Economic global governance

Effective

Encourages economic growth and development.

Has fostered more global free trade.

Global financial stability have given a framework of institutions to respond to crises quickly.

Greater international cooperation.

Has allowed for developing countries to grow at a rate that hasn’t occurred before.

Economic interdependence has allowed for long-lasting peace.

Ineffective

Disregards sustainable development and the environment.

Free trade over fair trade, and hasn’t always worked (Trump’s isolationism).

Not very adaptable at all. Global financial crisis in 2008 was not effectively responded to.

Weak enforcement mechanisms to make states do anything.

Applies a system of economics to countries that are incompatible with it creating a dependency culture/ locking them as a periphery state, creating rising inequality.

Impeding on state sovereignty with some of their requirements, and their conditional support.

Pushes a neo-liberal agenda/liberalisation. The institutions are biased towards the interests of Western states and TNCs.

Lack of accountability and transparency. Benefitting corporate interests, not societal welfare.

Having a small range of issues that they cover, and not addressing wider issues like human rights.

Exclusive, and often dominated by Western powers (US/EU) or great powers (China, Russia), working in their interests.

IMF (members)

190

IMF (UK borrowing money)

In 1976, the UK borrowed $3.9bn from the IMR as it struggled to deal with a deep financial crisis.

IMF (Goldenberg scandal)

The Kenyan Central Bank initially oversaw all currency movement in and out of the country. The IMF mandated that they had to allow for looser currency movement. Because of this, corrupt government officials were able to siphon billions of shillings out of Kenya in the 1990s in what came to be known as the Goldenberg scandal.

IMF (Nicaragua)

In 1994, the IMF cut thousands of public sector jobs, froze social spending, and introduced fees for health and education in Nicaragua, in order to achieve low inflation.

IMF (Argentina 2001)

Argentina experienced an economic crisis in 2001, generally believed to have been caused by IMF budget restrictions, which undercut the government’s ability to sustain national infrastructure in areas like health, security, and education.

IMF (Quota reforms)

IMF quota reform in 2010 saw the voting share of emerging economies increase. China’s voting share rose to 6.08% by 2018, and India’s rose by 1.8%, giving them more decision making influence.

IMF (SAPs in Greece)

IMF SAPs in Greece meant they had to implement austerity measures as part of its €289 billion bailout package during the Eurozone crisis. This included pension cuts, tax hikes, and lower public spending, leading to their GDP contracting by 25%, unemployment hitting 27% in 2013 (with youth unemployment peaking at 58%), and poverty rates doubling (affecting 36% of the population in 2014). The IMF worked with the ECB and European Commission- the ‘troika’.

IMF (Chad)

In 2015, the IMF gave Chad, the 4th poorest country in the world, $1.1 billion in debt relief.

IMF (SAP conditions for Argentina 2nd time)

In 2019, as part of the conditions to receive a SAP loan of $56 billion from the IMF (the largest loan in IMF history), the Argentinian government had to increase taxes on wealth and create a new independent body to review the government’s budget and make forecasts.

IMF (Sub Saharan Africa)

Sub-Saharan Africa (46 nations) have a voting share of around 6%, despite accounting for 16% of global population.

IMF (Zambia)

IMF Zambia measures led to poverty levels rising above 60%. Loan conditions, which placed a ceiling on public expenditure, blocked the employment of thousands of teachers, resulting in worse literacy rates in the country.

IMF (Decisions)

In the IMF, decisions require either a 50% or sometimes 85% majority. With the US having nearly 17% of voting power, they effectively have a veto, and so can shape IMF economic decision making.

IMF (Effective SAPs)

SAPs have proved effective in states such as Burkina Faso (which has diversified away from cotton dependency) and Ghana (moving away from rice production to gold and cocoa where it has considerable advantages as an exporter).

IMF (Regional Training Centres)

Regional Training Centres were established in Africa to build expertise in Sub-Saharan African states on having fair, effective, tax systems.

IMF (Unelected leaders)

The IMF has unelected leaders chosen by the US and EU, who are always European.

WORLD BANK (members)

169

WORLD BANK (UNICEF report)

UNICEF reported in the late 1980s that the SAPs given by the World Bank and the IMF were responsible for “reduced health, nutritional, and educational levels for 10s of millions of children in Asia, Latin America, and Africa”.

WORLD BANK (Largest sources of funding)

The World Bank is one of the largest sources of funding for developing countries, and has been working towards the UN’s SDG’s. Annually, the bank loans around $20 billion. In 2016 alone, it provided over $63 billion in low interest loans and grants to 275 projects in developing states for agriculture, transport, food, etc.

WORLD BANK (G7 vs other citizen votes)

A G7 citizen in the International Bank of Reconstruction and Development (part of the World Bank) has 6 to 23 more votes than the average person in other parts of the world.

WORLD BANK (Global South vs North)

In the World Bank, for every vote that the average person in the global North has, the average person in the global South has only 1/8th of a vote (and the average South Asian has only 1/20th of a vote).

WORLD BANK (Mozambique export tax)

In Mozambique, the IMF and World Bank ordered the removal of an export tax on cashew nuts, resulting in 10000 adults losing their jobs.

WORLD BANK (State Bank of India)

The World Bank gave the State Bank of India a loan of $700 million for solar energy.

WORLD BANK (president)

The WB president is always American, however the most recent president was born in India. In 2019, Trump nominated his former investment banker, David Malpass, as the (then) president of the WB.

WORLD BANK (Annually makes loans)

Annually makes loans of ~$20bn.

WORLD BANK (majority of funds from countries)

Majority of its funds come from 40 donor countries.

WORLD BANK (US vote shares)

The US has a veto with over 16% of shares in the bank.

WORLD BANK (Encouraged debt relief)

Encouraged debt relief for developing countries through the Highly Indebted Poor Countries Initiative.

WORLD TRADE ORGANISATION (members)

166 members, accounting for 98% of world trade.

WORLD TRADE ORGANISATION (World exports)

World exports in 2016 were 250 times higher than in 1948.

WORLD TRADE ORGANISATION (China case)

In 2015, China agreed to stop restricting the export of rare earth metals when it lost a case brought by the US, Japan, and the EU.

WORLD TRADE ORGANISATION (1990s backlash)

In the 1990s, the WTO consistently placed trade rules above environmental regulations. The resulting backlash saw one of the biggest anti-globalisation protests in history, known as the “Battle of Seattle” at the 1999 WTO summit. The meeting ended in collapsed negotiations and tear gas on the street.

WORLD TRADE ORGANISATION (Programme to the developing world)

The Aid for Trade Programme, launched in 2005, saw $340 billion being given to the developing world for them to participate in global trade.

WORLD TRADE ORGANISATION (European cow)

In 2005, a European cow on average received $2.20 a day from the taxpayer in subsidies and other aid, meanwhile 2.8 billion people in developing countries around the world would live on under $2 a day.

WORLD TRADE ORGANISATION (Fairtrade Foundation)

The Fairtrade Foundation revealed in 2010 how the $47bn in subsidies paid to rich-country producers created barriers for the 15 million cotton farmers across west Africa trying to trade their way out of poverty, and how 5 million of the world's poorest farming families were forced out of business and into deeper poverty because of those subsidies. This is a failure of the WTO to reduce subsidies to rich world farmers.

WORLD TRADE ORGANISATION (Doha Development round)

The WTO Doha Development round in 2001 launched to promote the needs of developing states, yet has consistently failed for over 20 years as the US and EU refused to remove their agriculture subsidies. The US has spent over $20 billion annually on farm subsidies, and the EU gave $54 billion to the Common Agricultural Policy (CAP) in 2022.

WORLD TRADE ORGANISATION (Trump tariffs 2017-2019)

From 2017 to 2019, Trump imposed $250 billion of tariffs on Chinese goods, with China placing $110 billion worth of tariffs on US goods in retaliation.

WORLD TRADE ORGANISATION (Ghana)

In Ghana, the influx of subsidised EU poultry decimated local industries. Local production fell from 95% in the 1990s to 11% by 2021.

WORLD TRADE ORGANISATION (Global trade rise)

2002-22 saw global trade rise from $6 trillion to $22.3 trillion.

WORLD TRADE ORGANISATION (Appellate body and DSS)

In 2016, the US began blocking appointments to the WTO Appellate Body, the third stage of the WTO dispute settlement system (DSS), arguing that it was overreaching its original mandate. Consequently, the Appellate Body is inoperative. In 2024, the US blocked requests to fill the DSS vacancies for the 75th time, proving the ineffectiveness of the WTO. The WTO is at a negotiations deadlock with the Doha round, and has a failing appelate body.

WORLD TRADE ORGANISATION (Subsidies to aircraft manufacturers)

Since 2005, the WTO has been arbitrating a dispute over whether the EU has illegally subsidised Airbus and the US have acted in the same way with Boeing.

WORLD TRADE ORGANISATION (Failed trade war and current tariffs)

The WTO have twice failed to prevent a trade war from breaking out between the US and China. US tariffs on China are at a massive 145%, and Chinese tariffs on the US are at 125%- although paused for a 90 day break, during which they are at 30% and 10% respectively)

G7 (created for)

G7 was created in the 1970s to respond to economic downturn following the oil crisis which led to inflation and recession.

G7 (Debt cancellation 1999)

In 1999, it cancelled $100 billion of bilateral and multilateral debt- the Cologne Debt Initiative. It went several steps further by doubling its aid to Africa and cancelling all debts of 19 countries owed to the IMF and the World Bank in 2005 at the Gleaneagles Summit in Scotland.

G7 (Debt cancellation 2007)

In 2007, the G8 leaders agreed to major debt cancellation of the world’s poorest, most heavily indebted countries- this amounted to around $30 billion for 36 countries.

G7 (Financial crisis response and Crimea)

In 2008, the member states met to co-ordinate their responses to the global financial crisis. Since 2014, the G7 has placed pressure on Russia to withdraw from Crimea and stop supporting Russian separatist rebels in eastern Ukraine.

G7 (Climate finance)

The G7 countries agreed in 2009 to contribute $100bn a year in climate finance to poorer countries by 2020, yet this target was not met.

G7 (Lack of binding power)

The G7 has been criticised due to its lack of binding power, and avoidance of controversial issues e.g. the failure to discuss tackling ISIS or the Greek Debt Crisis at Elmau in 2015.

G7 (Exclusive membership)

The G7 countries only accounted for 30% of global GDP in 2023, down from 67% in 1994. This proves that the G7’s influence is decreasing, as its exclusive membership restricts it from allowing any ideologically differing states to join. For example, China, who controls around 19% of global GDP and is the second largest economy in the world, is not part of the G7. Some say this is because it has an authoritarian government, which is far from Western liberal democracy, making China too ideologically different for them to gain G7 membership.

G7 (Munich protestors)

3500 protestors gathered in Munich during the 2022 G7 to demand the end of fossil fuels and stop financing wars/conflicts.

G7 (Cornwall Carbis Bay measures)

In 2021, the UK hosted the G7 summit at Carbis Bay in Cornwall. The agenda included several economic measures, including creating a global minimum corporation tax of 15%, pledging $2.75 billion over 5 years to the Global Partnership for Education, and responding to COVID by pledging 1 billion COVID vaccine doses for poorer nations. It also included recovery plans building on the $12 trillion of support for economies after the pandemic.

G7 (Failure of vaccine pledge)

This was far from the 11 billion vaccines that developing countries said they needed, and only really averaged out to every G7 member giving ~83 million vaccines (as the US alone donated 500 million). To put this in context, in April 2021 alone, the UK bought over 430 million vaccines for COVID, suggesting the G7 have the capacity to do much more.

G7 (2024 funding for Ukraine)

The 2024 G7 pledged a further $50 billion in financing for Ukraine.

G7 (Attempts to broaden)

Attempts have been made to broaden the G7/8 by including the so-called Outreach Five, consisting of Brazil, China, India, Mexico and South Africa.

G20 (created to)

G20 was created in 1999 to focus on financial stability.

G20 (Spending measures post-financial crisis)

In 2008 and 2009, G20 nations agreed to spending measures worth $4 trillion to revive their economies, rejected trade barriers, and implemented far-reaching reforms of the financial system.

G20 (Members)

Its members represent 85 percent of global economic output.

G20 (first meetings)

At the Washington (November 2008) and London (April 2009) summits – the G20’s first meetings – a package of measures to aid economic recovery was agreed, with a fund of $500 billion to stimulate economic growth.

G20 (Hamburg)

In Hamburg during the 2017 G20 summit, protestors gathered to push anti-capitalist sentiment, and criticise the illigitimacy of the G20, due to the decision making being behind closed doors.

G20 (DSSI)

The 2020 Saudi Arabia G20 supported the implementation of the G20 debt suspension initiative (DSSI) to help LICs with the debt that they faced after COVID.

G20 (2024 Rio summit)

India at the 2024 G20 summit in Rio flagged concerns for the Global South, specifically the adverse impacts on them by the food, fuel, and fertiliser crisis caused by global conflicts.” Helping LICs with sustainable development was a key area of discussion.

G20 (Russia power)

Russia, having considerable power on the world stage, meant leaders at the G20 vaguely referred to the “suffering” caused by the war in Ukraine without directly referencing Russia.

G20 (No formal charter)

There is no formal charter and the most important meetings are held behind closed doors to deter protesters.

POVERTY AND DEVELOPMENT (poverty in the past 50 years)

Over the past 50 years, poverty has fallen from 36% to well below 9%.

POVERTY AND DEVELOPMENT (Global GDP)

Global GDP has skyrocketed from ~$7 trillion in 1920 to ~$167 trillion in 2023.

POVERTY AND DEVELOPMENT (Trade liberalisation effects on China)

Since 1978, trade liberalisation has lifted 850 million Chinese citizens out of poverty.

POVERTY AND DEVELOPMENT (Coltan)

Apple and Samsung have been guilty of using unethical practices in mines in Congo for mining Coltan- a key element of their products.

POVERTY AND DEVELOPMENT (Sub Saharan Africa poverty)

In 2019, 413 of the 736 million in poverty were in Sub-Saharan Africa, and many in South Asia.

POVERTY AND DEVELOPMENT (OECD tax avoidance)

TNCs have been found by the OECD of avoiding paying $100 to $250 million in tax revenue annually- even this by some estimations is a large misrepresentation.

POVERTY AND DEVELOPMENT (Global tax abuse)

In late 2024, studies found that of the $492 billion lost to global tax abuse a year, 2/3rds is lost to MNCs shifting profit offshore to underpay tax, and the last 1/3rd lost to wealthy individuals hiding their wealth offshore.

POVERTY AND DEVELOPMENT (World production rise)

World production has increased from $33000 billion in 2000 to $82000 billion in 2019.

POVERTY AND DEVELOPMENT (Growers in the US)

Growers in the US are heavily subsidised by $3 billion a year in cotton production- farmers in Burkina Faso, Benin, Chad, and Mali, cannot compete, pushing them further into poverty, as they can’t sell their crops.

POVERTY AND DEVELOPMENT (Fastest growing economies)

For 2025, the fastest growing economies in the world are predicted to be in the Global South, with South Sudan, Guyana, and Libya having the highest projected real GDP growth rates, South Sudan leading with 27.2%.

POVERTY AND DEVELOPMENT (MNCs exploiting developing nations)

Large MNCs like Exxon Mobil (oil) are based in the US, but extract and refine oil from periphery states, like Angola, where it has a 20% market share. Profits are given to shareholders, while Angola becomes highly dependent on the MNC and vulnerable to international oil prices.

POVERTY AND DEVELOPMENT (Primary school enrolment)

There was an increase in primary school enrolment, from 83% in 2000 to 91% in 2015.

POVERTY AND DEVELOPMENT (Child mortality)

Child mortality reduced by more than half, from 90 to 43 deaths per 1000 live births between 1990 and 2015.

POVERTY AND DEVELOPMENT (Red Cross)

The Red Cross works in over 100 countries, with an annual spending of $2 billion.