a ‘one fits all’ approach. Power lies with the G8 nations (France, Germany, Italy, Japan, Russia, UK, US, Canada and the EU is also represented) US had stated it will not allow voting power to fall below 15%, which gives it veto power.

World Trade Organisation (WTO) Promotes globalisation. Set up in Key aims: – Liberalise world trade, – Promote economic stability, – Lay down the rules for world trade.

In other words… WTO resolves trade problems. There are issues because each state seeks to protect their own economies Example: Doha Round table would have raised developing states income by $60 billion.

1999 Seattle WTO meeting

2001 Genoa, death of Carlo Giuliani

Irony? Protestors accuse Western governments of hypocrisy because they promote trade liberalism in developing states, however their own barriers remain high. Ironically, it is globalisation that allows these protestors to so effectively argue their cause.(Mine Ban Treaty)

Stiglitz Protestors see globalisation in a very different light than the Treasury secretary of the US, or the finance and trade ministers of the most advanced industrial countries. The difference in views are so great that one wonders, are the protestors and the policy makers talking about the same phenomena? Are they looking at the same data? Are the visions of those in power so clouded by special and particular interests?

Case Study: Bolivia Background: ‘Revolving door presidency’ World Collapse in tin prices Foreign debt was $3 billion in Stopped repaying foreign debt and PRINTED MONEY! Massive inflation (hyperinflation) IMF & World Bank: limited aid ‘structural adjustment’

Activity from Text - Discussion 1.What were the aims of the IMF and World Bank in Bolivia? 2.What methods did the IMF and World Bank pursue to achieve these aims? 3.To what extent were the aims of the IMF and World Bank achieved in Bolivia? 4.What weaknesses of the IMF and World Bank does the case-study of Bolivia highlight?

Groups: Case Studies 1.What is the main argument/action of the organisation in this instance? 2.What is the intended aim of this? 3.Create a PMI chart as a group for this issue. (if time)